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1. Managing organization
re-design processes
Three key requirements
Nicolay Worren
www.organizationdesign.net

2. Organization (re)design is an element in
- or prerequisite for - many types of organizational change
• Starting point
– Strategic reorientation
– Merger or acquisition
– Change /improvement program
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© Worren Consulting 2012

3. Re-design processes are demanding
• Challenges
– Uncertainty
– Different stakeholders
– Direct impact on individuals’ careers
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© Worren Consulting 2012

4. A systematic approach is needed
“We need to
reorganize”
PLAN DESIGN IMPLEMENT
• Phases, milestones
• How to collect data
• How to develop alternative solutions
• How to make decisions
• Who to involve
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© Worren Consulting 2012

5. What an effective design process needs to provide
Potentially negative Requirements:
outcome:
Misalignment Create alignment A
(with mission and strategy)
Internally
Create coherency C
inconsistent models
Lack of trust Create trust T
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© Worren Consulting 2012

6. Investing time and effort in early phase pays off later
New organization announced
Planning Design Implementation
“Time to value”
Planning Design Implementation
“Time to value”
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© Worren Consulting 2012

7. Creating alignment with A
mission and strategy
C
T
• Try to articulate organizational implications
– Required “capabilities”
– My preferred approach: Define “functional requirements”
• Break down the mission into “sub missions” (mandates) for every major unit
• What outcomes does the organization need to deliver, for whom?
• Define design criteria – how to evaluate alternatives against each other
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© Worren Consulting 2012

8. A
Creating coherency
C
T
Central coordination Different organizational dimensions
Managing
Director
Managing
Director
Managing
Product
Engineering Product Director
Marketing Sales
& Innovation Development
Management
Product
Engineering Product
Marketing Sales
& Innovation Development
Management
Product
Engineering Product
Marketing Sales
& Innovation Operating model
Development
Management
Mandates/missions and different levels
Governance model
Resource model
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© Worren Consulting 2012

9. A
Creating trust
C
T
Gathering data “Selling the change”
Developing
solutions
Planning Design Implementation
Compliance
“Fair
Trust
process”
Valid
information
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© Worren Consulting 2012

10. Balancing top down direction with extensive involvement
PLAN DESIGN IMPLEMENT
Set the Document Design Develop Transition
agenda org criteria model Select Detail plan Implement Evaluate
Leader
Mngtm
123 456 789
team
Others
Project
team
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© Worren Consulting 2012

11. More on principles, frameworks, tools
www.amazon.co.uk
www.organizationdesign.net
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© Worren Consulting 2012