Slides used in the WEBINAR - Data-driven Organizational Design to improve efficiency and productivity an AI powered technique held on Friday 14th January, 2022

1. Data-driven Organizational Design to improve efficiency and
productivity
an AI powered technique
14th January 2022
Welcome to the Webinar on

2. PeopleWiz Consulting LLP – A Snapshot
Established in Feb
2011
Offices at Pune,
Bengaluru,
Singapore
110 +
Assignments
benefitting over
2.5 lac employees
Sectors served: Engg,
Mfg, Agri, IT,
Technology, BFSI,
Services, Retail
NCL Venture Centre Re:Config PayGroup (TalentOz) BP360
Founder & Managing Partner
Alum: Indian Institute of
Science
Exp: Thermax, TCS, WAIC
Protima Sharma Shyne D Kochuveed Dr Garima Sharma
Organization
Design
People Advisory Managed HR
India | Middle East | APAC
HR Tech
Alliances
Wadhwani
Foundation
Co-Founder & Partner
Alum: University of Oxford
Exp: Thermax, Siemens
Co-Founder & Partner
Alum: Case Western Reserve
Exp: Patni Computers, New
Mexico, Georgia State
We design and build
future ready organizations
for Entrepreneurs and
Enterprises
www.peoplewizconsulting.com | info@peoplewizconsulting.com
Business Benefits Led | Research Driven | Collaborative Engagement

3. Panel
1
B.Tech. from the IIT- Bombay
Ph.D. from the MIT, USA.
Has been a Chevening
Technology Enterprise Scholar in
Cambridge, UK.
Under his leadership, over the last
15 years VC has established itself
as a leading technology business
incubator for science and
technology start-ups. VC has
supported 650+ entrepreneurs till
date who have generated 1000Cr
+ revenue till date. Awarded as
Best Tech Incubator in India.
Head, NCL Innovations at CSIR- NCL
Founder Director Venture Centre
Associate Professor,
Norwegian Uni of Life Sciences
Co-founder at Re:config
CMO, Re:config
CEO, Growth Engine
With a Masters in Informatics
from Amsterdam, Tim has
held various positions as a
marketing leader responsible
for growth and expansion.
Tim is a board-level advisor
on business strategy and
transformation management.
In addition to his role at
Reconfig, Tim is a business
coach for several start-ups
and sustainability initiatives.
An internationally recognized
expert in the field of
Organization Design
MA(Psychology), McGill
University
PhD, Oxford University
Consulting career at Deloitte,
Accenture, PA Consulting.
Nicolay Worren Tim De Boer Dr V Premnath

4. • This is in webinar mode so all attendees are muted.
• Please use the Q&A section to submit your questions.
• Panelists will speak for about 1 hour on the topic followed by Q&A. Please
keep adding your questions during the session. The host will ask the
questions on your behalf at the end.
• The session is being recorded and the recording will be sent to all attendees.
• In case of any internet interruptions, we have planned backups. Please be
patient.
Social Rules
2

5. How does Org Design impact efficiency & productivity
at organizations?
Why should the leaders care for Org Design?
5

6. The basic building blocks of organization design
A1
A
2
A
A1
A
2
A
Decomposition
(grouping)
Integration
Number of layers
Specialisation/
differentiation
Size of units
Span of
control
Centralisation/
vs.desentralisatio
n
Horizontal
processes
Vertical
process
es
Employee costs

7. From design decisions to outcomes
Design
decisions
Direct
outcomes
Intermediar
y outcomes
Eventual
outcomes
• Overall performance
• Innovation
• Productivity
• Customer satisfaction
• Quality
• Employee satisfaction
• Alignment with
strategy
• Structural coherence
• Communication
patterns
• Coordination costs
• Career paths
• Role clarity
• Autonomy and
authority
• Inter-unit conflict
• Information flow and
knowledge transfer
• Resource utilisation
and sharing
• Joint value creation
• Social networks
• Number of layers
• Specialisation/diff
e-rentiation
• Size of units and
span of control
• Locus of decision
making
• Employee costs
• Level of vertical
and horizontal
integration
• Decomposition and
grouping
• Integration
Effects of other
(non-org. design
related) factors

