Competing through organisational design

Organisational design (OD) equates to the operating model of an organisation, which expresses an organisation’s delivery logic. OD is a critical leadership task in building a fit-for-purpose organisation. The ability to compete rests in its design, its architecture, its value-add to the customers and clients and by its performance. OD has become a burning platform, and will remain so for the foreseeable future.

It is widely recognised that the way an organisation is designed has a profound effect not only on an organisation’s ability to execute its strategy successfully, but also on optimal resource deployment and utilisation. The efficiency of its mode of working, the conduciveness of its culture and dynamics, consequently, on its overall performance and ultimately on the organisation’s continued sustainability. One can indeed compete by design.

OD can only be ignored at the peril of the continued effectiveness and efficiency of the organisation. For example, a study by the Bain & Company in eight industries and 21 countries found that companies with top quartile operating models — clear, robust, fit-for-purpose designs — had a five-year compound average revenue growth that was 120 basis points faster, together with operating margins that were 260 basis points higher, than for those in the bottom quartile.

A fit-for-purpose OD capacitates an organisation to compete effectively through its design, because it serves to ensure a best fit between the organisation and its context, now and going into the future.

Additionally, an appropriate OD can help an organisation to:

• mobilise to meet market/customer needs in a value-adding manner and more responsive way, thus creating memorable customer and employee experiences.
  
• translate strategic intent and business goals into focused work units, day-to-day workflows and modes of working, and the requisite levels of work with well-defined work roles and clear distribution of responsibilities.
  
• integrate activities seamlessly between teams and individuals, resulting in an integrated strategic thrust and response by the organisation.
  
• mould the identity, leadership, culture and performance into a coherent whole.
  
• create greater economies of scale and cost efficiencies.
  
• enable optimal resource allocation and deployment.
  
• build, enhance and protect in-depth core competencies putting the business on a sustainable strategic trajectory.

Should you wish for us to provide you with further information on the Designing the Organisation of the Future, for the Future course, alternative Human Capital Management short-courses, or even a bit of insight into our Research and Advisory services, contact our management team for assistance.