Beyond Lines & Boxes – Organizations Restructuring
There is no denying that leaders are constantly facing the challenges of adaptation and agility to cope with the different dynamics in today's business world. Many leaders see restructuring as a potential solution that will drive dramatic organizational agility. However, it is crucial for business leaders to recognize that restructuring isn't a one-size-fits-all remedy and that a deeper exploration into various facets of the organization is essential before making such a decision.
?
In our consulting approach, we ensure having clear and deep conversations with our clients on the “Why” of restructuring as that helps us in shaping our understanding on the overall actual need.
?
In general, our “Diagnose Phase” is focused around the 6 enablers of the Organizational Effectiveness where Structure is only one of the 6 enablers. This helps both us and the clients look into the clients’ needs holistically and improve the ROI of the change by addressing what needs to be addressed. So, what are the 6-enablers of Organizational Effectiveness? Let’s dive in!
?
1. Strategy: Aligning for Success
The Strategy is the foundation of any successful business. Before heading towards restructuring, leaders must evaluate whether the current strategy aligns with the company's goals and the evolving market demands. Restructuring without a clear strategy in place might be an ineffective exercise, as it could lead to a misalignment of resources and efforts.
?
2. Culture: The Unseen Driver of Success
Organizational Culture is often underestimated but plays a pivotal role in determining an organization's success. Leaders must assess the existing culture and its compatibility with the desired outcomes. A shift in structure won't automatically address cultural issues, and a misalignment can undermine the effectiveness of any restructuring effort.
?
3. Leadership: Guiding the Transformation
领英推荐
Leadership is not just about titles; it's about the ability to guide a team through change. Before restructuring, leaders must evaluate whether the current leadership team possesses the necessary skills and mindset to navigate the organization through transformation. A change in structure won't be effective without the right leadership in place.
?
4. Structure: Beyond the Surface
While restructuring often involves changes in organizational charts and reporting lines, leaders should consider whether the proposed structural changes address the root causes of organizational challenges. Making surface-level changes might give the impression that things are improving temporarily, but the real problems could still be there underneath.
?
5. Process: Streamlining for Efficiency
Examining existing processes is crucial before restructuring. Leaders should identify bottlenecks, redundancies, and inefficiencies that may hinder the success of the new structure. Restructuring without process optimization could lead to the same challenges resurfacing in the future.
?
6. Capability of Staff: Empowering Your Greatest Asset
The success of any organization lies in the capability of its workforce. Leaders must assess whether employees possess the skills and knowledge required for the envisioned structure. Investing in training and development may be more beneficial than simply reshuffling roles.
?
In conclusion, business leaders must approach restructuring with a holistic perspective. While changes in structure may be necessary, they should be part of a comprehensive strategy that considers the organization's culture, leadership, processes, and the capabilities of its people. Mainly thorough examination of these elements to ensure that restructuring is not merely a cosmetic fix but a strategic initiative that addresses the root causes of challenges, preparing the organization toward sustained success. Leaders who take the time to assess these critical factors are better positioned to make informed decisions that lead to lasting positive change.
People Manager at SOHAR Port and Freezone
1 年Great article ghassan Would like to add as well to the points: Activating the enabler to re-structuring will require an incredible communication plan
Head of Maintenance
1 年Well done ??
People & Culture Business Partner | CIPD Certified | OPAL HR Practitioner |
1 年Well done Ghassan ????????
Organisational Psychologist. Strategy and Leadership. DistFHRNZ, FNZPsS
1 年Great synopsis Ghassan. Nice work beautifully presented. On the culture piece, I think it is helpful to work with the culture and process factors in concert with each other. We should be wary of the idea that culture is a soft intangible factor, the values poster by the water cooler. Culture is intimately connected with trust and the quickest way to find our organization's trust parameters is to look into the often casually accepted business processes, policies and rules that govern management and staff behaviour on budgets, delegations, authorities and permissions. Who can spend money? Who can recruit? Who can talk to the media, have a credit card, and how many signatures I need to do or have these things? Structure and process determines who is accountable and how hard or easy it is to get things done. Do our processes encourage me to take short cuts, create work arounds and so on? We should engage with Finance, HR, and Procurement as co-authors of the culture.
A transformational leader who drives impactful organizational change to achieve sustainable success.
1 年Thanks for sharing; I would add to the diagnosis also the maturity level of the technology; it can have a significant impact on any company structure and how the business processes will be managed