I frequently engage in discussions with clients regarding Organisational Design, covering its implementation and the value it brings. Here are fundamental principles to kick-start your understanding and equip you with the knowledge necessary for proactive dialogues with senior executives well before any recruitment efforts commence. 
 
At the heart of it lies the importance of having the right individuals, possessing the appropriate skills, occupying suitable positions, at the right hierarchical levels, within the appropriate segments of the business. While this may seem obvious, achieving it is often challenging.
 
The first step entails clarity regarding the business plans and requirements, comprehending what adjustments are necessary to support those objectives. Ask the following question: is the goal to sustainable in an ever changing environment, or rapid expansion into new markets for future profitability or potential sale?
 
Next, it's imperative to gain insights and assess how effective the current organisational framework is. This involves investigating any departments facing difficulties in meeting their goals. Questions to explore include identifying barriers, scrutinising roles that are challenging to fill, evaluating if there's attrition of key talent, and assessing performance and productivity.
 
The third step involves comparing the existing structure against the aspirational one. For instance, if the focus is on innovation, roles geared towards future-oriented tasks, research, solution development, and strategic planning are pivotal. Conversely, if the emphasis is on sustainability, too much importance placed on innovation may lead to perpetual change and hinder productivity and quality of delivery.
 
The final step involves comprehensive analysis to validate anecdotal evidence. Establishing the number of roles at each level across the organisation, aided by an internal levelling system, provides valuable insights. Comparing the current Organisational Design (OD) with the desired shape illuminates any misalignment.
 
At Innecto, we examine the distribution of roles across the organisation, within functions, countries, and departments. By comparing the current and aspirational OD shapes, discrepancies become evident, such as a triangle shape indicating an operational structure and a diamond shape highlighting a concentration of middle band professionals.
 
While job evaluation is traditionally associated with operational processes, our online JE system Evaluate™, offers insights essential for OD assessment. This forward-thinking, business-focused approach allows HR leaders to proactively plan for rapid change of direction and growth and provide clarity around requirements of organisational design – both current and aspirational.

If you need help with your Organisational Design, get in touch: 020 3457 0894

« Back to Insights