Enterprise Transformation: Transcending Traditional Organisation Design

Design is not just what it looks like and feels like. Design is how it works.
Steve Jobs

Three Views on Organisation Design

Organisation Design or OD is a term that is widely used by leaders, Human Resources professionals and consultantsyet often has a different meaning depending on the context in which it is used and the outputs produced.
1. Typically, OD refers to the systematic alignment of positions and hierarchies as typified in the boxes and wires of organisation charts. In this context, OD is also about determining optimal staffing levels, often in the context of optimising or right sizing an organisation. 2. Another view positions OD around the clarification of roles, KPIs and accountabilities which define how people are expected to perform. Commonly referred to as job design, this is primarily a who does what perspective of OD and is often aligned to reward and remuneration. 3. Yet a third view approaches OD from a governance angle, emphasising how the organisation makes decisions, key external / internal integration points, meeting forums and other aspects related to how the organisation operates.

Introducing Enterprise Transformation

Whereas Organisation Design tends to focus on outputs, Enterprise Transformation represents a commitment which enables an organisation to better understand itself and unlock exceptional value in its people.
Amidst the myriad and often confusing interpretations around the term OD, lies a subtle and common understanding within each: enabling an organisations aspirations to be realised and goals to be achieved. Each view implies the fundamental importance of understanding an organisations strategy, with the view of making it a reality. Thus the core premise behind Enterprise Transformation lies in converging the myriad interpretations around Organisation Design, clearly guided by the strategic direction of the organisation. Most importantly, Enterprise Transformation acknowledges the importance of the journey itself, rather than merely reaching the destination.

A straight path never leads anywhere except to the objective

Andre Gide

Unpacking Enterprise Transformation

Changing any part of an organisation, no matter how small, stands to have a profound impact on how people work and interact with each other- even if they are not directly affected by the change itself.
Effective Enterprise Transformation can unleash a tremendous amount of latent people potential. At the same time, such initiatives are invariably stressful and emotionally taxing to those involved and affected. It is increasingly evident that in order to be succesfull, traditional Organisation Design and Change Management efforts need to work together, in the context of Strategic Clarity to guide the way. It is equally important to acknowledge that all organisations are unique, and each Enterprise Transformation initiative must be contextualised in the organisations history that has led up to this point. Most importantly, understanding the subtle nuances that personify an organisation is key, as it is these nuances which will influence the Enterprise Transformation process going forward. Rather than the rigid application of generic methods and templates, the Enterprise Transformation facilitators role is to act as a guide down a path less travelledwhile taking cognisance of the journey to date. Of course, it is the peoplethemselves who work in an organisation who know their business the best. Enterprise Transformation is about forming effective partnership within the context of the journey, validating (and challenge) the their thinking in the context of a robust conceptual framework and providing assurances that the solutions developed are rigorous and defensible. In a nutshell, Enterprise Transforming facilitates a logical thought process, by asking the right questions and guiding key decisions around the organisations future.

Preparing for the Enterprise Transformation Journey

Despite the challenges and pitfalls associated with traditional Organisation Design, many organisations are only too eager to undertake it. Some leaders view OD as a silver bullet for remedying the ills of an organisation. At the worst of times, OD is used as a tool for advancing personal agendas or getting rid of non-performers. Even when undertaken for the right reasons, OD in itself is not a panacea for problems rooted in process inefficiencies, poor systems or remuneration imbalances- to name a few. Time and care needs to be taken to understand the true nature of the problem and needs of the organisation, before cavalierly committing to such a journey. When considering an Enterprise Transformation, it is advisable to conisder the following three questions before deciding if (and how) to proceed: Who is the organisation, what are those defining characteristics which are at the core of their organisational identity? What has the organisation been through, what is the context of the situation they find themselves in today? Where is the organisation going tomorrow, what does this means for the way in which they do business today?

Any Enterprise Transformation initiative needs to remain closely aligned to the real needs of the organisation, thereby enabling the alignment of effort and energy to those areas that will yield the most value with proportionally less effort.

The whole is greater than the sum of its parts

Aristotle

3 Dimensions of Enterprise Transformation

Enterprise Transformation represents a unique experience for each organisation. However, different dimensions of this journey are often linked by similar business scenarios:

For more information, please contact: Trevor Page Director Tel: +27 (11) 517 4263 Email: trepage@deloitte.co.za Hein Nienaber Executive Lead Tel: +27 (82) 551 5957 Email: hnienaber@deloitte.co.za Stefan Schmikal Lead Tel: +27 (82) 476 2063 Email: sschmikal@deloitte.co.za

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