Organisational Design Must Adapt to the Changing Business Environment

Changing consumer demands, regulations, and technologies require forsaking traditional business models and paying closer attention to organisational design. The business world is no longer the stable and static environment it once was. Instead, it is now a dynamic one in which, paradoxically, the only constant is change. That said, change can be good news for a business, providing it has the will, the ability and a plan to adapt.

Several events have highlighted the result of failing to deal with the challenges that change invariably presents. For instance, hundreds of businesses in South Africa were forced into closure or bankruptcy due to load shedding, while those who embraced alternative power sources survived and even grew.

In the UK, shopping malls are full of empty premises to let. Many are the consequence of their prior owners’ inability to adapt to the lockdown. Companies that have been household names for generations are now merely fond memories of times past.

Developing an Organisational Design Strategy

Change is a journey for which the company must define the route and destination and create a roadmap detailing each step of the way. While individual companies differ in their needs, their DNA, and the organisational changes they will require, the following steps apply to all:

• Define objectives: The first step is to clarify the purpose of your journey. To proceed in the same direction, all stakeholders must know and understand the company’s mission, values, vision, and strategic goals.

• Perform an environmental analysis: Review the company’s operating environment, focusing on external factors like market trends, regulatory changes and emerging technologies. A SWOT analysis will help evaluate the internal environment.

• Clarify roles and responsibilities: Ensure everyone’s tasks are clearly defined. Well-defined boundaries and expectations will help prevent confusion, wasteful duplication and conflict.

• Assess current organisational design: Examine existing structures to identify bottlenecks, inefficient practices, and areas that require improvement, such as reporting relationships, departmentalisation, and hierarchy.

• Optimise existing structures: Reshape the organisational structure based on the environmental analysis and strategic goals. Consider creating flatter hierarchies and cross-functional teams to improve collaboration and enhance flexibility.

• Streamline workflow: Conduct a review of current processes and workflows. Eliminating unnecessary activities, minimising bureaucracy and, where possible, automating repetitive tasks will streamline response times and productivity.

• Encourage innovation: Cultivating a culture that prizes and fosters creativity, experimentation, sharing knowledge, initiative, and a willingness to take risks is the most effective way to produce innovators and optimise organisational design.

• Empower employees: To get the best from employees, they must be given the necessary resources and support and sufficient autonomy. Managers and team leaders help by delegating authority and decision-making, which, in turn, will also promote accountability, a sense of ownership and staff loyalty.

• Manage performance: Regular feedback ensures that individual and team goals remain aligned with the company’s goals while developmental opportunities, recognition, incentives, and rewards encourage their pursuit.

Managing Organisational Design

Implementing these steps, monitoring their outcomes and making any necessary amendments are tasks best assigned to an organisational development specialist. We encourage you to contact Orgro, an organisation with more than 40 years of experience in solving business problems. Let’s discuss your needs and concerns, and together, we will formulate a plan to optimise your company structure, productivity and growth.