Organizational Design

ORGANIZATIONAL DESIGN
Structure, Systems and Information

Organizational design assesses the internal structure and systems of the family business, its organization (including staffing structure, internal control systems and the condition and use of information) and its unique skills and abilities.

"The organizational structure for many family businesses is like an old country house where new rooms were simply added on to the house as the family grew," observes top family business expert Don Schwerzler.

"Over the years that old house served to accomodate the needs of the family - but now has become 'functionally obsolete'."

"Likewise, a family business organizational structure that has grown like that country house, the organization can become cumbersome and inefficient," according to Schwerzler. He has been studying and advising family business entrepreneurs for more than 40 years, and is the founder of the Family Business Institute.

Organizational Design - Basic Structure

Basic Structure evaluates whether or not a company's organizational design is conducive to achieving it's strategic intent. It evaluates an organization's structure and hierarchy in relation to its strategic plan. It also takes into consideration whether a company's structure is politically or strategically driven.

  • Structure Criteria for Organizational Design
    • Structure is conducive to strategy
    • Structure is based on strategic need, not "in-house" politics
    • Structure facilitates a "value chain" approach
    • Promotes collaboration between departments
  • Structure Evolution
    • Structure adapts quickly to change
    • Supporting innovation and change
    • Willing to reorganize, when necessary


Core Competencies

Organizational design's Core Competencies are the skills, knowledge and special abilities a company possesses that set it apart from other organizations. By effectively bundling these skills, knowledge and special abilities, a company can create a competitive advantage, enhance value, and expand their market position.

  • Identifying Core Competencies
    • Understanding a company's distinctive skills and capabilities
    • Clearly articulating the core competencies
    • Identifying how core competencies:
      • Create customer value
      • Establish differentiation
      • Expand product or service offerings
  • Leveraging Core Competencies
    • Expanding customer value proposition
    • Increasing competitive differentiation
    • Leveraging product or service offerings

CHAOS BUSTERS - 160 Key Business Questions

will help you focus on core competencies and other aspects of organization design.

Information, Systems and Technology Component

Information, Systems and Technology is the organizational design element that takes into account the quality of an organization's overall communications and the effective alignment of technology with strategic intent. This component considers whether or not an organization has developed the means to obtain targeted market information, align internal communications systems to research and implement innovative technologies.

  • Organization Communication
    • Communicating the strategic plan throughout the company
    • Communicating key objectives to employees
    • Announcing key performance metrics
    • Communicating progress against key objectives
  • Targeted Information
    • Providing managers with the information they need to make informed decisions
    • Continually updating environmental factors that affect business
    • Using a company information system to regularly disseminate important market data
    • Providing management with timely updates regarding performance in their areas of responsibility
    • Using high-quality information to make rapid decisions
  • Enterprising Systems
    • Facilitating the flow of information across departmental lines to maximize performance and effective decision-making
    • Sharing information across departmental lines through an integrated system
    • Defining the specific components of a cross-functional information system
  • Applied Technology in Organizational Design
    • Ensuring that company technology needs are fully met
    • Strong commitment to acquiring improved technologies
    • Seeking to discover new or improved technologies
    • Effectively monitoring the role of technology within industry


Organizational Efficiency Component

Organizational design's Organizational Efficiency deals with establishing the necessary policies and procedures to ensure an appropriate level of discipline within the organization. It addresses clarity of roles and responsibilities, organization interdependencies, and management of outsourced relationships.

  • Balanced Oversight and Direction
    • Providing written policies and procedures to all managers and employees
    • Monitoring compliance with policies
    • Keeping procedures/ manuals brief and to the point
    • Minimal "red tape"
  • Synthesized Roles and Responsibilities
    • Employees understand how their roles relate to strategic objectives
    • Clearly defining management roles
    • Eliminating redundancy in roles or responsibilities
  • Managed Outsource and Strategic Alliances
    • Integrating outsourcing into the strategic plan, where appropriate
    • Closely monitoring outsourced activities
    • Managing strategic partner activities
    • Enduring that strategic partner performance is consistent with internal standards


"WITHOUT A GOOD QUESTION A GOOD ANSWER HAS NO PLACE TO GO..."

Do you have questions about your Family Business?
Don't have the answers - don't know who to ask?
It's FREE to
ASK THE EXPERT

Contact the

FAMILY BUSINESS HELP DESK

Reply within 48 hours.


http://www.family-business-experts.com/cms-form.html




Chaos Busters - The Management Guide

Identifies 160 Key Business Questions

  • 160 Key Business Questions will stimulate creativity and innovation for your entire management team!


  • 160 Key Business Questions are the keys to unlock the hidden potential of your organization!


  • 160 Key Business Questions will save you time and make your work more effective!


  • 160 Key Business Questions is a Multi-purpose tool with unlimited applications!

http://www.family-business-experts.com/chaos-busters.html


How Well Organized is YOUR Organization?

Your Business Will Succeed...

If...

You have The Roadmap for Success

That's What

The Practitioner's Guide for Organizing an Organization
Is All About

  • PGOO shows how to identify the most pressing problems to solve
  • PGOO introduces the ODS-OL (Organizational Diagnostic Survey –Online) - an electronic assessment tool that is highly effective, easy to use, systematic and data-based
  • PGOO explains how to produce a better-organized organization
http://www.family-business-experts.com/PGOO.html


Family Business Experts Understands
Family Values and Business Systems

We have diagnostic tools to help you get a handle on your organizational design in hours, not weeks





Return from Organizational Design to
SWOT Analysis