Practical Organization Design

Think of when you drive to job every morning. How can this activity be done in a better way? Your possibilities to improve is heavily limited. A faster car will not help. GPS navigation equipment will not help. Neither will a course in safe driving substantially improve results. To drive your car in the rush hours is a complex activity with lot of stakeholders, prerequisites and constrains. Substantial improvements in complex systems can only be made with a system approach, relevant knowledge and with the authority to make system changes.

 

We can easily transform the example above to how it works in most of today’s organizations. Many companies or non-profit organizations are stuck in old time ways of working. Individuals in the organization may do changes in small areas they can impact, but these changes are often too limited to make a difference to overall performance. Top management have most often understood and accepted the need to improve performance. But they may be limited by late notice, i.e. there is a need for fast change. This makes it hard to do a structured analysis and thought through design of the organization. The result is that managers will continue to use the old time method; “Improve by changing Organization Chart”.

Any modern organization, small or large, needs Organization Designers. People with the knowledge, tools and experience to do a design of the complex system that any organization is. Understand what efficiency and effectivity means for the organization. Identify how to measure performance, improve value creation chains, define roles and responsibilities for operations and establish controls. Finally will Organization Designers do evaluations with the purpose to suggest further improvements to management.

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