8. Alignment between structure and work processes
Clustering interdependent roles (or units) together

9. “In partitioning a system into subsystems, choose a
configuration with minimal communications between the
subsystems.“
“Don't partition by slicing through regions where high
rates of information exchange are required.”
Eberhardt
Rechtin
Generic design principles

10. The lack of "Situational Visibility"
“Covid-19 and the transition to remote digital
work have only made it harder for managers to
understand how their teams are working.”
Source: HBR/2021/1
"in our study, managers were routinely shocked
when we revealed our results to them."

11. What ails traditional structuring approach?
What value does AI add?
1

12. The problem with current organisations
The world needs more
effective organizations
A better design process is
needed to create better
organizations
Organizations are facing a ‘triple-I’
challenge:
• Information overload
• Increasing complexity
• Insufficient governance to meet 21st
century sustainability challenges
Issues with current design practices:
• Intuitive instead of data-driven
• Political instead of strategic
• ‘Secret’ instead of transparent

13. Collaboration overload is crippling organizations
“Collaborative work — time spent on email, IM, phone, and video
calls — has risen 50% or more over the past decade to consume
85% or more of most people’s work weeks, and the Covid-19
pandemic caused this figure to take another sharp upward tick.
These invisible demands are hurting organizations’ efforts to
become more agile and innovative. And they can lead to individual
career derailment, burnout, and declines in physical and mental
well-being.
Forward-looking organizations are taking action to protect
employees from the volume of collaborative demands by
employing organizational network analysis”
Harvard Business Review, September 7, 2021
https://hbr.org/2021/09/collaboration-overload-is-sinking-productivity

14. Sustainability increases organizational complexity
There is no
stakeholder
capitalism
without
stakeholder
governance
"The gradual pace of social progress is occasionally punctuated by
periods of rapid change. We are undoubtedly amid one of these
shifts, as pandemic, climate risks, and economic and racial inequality
test society’s resilience – and rapidly force new ways of operating.
These shifts are increasingly apparent in the business world, where
businesses are adapting by integrating stakeholder outcomes into
their business models.”
World Economic Forum, Agenda2021
There are more stakeholders to take into consideration, more reporting requirements,
more goals and KPIs that need to be balanced.

15. The design problem
#1 Access to relevant information
2%
19%
24%
42%
13%
HAS NEVER
BEEN A MAJOR
CHALLENGE
2 3 4 HAS ALWAYS
BEEN A MAJOR
CHALLENGE
"Understanding how people collaborate and/or
exchange information across units in the current
organization"
Source: Journal of Organization Design volume 8, Article number: 13 (2019)
Article can be downloaded from: https://jorgdesign.springeropen.com/articles/10.1186/s41469-019-0053-x

16. The design problem
#2 Analyzing and making sense of the data

17. Our solution
www.Reconfig.no

18. Using data and analytics, we help
create better organizations.
We support leaders and
management consultants to act
on evidence rather than intuition
resulting in measurable
productivity gains.
Management consultants about
Reconfig:
"This is creating a paradigm shift
in the way we work..."
About Reconfig

19. Business leaders are recognizing the value of data
Big data and analytics are driving the 4th
industrial revolution.
Companies that excel at integrating data
into their strategy, operations and culture
are largely outpacing their peers in
revenue growth and profitability.
Source: IBM Thought leadership Institute / C Suite Study 2021

20. For whom
ü Increase productivity
ü Reduce cost
ü Make better, fact-based
decisions
ü Reduce internal politics
CEO
ü Design better organisations
ü Fair, inclusive and
transparent process that
provides rationale for
change
ü Get a seat at the table
when strategy is discussed.
CHRO / Internal consultant
ü Provide better service
ü Innovate portfolio
ü Acquire new clients
For independent consultants:
ü Handle complex
re-organization projects
with a small team
ü Compete against larger
consulting firms by utilizing
better tools
External consultant
ü Integrate the Reconfig
data-driven methodology
in the business school
curriculum
Education

