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Organization

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Organization Design

We help clients design organizations to reduce costs, drive growth, and strengthen both short-term performance and long-term organizational health.

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We go beyond “lines and boxes” to define decision rights, accountabilities, internal governance, and linkages. Our design solutions help clients manage complexity and global scale to ensure sustained performance.

Specifically, we work closely with our clients to:

Bring a rigorous approach to organization design

We assess the strengths and weaknesses of the current organization and design a robust new structure. In the current-state assessment, our diagnostic tools highlight areas where the organization presents challenges, which might lie in its structure, linkages, or culture, and help define criteria to guide the design process. In the design itself, our design tests help clients make choices on critical questions such as the optimal business-unit structure; the role of the corporate center and shared services; and capabilities needed for pivotal roles.

Link organization to strategy and realize value

We make sure the design focuses management attention on the strategic priorities and critical operations of each business unit, region, or product—be it international expansion, cost-cutting, or growth through acquisitions. Once the design is finalized, our unique implementation approach helps our clients quickly realize the economic value determined by the redesign.

Focus head offices on value creation

Many CEOs are concerned about waste and redundant hierarchy, particularly in head offices. Our approach identifies an explicit, value-adding “mandate” for the corporate center—for example, co-ordinating key functions or driving specific strategic initiatives.

Drive accountability

By careful design of performance-management processes, we make sure all units have clear performance measures. Our accountability tools and decision-making frameworks help identify accountabilities for cross-unit processes.

Enable enterprise-wide collaboration

Achieving large-scale collaboration across the entire enterprise—on customer solutions, product development, innovation, and the like—can unlock tremendous value. Using our Social Network Analysis tool, we go beyond organization charts to reveal and tap into the informal communities through which the organization shares information and knowledge. We help clients understand the value collaboration can bring and the mechanisms to enable it.

Deal with complexity

Effective organization design must remove complexity that creates unnecessary cost and organizational friction, and channel what’s left to employees who are equipped to handle it. Using our proprietary complexity survey, we pinpoint issues such as a lack of role clarity or poor processes that could hinder productivity.

Examples of our work

  • For a power retailer seeking major revenue growth, a new organizational design supported by strategy transformed the sales model, eliminating non-value-added activities, and strengthening top management’s role as “super coaches” to the sales team. Profits grew by 25 percent in a year.
  • In a global consumer goods company, a new CEO reduced the corporate center by 50 percent, redesigned key HR and finance processes for efficiency, and consolidated fragmented supply-chain functions. Savings totaled $500 million over 3 years.
  • A global consumer goods manufacturer eliminated complexity in several regions and functions, halving the time it needed to make decisions in critical processes. This helped it bring products to market faster in response to changing customer needs.

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