1.
SUCCESS & FAILURES IN
ORGANIZATIONAL DESIGN
ORGANAIZATIONAL DESIGN

2.
Key Contents:
o Introduction
o Success in Organizational Design
 Synchronize design with strategy.
 Clarify roles and responsibilities
 Deploy the right leaders and the right capabilities.
 Design layer-by-layer, not just top-down
 Lower execution risk
 Don’t wait for a crisis to reorganize.
o Failures in Organizational Design
 Poor Planning Sets Up Organizational Change for Failure
 Inadequate Support from Leadership
 Lack of Resources
 Priority Focus on Systems vs. People
 Inadequate Change Leadership Skills
o ThankYou

3.
Success in Organizational Design
 Synchronize design with strategy. Regardless of the
precipitating factor, the reorganization must align with the
organization’s strategy and business priorities in the simplest
way possible.
 Clarify roles and responsibilities. Of all the organizational
capabilities most required for a successful reorganization, this
set—clarifying roles and responsibilities, assigning
accountabilities, and determining decision rights—is one of
the most difficult to get right.

4.
 Deploy the right leaders and the right capabilities. In
reorganizations, a common pitfall is tailoring the redesign around the
individual capabilities of a few important executives. Another pitfall
is overlooking the capabilities required for the new design to succeed.
 Design layer-by-layer, not just top-down. A cascading approach to
design puts companies in a better position for success. Address the
needs of each layer, according to consistent design principles, rather
than using a top down-only design approach.

5.
 Lower execution risk. Execution is by far the most
important capability for achieving a successful
reorganization—applying a step-by-step, disciplined
approach to implementation is crucial to avoid
missteps.
 Don’t wait for a crisis to reorganize. Reorganizations
that take place prior to a crisis have a much better
chance of success. During a crisis, the odds of a
successful reorganization are only 50/50.

6.
Failures in Organizational Design
Poor Planning Sets Up Organizational Change for Failure :
1) Change roles, governance and decision-making,
2) Stakeholder engagement strategy and communications,
3) Timeline, resources and capacity,
4) Key initiatives and how to integrate them for maximum speed
and efficiency.
5) Without a well-designed change process plan, a likely outcome
will be a false start, resistance, and/or eventual failure.

7.
Inadequate Support from Leadership:
 Organizational change does not succeed without leadership support. And
lip service is not enough. Leaders must champion and model the change for
the rest of the organization, in both what they say and do.They must be
active, consistently supporting the change teams as they design and
implement changes. They must be out communicating the benefits of the
change to stakeholders and listening to and responding to their concerns. If
your leaders are not prepared to stay actively involved, perhaps it isn’t the
right time for them to launch a major change effort. Forbes magazine
supports the fact leadership support plays a crucial role for the success of
organizational change, saying that successful change initiatives start at the
top and organizations should "set up a top-level team of experts, reporting
directly to the CEO".

8.
Lack of Resources
 Lack of resources is one of the most common reasons why organizational change fails in
most organizations. Adoption and sustainment of change are long term investments. They
don’t occur just because an awesome solution was designed. It has to get implemented, and
then tested, refined, and reinforced. This generally is a longer, and costlier endeavor than
most change leaders realize.
Priority Focus on Systems vs. People
 Leaders often focus more on the system changes than the people that have to make and live
with them. Don’t forget that while you need to have systems in place, it’s the people who
matter most. “Sustained change is always driven by people,” says Lee Colan in his article
“10 Reasons Change Efforts Fail.” “Even implementing new software successfully is more
about the people who will use is, install it, train it, and support it than it is about the system
itself.”

9.
Inadequate Change Leadership Skills
 One could easily argue that this is the #1 cause of failed
organizational change. Why? Because every issue or problem
within a given change initiative either gets prevented, solved,
or caused by the skill of the change leaders in charge. And the
truth is, we don’t adequately train our leaders to become
competent change leaders. Leadership development is a part
of virtually all large organizations, but change leadership
development is sorely missing. The net is that leaders tend to
run change initiatives like they run their organizations, and
the two are vastly different

10.
ThankYou
Done by:
Reg. No: RA1952001020087
Name: Bala Krishnan A