Redesign an organization – Part 4

Welcome back to our last article on how to redesign an organization.

So you:

  • Prepared the methodological background (here)
  • Understood your internal and external customers (here)
  • Understood current and perspective financials (here)

Now is time to put the mix together!

First of all you should prepare the representation of your organization and the interaction with surrounding stakeholders.

This is not a trivial task because rendering the richness of an average organization goes well beyond designing a “flat” organizational chart.

The suggestion is to build a guided index (much like a hypertext) that going from a big picture representing the main context, digs then down into further details, including more traditional organizational charts.

You can imagine in another way this as an “Atlas” of your company.

Once this is done you need to represent the way the decisions are taken so to:

  • name and represent all activities and decisions that occur in your organization  for effective operations
  • clarify roles and each level of participation in relation to best way for each involved party to fill these roles

This is a typical document accompanying organization redesigns and is call a “RACI” chart (Responsible, Accountable, Consulted, Informed).

In order to define it, is needed to

  • Define:
    • key activities/decisions critical to an ideal business outcome
    • all parties involved in the decision/activity
  • Create a representation of current decision chart
  • Analyze the previous document for consistency and completeness
  • Design the future desired RACI chart, consistently with all findings and new organization

Once everything is packed, present the outcomes to executive level and be sure to manage the change appropriately.

Further readings:

  • Competitive Strategy: Techniques for Analyzing Industries and Competitors; Michael E. Porter (Amazon)
  • Designing Organizations: Strategy, Structure, and Process at the Business Unit and Enterprise Levels ; Jay R. Galbraith (Amazon)
  • Designing Dynamic Organizations: A Hands-on Guide for Leaders at All Levels ; Jay Galbraith (Amazon)


(Image by Vince Varga)

Series Navigation<< Redesign an organization – part 3

Author: hotrao

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