The Organization Design Toolkit for HR

In your human resources and

organization

al development work, you will encounter

organization

al

design

issues. This video will introduce you to the organizational

design

toolkit

that is intended to serve as a resource for you as you work with your clients. I'm Amy Kates, managing partner of the Katees Kesler organization. Consulting we are a boutique firm that specializes in organizational design. We have written four books that will give you a deep understanding of organizational design methods and models. The toolset we've put together for you has the proven frameworks we use every day. Our own consulting practice works with leaders of large companies around the world.

We always start any discussion about organizational design with the star model. The star model was developed by Jay Grith almost 30 years ago to help provide a holistic view of the organization. It is the what of the organization. design we always start with the strategy what is the objective of the company or organization that we are analyzing what we want to be done the most important thing then our capabilities what does this organization have to be really good at something better than our competition to be able to be successful, this It gives any leader four levers to design the structure, which is about power relations and the architecture of the organizational process, which tells us who needs to collaborate and how we should unite the organization across the boundaries of function, geography, the product, the customer groups, the leader.

It is also necessary to design metrics and rewards so that people know what the measures of success are, how we know if we are working together appropriately at the team level and at the organization level and, finally, the star model is based on the practices of good people, What is the talent? profile of the people we need, how do we need to train them and give them the skills and set the expectations for their success together? The star model is about alignment depending on the strategy and capabilities we need to develop, then we must make adjustments to structure the process metrics and people to have an aligned organization.

The second central model in the design of the organization is the five processes. of milestones this is the how of the organization we always start with what is the problem to be solved to get a client and a leadership team to align on where they are going and what is the opportunity that must be taken advantage of before going looking for any solution , the second part is then looking at the strategic grouping, architecture and integration mechanisms together. We often do this work in a participatory way and find that This is the design part of the organization and benefits from having a diverse group of people bringing their perspectives to the work.

So we need to make sure we have the right talent and leadership to enable design, leadership and talent to go hand in hand with the organization. With strategy, they are the three ways any leader brings their organization to life transition planning implementation change management we started thinking about it from the beginning, but it's a lot of work that follows the organization's core design decisions throughout. I want to guide you. Now there is a set of nine questions that really form the basis of how we view an organizational design project. In your

toolkit

, you have tools for Framework models and examples around each of these and each of these are explored in depth in our books.

The first question we ask is whether we are clear about strategic growth options. We often use MacKenzie's three Horizon models, but there are many strategic models to use. Most importantly, we are looking for alignment of the executive team around where they are going. make investments in which countries the product lines and the intersections where they join are the most important for the business being clear about growth options helps establish the framework for organizational decisions the second question we must ask ourselves is what new capabilities are needed Any type of change that is undertaken will require new capabilities in the business, which we call design criteria, they help us choose between different organizational options.

Our third question is: have we agreed on the problem to be solved? Once we have a strategy and a set of capabilities that we know. Where we are going now we need to know how big the gap is from where we are today to our intended destination. This is the diagnosis and this is a really important part of the organization design work. We need to be clear about the root causes and We need our customer to own the problem to be solved, then we are ready to really explore organizational options and align with an architecture. We call this organizational model.

All organizational models are made up of a combination of four core building blocks of structure, function, geography. product and customer, the way we put them together in levels and layers or connect through relationships Matrix creates our organizational model, we need to explore many options and understand the trade-offs between them and we need to create one that fits the purpose of our strategy an Once we have an organizational model, we can go into detail and identify the contribution of each layer, including the leadership team. This gives us our organizational chart and roles. Structuring roles is not enough.

We need to look at the critical points of integration and how we connect them. our sixth question and our work really revolves around creating those connections through structure, no matter how we put the work together we will create silos and boundaries, finding the right intersection points where people need to collaborate is an important part of the design process. We often call this the business handshake that needs to come together across functional boundaries, product geography or customer groups to actually plan measure uh Monitor and make adjustments to the work. The seventh part of our toolkit is resolving tension points.

All organized designs create tension. What we want. What we need to make sure is that we have the right people around the table, we have a way to resolve this tension, and at the end of the day, a role is responsible for the quality of that decision. We call this the golden vote and the decision. rights working on them as part of the design process is essential to ensure the organization works number eight is what oversight forums need to be configured or reconfigured this is governance who we should meet how often they meet what roles are included what what is their agenda , what outcomes we often expect if we don't reconfigure our governance forums, ultimately we haven't designed the right conversations, what we need to do to enable people in new or critical roles to succeed in the new model, do we need to?

To change compensation metrics, do we need to help them build new relationships? Do we need to give them new skills and tools so they can succeed and thrive and meet the expectations of the new organization? The best way to build your organization's design muscle is to simply Try It. I encourage you to incorporate these tools into your own practice and wish you all the best in your organizational design work.