Strategy 5.0? - Defining the Appropriate Organization Design for a Digital Future

Strategy 5.0? is the strategic planning approach Group50? Consulting uses with its clients who want an organizational design that will:

1.??????Realize the potential of Industry 5.0

2.??????Optimize the business at the intersection of people, process, technology and cobotics

3.??????Excel at operational innovation

4.??????Maintain corporate entrepreneurship

5.??????Create a scalable and sustainable future for the company

To achieve those objectives, everything, including organizational design must be reconsidered. ?The diagram shows how people, process and cobotics are built upon an information backbone and are fully directed by that backbone.?There is nothing we do today, either personally or in business that isn’t influenced by technology.?Technology influences our thinking, guides our decision making, actuates business processes, manages our cash flows, predicts future outcomes and everything else in our lives. Technology will continue to permeate our lives, our businesses and everything else we do. AI will accelerate this result, like it or not.

Given that, our view in Strategy 5.0? is that organizations should be designed on top of the technology base implying that the functional organization as we have known it is no longer an appropriate organizational structure.?Technology is no longer a tool for each function to use as they see fit, it is the base on which the company operates, and each functional discipline must learn to master the technology base. In the diagram below, we have defined three business process groups:

1.??????Market Facing: The set of activities that is responsible for leading the “Where to Play” part of a company’s strategic plan with ownership of the primary interfaces with customers

2.??????Value Added: The set of activities that is responsible for all value add to the company’s products and services. This group plays a major role in realizing the company’s “How to Win” strategies

3.??????Technology: The collection of software and hardware that interconnects and drives the entire business and all stakeholders from raw materials to product end of life.

In order to optimize the intersection of People, Process, Technology and Cobotics, the organization structure needs to be focused on those three process groups with a senior leader for each one:

1.??????Chief Revenue Officer

2.??????Chief Value Add Officer

3.??????Chief Technology Officer

We should be able to agree that each of these process groups have unique requirements for the people in them, including finance, HR, engineering,?quality, management and governance. Each discipline will have a unique set of skills maps or learning maps.?So, while there still may be leaders for finance and HR at the senior lever, the day-to-day resources will report to their respective process groups.?The senior level leaders will be responsible for policy and governance at the corporate level and provide guidance to their functional peers.

This organizational approach will seem radical to the 76% of companies who don’t have an Industry 5.0 strategy, so they will take longer to get there. It will open the eyes of the 80% of companies whose digital transformations have failed. Group50?’s Business Hierarchy of Needs? provides the change management framework to manage the movement from a company’s current state to its future state. Strategy 5.0? and the supporting tools we have created have been designed to help them prepare for a fully digital future in their company in inside their customer base.

If you want to learn more, go to Strategic Planning 5.0?, purchase Jim Gitney's bestselling book: "Strategy Realized - The Business Hierarchy of Needs?" or give us a call at (909) 949-9083, or request more information here.

About the Author:??Jim Gitney, CEO and Founder, started Group50??Consulting in 2004 with the focus of working with companies to significantly improve their performance by leveraging?people,?process?and?technology as part of Strategy 5.0?.?In 2013, he created Group50’s?Business Hierarchy of Needs? change management framework, a fundamental strategic planning and strategic execution guide to senior leadership teams, and was granted a trademark in 2015. This framework eliminates the existence of Anti-Strategy.

Jim has held C-suite and Board positions in large and small companies (GE, Black & Decker, Sunbeam, Rain Bird, Pankl Aerospace and others) both privately and publicly held. He is considered a subject matter expert in strategic planning, strategic execution, operations, supply chain and restructuring.?He has taken best practices from around the world, worked closely with clients and other Group50? consultants to create Group50's full suite of strategic planning and implementation tools.