Organisational Design's Importance

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The Meaning, Purpose and Importance of Organisational Design

Owning a profitable business does not guarantee ongoing success, but constantly adjusting its organisational design will ensure it remains fit for purpose. Business, like life, is not static but is continuously exposed to external forces that require companies and living creatures to adapt or deal with the consequences.

Until recently, factors influencing business practices were equally disruptive but generally less frequent than today. Innovations like steam power, motor vehicles and shipping containers offered a welcome boost for a company capable of embracing change and allowed more time to prepare new business strategies.

By contrast, during the last five decades, digital technologies and market forces have combined with global events to precipitate an era of unprecedented change that has impacted almost every aspect of business and life in general. One could have predicted that the Internet would become the new shopping and banking centre, but who could have guessed that a global pandemic would result in employees working from home or the accelerating transition to a cashless society? These are just some of the many developments that have created a need for company restructuring.

The fundamentals of organisational design

The primary aim of this process is to ensure that the structure of a company is fully aligned with its stated objectives. Achieving this alignment offers the means to improve efficiency in all departments and maximise overall performance, and involves six steps as follows:

Understand what’s driving the need for change.
Review your existing business processes, roles, activities and resources to identify those requiring change.
Design and test alternative models.
Develop a transition plan.
Implement the planned changes and monitor their effect.
Make any necessary adjustments to optimise the changes.

Regardless of how valid your proposed changes may be, their effectiveness will ultimately depend on the people assigned to apply them. Is everyone involved fully conversant with the company’s goals and other aspirations? Have all individuals been assigned the tasks for which they are best suited? Do they have all the required skills for success, or might they need additional training? All these vital factors will be fully addressed should you decide to retain the experienced business specialists at Orgro to plan and manage your company restructuring.

Why organisational design is so important

Perhaps the best way to highlight the importance of adapting to change is to reflect on the consequences of the pandemic. Many South African businesses were too inflexible to adjust to remote working and e-commerce. Some lost much of their hard-earned market share, while others were forced to close their doors. However, some saw it as an opportunity to transform their startups into thriving concerns.

The business world is dynamic, and companies will continue encountering new obstacles that could impede their growth. For example, climate change has seen customers demanding more sustainable materials and processes. Artificial intelligence is set to revolutionise everything from manufacturing and construction to medical research and computing. Those who ignore these forces or cannot leverage them for gain are doomed to be runners-up in the business stakes or, like the dinosaurs, could face extinction.

Fortunately, it’s not too late. Contact the organisational design specialists at Orgro to secure the future of your business by transforming threats into opportunities.