What makes it so important to design the organisation to support business strategy
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In the current business environment, organisations are faced with new challenges, new innovations, and uncertainty on a constant basis making their adaptability and effectiveness ever more important. Organisational Design can contribute to this by unleashing the organisation’s potential and ensuring that the structure and people are fully equipped to keep up with the pace of change. Show
A business’ Organisational Design should be aligned to its business strategy and the wider operating environment. Therefore it is not static, but rather it is in constant flux as the business adapts to new challenges and implements new business models. It is in a continuous process of strategic nipping and tucking to ensure organisational resources are allocated most appropriately and most effectively. Organisational Design is not simply about revising an organisational chart, moving reporting lines, adjusting spans of controls or announcing a new business unit. It is a comprehensive exercise that when carried out effectively, enables organisations to leverage their strengths in terms of its capabilities, structure, processes and talent. We find that business leaders often wish to carry this out so as to satisfy specific business objectives such as:Supporting Strategic RequirementsA drive for Organisational Design can be caused by a fundamental shift in business strategy, change in value proposition or product positioning, new markets, new customers, or as a result of a merger or acquisition. Achieving Performance ImprovementThis could be a result of process re-engineering or redesign, ERP implementation,
performance or supply change management, strategic technology implementation, organisational performance, or a drive to make processes more lean. Reaching Cost Reduction TargetsAn organisation may be motivated to undergo an Organisation Design review because of required cost reduction exercises such as downsizing, rightsizing, streamlining or outsourcing. Reprint No. 00318 Author profiles:
What is the importance of business strategy in the organization?When leaders formulate a strategy, it helps them understand their strengths and weaknesses. This way, they can capitalize on what they are good at and improve on their weaker aspects. It ensures that every aspect of a business is planned. This means more efficiency and better and more effective plans.
Why designing the organization is important?Good organizational structure and design helps improve communication, increase productivity, and inspire innovation. It creates an environment where people can work effectively.
How does organizational design help the organization?Organisational design is the process of aligning the structure of an organisation with its objectives, with the ultimate aim of improving efficiency and effectiveness. Work can be triggered by the need to improve service delivery or specific business processes, or as a result of a new mandate.
What is the 5 reasons why business strategies important?The Importance of Strategy. Provides Direction and Action Plans. It establishes in a clear, concise and strategically sound way. ... . Prioritizes and Aligns Activities. ... . Defines Accountabilities. ... . Enhances Communication and Commitment. ... . Provides a Framework for Ongoing Decision Making.. |
