Ten Key Principles about Organizational Re-Design:

Ten Key Principles about Organizational Re-Design: Organizational structure must follow strategy and support the strategy and corresponding objectives. The higher the degree of uncertainty and change relative to technology and markets, the organization faces, the greater the need for organizational structure flexibility. How you deal with integration in structure is a significant key to success. Structures often fail at the boundaries: great organizations are able to work across boundaries to get the job done quickly and cost effectively. When you want to reduce cycle time or focus on time reduction: Organize around the main sequence; ask what is the main sequence of your value adding activities. Activities that are not critical to the main sequence should be taken off line so they don't slow down the cycle. Once you have isolated the main sequence, use TQM principles to improve the processes. Use small Closed Loop teams with all the skills, people and resources to respond quickly to customer needs. Teams should have decision-making ability and be self-scheduling. This requires a great deal of empowerment and the right culture to be effectively Employees value a job that is designed to be central to the business and has meaning, purpose, dignity, respect, challenge and prospects for advancement. The further decisions commit the company in the future, and the greater the impact on other functions, the higher the decision should be made. Recurrent decisions should always be made at lowest possible level. Build the fewest layers of management and maximize the managers' span of control to minimize the number of units to be integrated. This greatly impacts costs. Split groups tend to force decision making to the top. For example, if sales does not report to marketing, but both report to the general manager, then many natural conflicts about short and long term sales strategy will find their way to the general manager's desk, or go unresolved, rather than be solved at a lower level. If you want speed in key decisions, avoid splitting natural groups. Move variance control as close to the point of variance as possible. This allows for quick response time and encourages accountability. Service staffs should be few and focused on key activities, where the most value is added. They tend to add costs and slow things down if not managed well.   O2ibm Visit this Open Foum