Many organizations grow, evolve, and change so quickly and in ways that require immediate resources which often leads to reactive hiring. Over time, this practice can create an organizational structure that does not fit the needs of the organization. Some notable signs that an organizational structure is not serving the holistic needs include:

  • High turnover and difficulty hiring for critical roles
  • Lack of clarity in roles leading to dropped items or duplicate efforts
  • Conflicts between employees and subordinates

The organizational redesign process can have a varied approach based on the organization, level of alignment and future state needs, but core process involves the following steps:

Launch – Communicate the intent to the team and designate key leaders as champions of the project, tasked with corralling “buy-in” with the goal of obtaining participation. Proactive communication and timing are critically important in getting the team onboard.

Discover – Take a step back to understand the current situation at a detailed enough level to understand the workload of each function and the holistic organization, this step can include:

  • Conducting discovery sessions and review existing relevant documentation
  • Developing a true organizational chart to depict how the organization actually functions
  • Documenting skills and critical institutional knowledge of existing staff

Roadmap – Understanding the current state will enable the organization to define the ideal state of the organization to align with the organizations mission and critical functions, tasks include:

  • Documenting key skill gaps and opportunities for potential improvement
  • Mapping each key to function to a defined owner with the ultimate goal of creating process oriented future state organizational chart
  • Developing a plan and timeline to roll-out the new organizational structure

 Implement – The key steps to get the optimal design in place include:

  • Developing position descriptions for key roles, position titles based on responsibilities and experience, and reporting relationships
  • Gathering market compensation data for the defined positions that reflected the organization’s overall compensation strategy
  • Communicating the phased approach including backfill of positions and a training plan to develop the next generation or workers and managers
  • Transitioning to new operational model and providing a clear training plan
  • Implementing succession planning parameters for major executive and technical/specialty position

Optimize – Once the organizational redesign is complete in aligning human capital resources to maximize fulfillment of strategic goals and vision, there is an ongoing process ensure the constantly evolving organization maintains alignment. Many organizations find success in implementing balanced scorecard to measure and reward performance as well as allowing the leadership to continually monitor and adjust the organizational structure.

 

To learn more about how RSM can assist you with human capital consulting needs, contact RSM’s consulting professionals at 800.274.3978 or email us.