Objectives

Upon completion of this course, participants will be able to:

• **Explain** the critical links between business strategy and the choices in organizational structure and operating model.
• **Apply** systematic diagnostic models to evaluate the current organizational design's effectiveness and pain points.
• **Design** and justify various organizational structures (e.g., functional, divisional, matrix, Agile network) based on strategic need.
• **Define** clear roles, responsibilities, and decision-making rights to enhance accountability and execution.
• **Develop** a comprehensive implementation and transition plan for moving to a new organizational structure.
• **Manage** the political, emotional, and communication challenges inherent in a major structural change.
• **Understand** the impact of structure on key HR systems, including performance management and compensation.
• **Measure** the success and sustainability of a new organizational design against its intended business outcomes.

Target Audience

• HR Leaders and CHROs who sponsor and lead organizational redesign initiatives.
• HR Business Partners (HRBPs) who consult on team and departmental structure.
• Organizational Development (OD) and Change Management Specialists.
• Strategy and Planning professionals involved in defining operating models.
• Senior Line Managers responsible for structuring their own business units.

Case studies illustrating different organizational structures, Hands-on exercise applying a diagnostic model to a business scenario, Group design challenge: creating a new structure for a case company, Role-playing communication of structural changes, Workshop on RACI and decision rights clarification, Expert discussions on Matrix complexity.

Outline

Unit 1: The Strategic Foundation of Organizational Design

Strategy-Structure Alignment

• The principle of 'structure follows strategy' and its implications for design.
• Understanding core business capabilities and strategic value streams.
• Identifying the competitive advantages a design must enable.
• Common reasons why organizational structures fail to deliver results.

Organizational Design Diagnostic Models

• Applying the Star Model (Strategy, Structure, Processes, Rewards, People).
• Identifying misalignments and structural deficiencies (e.g., silos, slow decision-making).
• Collecting diagnostic data through interviews, surveys, and workflow analysis.
• Defining the design criteria and scope for the new structure.

Unit 2: Designing the Operating Model and Structure

Core Structural Options

• Deep dive into functional, divisional, geographic, and product-based structures.
• Analyzing the complexities and risks of the Matrix structure.
• Introduction to modern, flexible structures (e.g., Agile networks, Holacracy).
• Selecting the primary structural model based on the business context.

Defining the Operating Model

• Distinguishing between structure, operating model, and organization chart.
• Designing shared service models and centers of excellence (CoEs).
• Determining the level of centralization vs. decentralization for key functions.
• The role of technology and digitalization in shaping the operating model.

Unit 3: Role Clarity and Governance

Defining Roles and Accountabilities

• Developing a systematic process for defining and evaluating new roles.
• Using RACI (Responsible, Accountable, Consulted, Informed) to clarify decision rights.
• Identifying critical interfaces and coordination mechanisms across boundaries.
• Managing spans of control and layers in the organizational hierarchy.

Designing the Governance Model

• Establishing effective committees, forums, and cross-functional teams.
• Designing the communication flows and meeting cadence for the new structure.
• Addressing power dynamics and political considerations in the design process.
• Aligning leadership roles and capabilities with the demands of the new design.

Unit 4: Implementation and Transition Management

Developing the Transition Plan

• Creating a comprehensive, phased plan for the organizational change.
• Identifying and selecting people for the new roles (staffing process).
• Managing 'Day 1' logistics and the practical aspects of the transition.
• Strategies for maintaining business continuity during the structural change.

Communication and Change Leadership

• Developing a clear, transparent, and empathetic communication strategy.
• Training managers to lead their teams through the structural change.
• Managing employee anxiety, uncertainty, and resistance to role changes.
• The importance of visible, consistent leadership sponsorship.

Unit 5: Alignment and Sustainability

Aligning People and Reward Systems

• Designing performance management to support the new structure and team objectives.
• Aligning compensation and incentive systems with new role accountabilities.
• Identifying and addressing skill gaps required by the new design.
• Integrating culture shaping efforts with the structural change.

Measuring and Sustaining the Design

• Key metrics for assessing the effectiveness of the new structure (e.g., speed, efficiency).
• Conducting a post-implementation review and assessing success criteria.
• Developing a process for periodic review and continuous adaptation of the design.
• Finalizing the documentation and governance for the new operating model.