This document discusses organizational design, including when and why redesign is necessary. It provides 10 factors for success and failure in organizational design. Success comes from having a clear performance focus tied to business results, a strategy that plays to strengths, and compelling reasons for change. Failure can result from unclear goals, overreliance on structural changes without behavioral changes, and lack of leadership commitment to change. Triggers for redesign include changes inside or outside the business, new strategies or goals, and an existing design no longer working effectively.

1. SUCCESS AND FAILURE OF
ORGANIZATION DESIGN
J.JUDITH ESTHER MARTINA
RA1952001020073
MBA-B

2. INTRODUCTION TO ORGANIZATION DESIGN
• Organization Design is a process for shaping the way organizations are structured and run.
• It involves many different aspects of life at work, including team formations, shift patterns,
lines of reporting, decision-making procedures, communication channels, and more.
• Organization Design – and redesign – can help any type of organization to achieve its goals.
Sometimes, a large-scale reorganization is necessary. At other points, more subtle shifts in
structures and systems can ensure that an organization continues to thrive.

3. IMPACT OF ORGANIZATION DESIGN
An organization's design must be right for it to operate efficiently and effectively, and its
structures and systems need to be aligned with its core strategies.There are many potential
benefits to having a design that suits the business and its people, and the environment in
which it operates. For example:
• Increased efficiency.
• Faster and more effective decision making.
• Improved quality of goods and services.
• Higher profits.
• Better customer relations.
• Safer working conditions.
• A happier, healthier and more motivated workforce.
• Greater preparedness for future challenges.

4. SUCCESS AND FAILURE IN ORGANISATIONAL DESIGN
1. Clear performance focus
Success comes from a tight, clear connection between change expectations and business results. Failures come
when an organization is overly focused on activities, skills and culture, or structural changes without creating a
tight linkage to business results.
2. A winning strategy
Projects & organizations succeed when the strategies play to strengths. Failure happens when there is an
overestimation of strength(s) and/or no ability to document concrete ‘wins.’
3. A compelling and urgent case for change
Success happens because there is a widely accepted ‘felt’ need for change. Failure occurs when there is no
demonstrated commitment to the need for change. There is no clear ‘pain’ for remaining in the status quo.

5. SUCCESS AND FAILURE IN ORGANISATIONAL DESIGN
4.Specific change criteria
In successful efforts, the underlying performance criteria and change requirements are clear,
documented and not negotiable. If the ‘rules’ shift or evolve or can be negotiated, failure follows.
5. Distinction between decision-driven and behavior-dependent change
Some change can be ‘decided’ – restructuring, purchases, hires/fires, etc. Other change is ‘behavior-
dependent’ – skills development, new processes, implementing new accountabilities, etc.
Organizations that over ‘decide’ and underinvest in ‘behavior’ changes fail.

6. SUCCESS AND FAILURE IN ORGANISATIONAL DESIGN
6. Structure and systems requirements
Structure and systems (particularly IT) changes may be required for change but are almost always
overused as either the answer or the excuse. Overdependence on structure and systems results in confusion
and sapped energy, and is a great technique for stalling progress.
7. Appropriate skills and resources
Successful change often demands new skills that are being created; requiring some level of transition
resources until new skills are fully functional. Lack of the right talent (skills) and resources against an
opportunity is certain failure; yet organizations consistently repeat this shortcoming.

7. SUCCESS AND FAILURE IN ORGANISATIONAL DESIGN
8. Mobilized and engaged pivotal groups
Organizations that succeed tap critical internal influencers to champion the change and actively engage staff in driving
the change. Getting beyond basic change rhetoric requires a compelling employee value proposition (“what’s in this for
me,”) achievable goals, tools and shared information.
9. Tight integration and alignment of all initiatives
Major change inevitably requires dozens of initiatives (strategy projects, re-engineering efforts, training, leadership
development, communications, technical redesign, new measurements, etc.). The result is a massive integration
challenge. Failure results from locally and globally isolated projects, cross-project conflicts, resource competition, and
confusion as to how projects do or don’t relate.

8. SUCCESS AND FAILURE IN ORGANISATIONAL DESIGN
10. Leader ability and willingness to change
The ceiling on any attempt to change at the project, department or
organization level is set at the leaders’ willingness to embrace and embody
the change. Whatever behaviors individual project or leader team members
cannot adopt, become effectively impossible for the organization.

9. Organizational Design:When and Why?
There are three common "triggers" for Organization Design:
1. Something's changed, either inside or outside of the business.
• Perhaps you've bought some new technology, or a rival has entered your territory. Maybe an
important piece of legislation affecting your business has changed.
• Some factors are exciting, some are worrying, but they all require a response – and that likely
means some alterations to the way you operate.

10. Organizational Design: When and Why?
2. You've set new strategies or goals.
• An organization might take the strategic decision to approach its work in a different way for
any number of reasons. It might also change the ways it measures success.
• For example, a publishing company might decide to produce less in print, offer more free
content online, and aim to make most of its money from advertising. In which case, it would
have to set new goals for website engagement and advertising revenue, and it would need to
implement an Organization Design process to pursue this new strategy.

11. Organizational Design: When and Why?
3. The current design no longer works.
• Many aspects of change affecting an organization are gradual. But, in time, a "tipping point"
is reached.
• Perhaps you've increased your people's flexible working options, but problems are beginning
to show: absence is up, deadlines are being missed, and there's a growing sense of inequality
across the business. Enough's enough: your organizational design needs to change.

12. THANK YOU