There are many drivers that can trigger an organisation review or restructure however the biggest driver of late, seems to be the drive to reduce costs. 2016 was no doubt a difficult year for many organisations and in particular some specific industry sectors.  The impact of lower oil prices and fast paced technology developments has driven many organisations to rethink the way things have traditionally been done and prompted a review on how the organisation is structured and ultimately operates i.e. the organisation design. This is an important issue that many organisations do not place enough emphasis on when times are good. More often than not, this becomes the first area of focus when times are tough and therefore this approach in itself, is probably one of the main factors that contributes to a fear of job losses when the topic of restructuring is being discussed. It goes without saying, therefore, that organisation restructuring is a very sensitive issue for everyone concerned.

The pressure to protect margins especially in a difficult economic climate can force organisations to rationalise costs through headcount reductions and explore more efficient ways of working. Organisation restructuring is still very often, something that is managed from within closed doors and without the involvement of the broader management team yet we could argue that all managers should be responsible for optimising margins and managing costs regardless of external market conditions. In fact, once could argue that organisation restructuring / design should be reviewed as part of an organisations ongoing continuous improvement process. Regardless of the drivers, here are some things you should think about when reviewing or restructuring your organisation:

• How will the strategy be delivered through the organisation design/structure?
• How is value created and/or delivered to the customer?
• How is accountability delegated through the organisation structure?
• Are the required skills and competencies available to make the organisation effective?
• How is authority delegated through the organisation?
• What processes/mechanisms are needed to ensure all parts of the organisation structure work together?
• What is the cost impact of restructuring?

How an organisation is designed and structured can have a direct impact how it performs. An effective organisation design integrates the structure, its people, the processes, the systems and interdepartmental linkages whilst taking into consideration the external environment in which it operates. Whether an organisation is preparing for growth or rightsizing it is important not to lose sight of the overall organisational design and structure of the organisation to ensure it operates effectively.

How we can help you?

At PeopleFirst we have a proven track record of developing organisational design solutions that are aligned to specific operating environments and best practices. We have extensive experience in this area having designed and restructured large and small organisations across a wide range of industries within the government, semi government and the private sector as well as start- up companies.

If you have questions about organisation design or restructuring, contact us:
T: +971 4 4475210
www.peoplefirstme.com
info@peoplefirstme.com