What are the driving forces behind why organizations need to be able to remodel their workforce? In this presentation, you can review some key market trends on organizational design and modelling. See how and why companies use org modelling software to re-design and re-model their organization.
The first topic we will cover today is to discuss the driving forces behind why organizations need to be able to remodel their workforce, looking at some key market trends.
Let’s start with what I think is a very relevant quotation.“…Although efficiency, effectiveness, and compliance are still important transformation goals, they now represent the bare minimum that HR is expected to deliver. What businesses really need are HR capabilities that do not just support the business strategy, but enable it — making it possible for the business to design and execute strategic moves that capitalize on HR's capabilities, rather than being limited by them.”Deloitte Consulting LLP
Now lets look at some of the factors that drive company reorganization exercises:#1) Growth: Top CEOs list growth as THE driving factor behind reorganizations. Tailoring an org structure to support growth strategies is a necessary requirement.#2) Emerging markets, M&A’s, and rapid innovation also drive reoganization requirements#3) Org agility: ability to adapt to market conditions#4) Need to manage change in a standardized, repeatable fashion#5) Cannot handle reorgs as one-off events
“… a company unwilling to ever reorganize is probably pretty calcified in terms of how it responds to the marketplace... Today any company can find itself driven out of business if it isn't adaptive. …About every two years its 20-year history, Microsoft has undertaken a major reorganization.”
PRO: Soft copy can be distributed and shared. Can do basic analytics/KPIs.CON: Model and Business data disconnected after initial extract. Hard to track changes.
PRO: Business data obtained from source (should be accurate initially!). Visualisation. CON: Can’t manipulate in the visual tool.
PRO: See and model existing data in a visual way. Most tools have some level of control for approval and collaboration.CON: Model and Business data disconnected after initial extract. Ability to write back change
Service company - one of the largest employers in UKImplemented Nakisa OrgChart and OrgModelerOrgModeler offered them a visualisation of their organisation PLUS:Ability to take snapshot of dataModel changesCollaborate with others when modelling (for approval, etc.)End result of the modelling to link to next step of process – updating their HCM system
Be Clear on what you are trying to achieve & communicate with employees on reasons (when appropriate)“A KPMG study showed that 83% of mergers and acquisitions failed to produce any benefits – and over half ended up reducing the value of the companies involved.” (from ??)“an organization's performance is really no more and no less than the sum of the decisions it makes and executes.” (from http://www.forbes.com/2010/07/30/corporate-reorganization-abb-ford-leadership-managing-bain_print.html)“Structure the company around its sources of value” (same Forbes ref as above)What principles are you applying? (e.g. max heads reporting to a manager, headcount reduction, grade alignment)
“Tools to help with visualization, quality and data enrichment will bring additional trust to the data and make HR insights an integral part of business review, just like financial and operational data.”Importance of dataStart with good data – it’s your foundation.Use analytics & KPI’s to track the aims of your model – to know when you are done.Daniel Keys Moran (born November 30, 1962), also known by his initials DKM, is an American computer programmer and a science fiction writer. “Data is a precious thing and will last longer than the systems themselves”. Tim Berners-Lee------- Many organizations face a barrier preventing them from effective business decision-making: their data. It is only possible to make sound organizational decisions if your HR data is accurate and up to date. Often, though, there is simply too much information. It is found in a variety of sources and the data is coming in faster than most organizations can deal with. And the absence of solid data can have costly side-effects. A recent study by Gartner estimated that “Every business function will have direct costs associated with poor data quality. Investments in enterprise systems are at risk if the quality of data is poor. The result is a lack of acceptance and trust by the user community and pretty soon the investment is wasted.” Gartner Source: http://www.gartner.com/it/page.jsp?id=501733
Working the modelCollaborate. Manage business as usual change into your model (to keep that good data right!)Communicate with employees (yes, again!)“The only constant is change” –Heraclitus (Greek philosopher)
ImplementEnsure you have a workflow approval process – sign off!Have a controlled and auditable process for applying the changes to your source HCM system.Communicate with employees (yes, again, again!)Adjust other parts of your organizational system as necessary. A change in structure may require changes in decision roles, incentives and the like.