21. How Reconfig takes organization design
to the next level
See: http://www.organizationdesign.net/how-do-you-make-organization-
design-decisions-a-maturity-model.html
The Reconfig methodology is based on three pillars:
• A sequenced process
• The use of data analytics
• Involvement of stakeholders
These can be regarded as
steps on the maturity ladder
for organization design.
Consultants and internal
advisors who use Reconfig
play an essential role in
guiding organizations to
stage 4 maturity.

22. Example: Organizing 6 engineers
Anderson
Performs analyses for Edwards
1
Brown
Helps Craig develop
documentation
2
Craig
Documents the technical
requirements and explains
them to Brown and Downey
3
Edwards
Communicates the
requirements and results of the
analyses to Craig. In addition,
he initiates and follows up the
analyses that Foster and
Anderson are doing.
5
Foster
Assists Anderson in the analysis
work.
6
Downey
Helps Brown in developing
documentation
4
Roles in an engineering project
Question: If the firm has a rule that says that each team should have maximum 3
members, who should be placed on the same team?

23. The Design Structure Matrix (DSM) can be
used to document and automate role grouping
/clustering to minimize coordination costs
Anderson
Performs analyses for Edwards
Brown
Helps Craig develop documentation
1 2
Craig
Documents the technical
requirements and explain them to
Brown and Downey
3
Edwards
Communicates the requirements
and results of the analyses to Craig.
In addition, he initiaties and follow
up the analyses that Foster and
Anderson are doing.
Foster
Assists Anderson in the analysis
work.
5 6
Downey
Helps Brown in developing
documentation
4
A B C D E F
A
A X X
B
B X X
C
X C X
D
X D
E
X E X
F
X F
DSM

24. Grouping gets progressively more difficult
with higher complexity
• The graph is based on an experiment with 173 students, where they were asked to group/cluster 6, 9 and 12 interdependent roles into
teams.
• In a real project, there are usually not six to twelve but dozens or hundreds of elements that one needs to take into consideration
0%
20%
40%
60%
80%
100%
0
100
200
300
400
500
6 roles 9 roles 12 roles
Results from grouping experiment
Time used on average (seconds)
Percent who identified best solution

25. Solution to 6-person example in DSM format
Current organization Proposed organization
Suggested
teams
Coordination
cost after re-
grouping
(compared to
current solution
(=100%))

26. Current organization Proposed re-grouping
Example of analysis with 60 roles

27. Reconfig’s three modules
Data gathering by means of a
questionnaire
«How often are you in touch with John
Smith?»
Daily
Every week
Every month
ü
Visualization of
interdependencies (interfaces) in
the organization
Optimization of grouping (i.e.,
team and sub-unit design) using an
algorithm
A B C D E F A D F C B E
A X X A X X
B X X D X X
C X X F X
D X C X
E X X X B X X
F X E X X
Original DSM Restructured DSM

28. Design module
You are invited to take the challenge at
https://reconfig.no/challenge/

29. Thank you for joining us.
PeopleWiz Consulting LLP
SparkPlug Coworks, Office No-
42, 100 Ft Road, Koramangala,
4th Block. Bengaluru -
560034Ph: +91-9158659590
Bengaluru
PeopleWiz Consulting Pte Ltd
100 Tras Street #16-01 100
AM
Singapore 079027
Ph: +65- 94241299
Singapore
PeopleWiz Consulting LLP
101, Platinum Square
Viman Nagar Avenue 1
Pune-411014
Ph:+91-9158999264
Pune (HQ)
To know more about our Org Design offering or view a detailed Reconfig Product
demo, write to od.ai@peoplewizconsulting.com