Tweet

Designing the Organization

Guest post by: Robert Whipple

Article Overview: Often how an organization is set up determines its effectiveness. When leaders do a reorganization, sometimes they are not thoughtful enough about what they are trying to accomplish. The result is a mess. This article discusses some aspects of organizational design.

Designing the Organization

The classic hierarchy is neither required nor desired in an empowered organization. The old chain of command must give way to a more streamlined structure. Referring to the SWOT analysis, you can identify key gap-closing thrusts required to move the organization forward. Rather than just reorganize everybody into another configuration, consider what you are trying to accomplish.

For example, if a key tactic is to drive quality awareness into all production departments, you might consider eliminating a central quality staff or changing their role in the new organization. If a key strategy is to drive quality compliance so all areas have the same standards, you might strengthen the role of a central quality staff. Form follows function.

Avoid temporary or transitional structures. They are a sign of weak leadership and often lead to confusion. People working in a "temporary" mode are inefficient. Energy is siphoned off as people jockey for position in the final order. You can't be effective in that atmosphere. The leader's role is to push for clarity, fit with the strategic plan, and not wimp out with a mushy transitional structure.

When you change organization structure, the old order will be shaken up. Layers may be eliminated, jobs redesigned. Typically, it is possible to remove about half the layers while simultaneously improving productivity, quality, and delivery. This has a double positive impact, as there are fewer people and each one is more efficient. In addition, many problems associated with communicating down a long organizational chain are reduced. There is less confusion and more clarity of purpose. Although layers are eliminated, there is still need for good people who will perform different functions.

Handled well, this can be an energizing experience, but too often it becomes one of the most traumatic times in the change process. Organizational surgery must be handled delicately because it deals with people's careers. Most managers become defensive if they suspect their level will be eliminated. This natural reaction is a major hurdle, and it has undermined many efforts. Transitions of leadership are particularly sensitive and must be made with care, as I describe later in this chapter. The trick is to continually involve impacted layers, so leaders can make whatever changes are necessary, and yet keep the environment of trust.

A good example occurred in a small, isolated work group in John's Department. He had done some cost benchmarking and needed to make a significant shift to be competitive. He was considering a consolidation of this group with another in a different building. He bounced the idea off the workers and, of course, it was pretty unpopular. Calling all 19 people in the group together, he gave them two weeks to come up with an alternate plan or be consolidated.

John provided a facilitator so the team could meet efficiently to work on the problem. They worked for two weeks while keeping up with production. Finally, they called John and me in at 6 AM one day to report progress. They revealed a plan that, in three months, would improve quality and delivery while reducing the crew size from 19 down to 9 people. They wanted to know if they had our "permission" to do it. I told them it felt like I had just caught the winning touchdown pass in the Management Super Bowl!

They had removed an organization layer and eliminated some straight-day jobs. Everyone had to get additional training and give up some perks they were previously enjoying. In the end, they got down to 10 people rather than 9, but you never saw a more energized and dedicated bunch of people. They owned the change.

One key was that John guaranteed people upfront that we would find good jobs for anybody freed up by the exercise. Without that, the result would have been tepid rather than red-hot. Also, without a trained facilitator to help steer them along, things would have degenerated into a kind of an organizational food fight. This is another excellent use of a consultant: to keep people on task. This example demonstrates the power of another vital tool for change: job redesign. In order to remove 9 people, the group had to change the way all jobs were being done.

Related Articles
  Features of Joomla Web Designing
  Web design for charity
  Colorado’s Affordable Website Designing Services
  Website Customization What can we do
  Six Degrees to Effective Website Designing
  5 Important Flash Web Designing Tips to Enhance the Look of the Website
  Why Should You Hire a PHP Developer For Your Website Development?
  Why Should You Hire a PHP Developer For Your Web Development?
  See The Real Difference With Customized Graphic Designs
  How to Design your First Website
  Finding and Hiring the Best Web Design Services
  Tips for WAHMs- How To Earn From Home
  Managing away from core incompetencies
  Reflect The True Identity Of Your Business Through Customized LOGOS
  Web Designing with Experienced Designers
  Common Mistakes by Graphic Designers in Web Design
  Customized Graphics Website Designs Are Keys To Online Success
  Custom Banners - Put Your Brand In Front Of Audience
  Jobs, Activities & Policies in HRM
  Increasing the Effectiveness of PSD to HTML Conversions

