Even as the economic outlook appears to brighten, the fact
remains that many organisations can no longer operate as they had been. A key
feature of this changing landscape is the need for organisations to
restructure.
Here are seven broad restructuring principles to help make
any restructure a successful one.
1. Align structure to strategy
All restructures must align to strategy. This may seem
self-evident, yet a significant number of organisations fail to do so. For
example, if local conditions are a predominant factor, then stress local sales
and marketing functions rather than a centralised behemoth that then tries to
matrix with local elements.
2. Reduce complexity
Simply put, complexity costs. Whether it is a complex
organisational structure, a complex product offering or complex transactional
processes, the added cost of complexity can be a drag on performance.
To mitigate complexity, there are three considerations that
help with organisational design:
Design structure
for strategy before you design for specific personnel. Organisational redesigns
which are a compromise between strategic intent and line management preferences
inevitably add complexity. So, while internal political intrigue is
unavoidable, at least start with a clean and clear design that matches to
strategy.
Avoid making
leadership roles too complex (see principle #5).
Minimise the use
of matrices. They introduce measurement overhead and a lack of clear direction
to the staff.
3. Focus on core activity
Remove noise (inefficiency in processes) and enhance core
before restructuring roles. This means that you will need to know what people
are doing today by obtaining a detailed understanding of tasks by role.
