Would you buy a badly designed mobile phone or a badly designed piece of furniture or a badly designed car? Product design is critical to the success of a product in a fiercely competitive market. Companies invest millions of dollars in getting their product design right. Same is the case with service design which is undergoing huge change following the current pandemic, as you would know.
A badly designed organization dissipates energy and instead of running on fifth gear on a highway, it runs at lower gear, gets over-heated, undermining its full potential. While a wrongly designed organization creates huge inefficiencies, an existing organizational design can get outdated quickly without anybody noticing it. Wrong organizational design does not create much noise in the market and so goes largely unnoticed. But it creates rumblings within. It is a slow and silent killer.
A well-designed organization runs like a well-oiled machine. Motivation level, energy level, productivity, cost efficiency, and market effectiveness can go up dramatically.
My experience tells me that high-quality organizational design requires understanding the culture within, the stage of development of the enterprise, the strengths and weaknesses within, and opportunities and threats outside. It requires focused attention, confidentiality, business wisdom, an eye for detail, objectivity, often tough decisions, and astute change management. It is both a science and an art.
Periodic organizational design review should be a high priority for CEOs and should be on the Board agenda. Particularly in the current challenging environment, are CEOs paying enough attention to their organizational design?
Feel free to reach out to me for any further query: https://eumatterconsulting.com/contact-us/