Article Tags: Design, empowerment, leadership, levels, organization, trust



Related Forum Posts
Young Entrepreneur Organization - All You Need To Know - The Young Entrepreneur Organization (YEO) is a global community of entrepreneurs. This non-profit organization aims to make its members successful in their business through networking and training programs. This article tells you all you need to know about the Young Entrepreneur Organization, and the opportunities it makes available to young entrepreneurs from across the world. Young Entrepreneur Organization: Facts. 1) The Young Entrepreneur Organization has 5,000 members in 35 countries across the world. 2) The organization was founded in 1987. Since then, it has helped many aspiring entrepreneurs with training facilities and getting in touch with the right people. 3) The average age of the members of Young Entrepreneur Organization is 34 years. 4) In order to be eligible for the membership of Young Entrepreneur Organization, you need to be under the age of 40; and be the founder or partner in a business that has annual sales of more than $1 million. World Entrepreneurs Organization: A part of the Young Entrepreneur Organization, the World Entrepreneur Organization and takes the message of Young Entrepreneur Organization to many additional places around the world. This organization is especially active in the area of education and training for entrepreneurs. Young Entrepreneur Organization: Objectives. 1) To foster entrepreneurship. 2) To support Young Entrepreneur Organization members by providing them the chance to network and grow. 3) To provide resources to its members so that they can benefit the economy through innovative business ideas. 4) According to Young Entrepreneur Organization, you get to share your story with those who have had similar experiences, and thus gain insight into the best principles of entrepreneurship. Young Entrepreneur Organization: Facilities. At the Young Entrepreneur Organization, you get to meet and share views with like-minded people and fellow entrepreneurs. In order to facilitate a free exchange of ideas and growth for its member, the Young Entrepreneur Organization provides the following facilities to members. 1) Forum: Join the forum of the Young Entrepreneur Organization and start networking with entrepreneurs from across the world. Each forum group has 12 members who come together regularly to share their experiences and discuss issues related to entrepreneurship. 2) Mentor: In conjunction with the World Presidents’ Organization, the Young Entrepreneur Organization guides and counsels young entrepreneurs through a mentor program by the best business leaders. 3) Social Innovation: The Social Innovators Program involves Young Entrepreneur Organization member who wish to do something for about social issues. It helps members become socially aware citizens and gives them the opportunity to do something for their community. 4) Marketplace: The marketplace allows members to post business offers and receive replies from other members. These are just some of the facilities you will get if you become part of the Young Entrepreneur Organization. Others, like meeting prospective clients through trade shows, and special tools to network and meet with the right people are also part of the YEO facilities.
Protect yourself from Hackers - I received this from a newsletter from FXpro that I subscribed to. Please read and apply In the 21st Century internet is widely used for everyday job. Despite the "ease" and free time offered from internet use, one should be aware of the dangers and be prepared to avoid and safeguard him/herself from any attacks his/her computer may accept or even from the "unwanted" e-mails received. Golden Rules of Protection When using the internet make sure you have an antivirus program installed in order to avoid intrusions in your Computer, If you are using wireless internet connection make sure you have your connection locked, Do not save any official documents on your Computer, such as Copy of Passport, ID, Bank account numbers, copy of cards in case your Computer is hacked or even stolen, Keep all access codes/passwords in a safe place, Do not share an e-mail address with any person, Do not reveal any access codes, passwords to any person, If you are using a public Computer, ie in an internet cafe, make sure you log out any internet sites you have visited before leaving and deleting the cookies in order to minimize the risk of someone following your tracks, Regularly change your passwords on your e-mail accounts, or any other account that requires passwords, Be careful of e-mails received. Always check the e-mail address and in case you believe that this does not come from a person, Company, Organization you might be dealing with always send an e-mail to an e-mail address stated on the person's business card, Company's, Organization website requesting them to confirm that the e-mail address on the e-mail received belongs to them, before you reveal any information, Always have in mind that an established Company/Organization never uses an e-mail address such as g-mail, yahoo, hotmail etc thus always be careful when you are receiving such e-mails, even if it appears to be from a Company/Organization you are dealing with, Always remember that a Company or Organization will never require you to send them your login/password/access codes, When using a website that requires an access code, do not allow the browser to remember your passwords
Coming up with a business name - I've always been curious about how people select their business names and would love to hear how you came up with yours. When I first started my company I was selecting between Evan Carmichael & Associates or the Carmichael Organization. The reason was I had read two books by Anthony Robbins and Donald Trump and learned about how they came up with their companies names to make them look bigger than they were when they were first getting started. Robbins chose Anthony Robbins & Associates while Trump chose the Trump Organization. I settled on Evan Carmichael & Associates and later changed it to Evan Carmichael Communications Group when I incorporated on the advice of my lawyer. I agree that it is not the most innovative name out there but my business is about building a brand. I would love to hear how you came up with your company name!
Marketing and PR ideas related to a Credit Organization - Hello Everybody! I would be very grateful if you suggested some PR and Marketing ideas for a Credit Organization which target market is poor public who live in village and haven't any access to the internet. Thanx in advance
Fashion Designers Needed - I am looking for anyone out there with formal and/or informal fashion design education - whether you learned in school or you learned from you mother, I would be interested in talking with you. I am in the process of developing a clothing line - its my biggest dream - and the further that I get into it the more I realize that I can't do this on my own. Designing 4 seasons of clothing is not something that one person can do. I need people that are interested at getting in from the ground up - starting off not making much but building the empire along with me. Thank you for your time and consideration, I hope to work with some of you in the very near future. Best Regards


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Adapting to Technology and the Internet

Common Sense Stress Management

3 Competencies of Leadership

Suggestions

Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.