LATEST INTELLIGENCE
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Commentary on CRF’s research findings
This timely and robust report calls out the
unprecedented challenges that organisations, today,
are facing.
Digital disruption, complexity and connectedness
are ubiquitous themes throughout. Organisations
must learn to adapt. They must be responsive to
ever-evolving business strategies, as well as help their
people flourish during change.
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Nowhere is change happening more rapidly than
in digital transformation. To respond effectively,
businesses need faster organisation design cycles. As
the report concludes, it is no longer sufficient to rely
on the unfreeze-change-refreeze approach to design.
Instead, a process of continuous change is needed
– one that is driven by in-house HR teams and seeks
to constantly adjust designs in response to evolving
strategy. This continual cycle of organisation design
is a new, Board-level mandate for HR, but it is not a
common strength.
Worryingly, only 39% of research participants feel
they have strong organisation design skills within HR.
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INTELLIGENTCIO
What a missed opportunity for HR to take a more
central role in the development of the organisation.
Given 89% of respondents have recently gone
through or are still going through a reorganisation,
and a further 68% expect more change in the next
two years, building capability in this area should be of
paramount importance.
When it comes to developing capability in
organisation design, the report emphasises how
today’s practice involves much more than reporting
lines, organisation charts or spans and layers.
Organisations are dynamic ecosystems, made up of
many interconnected elements, succinctly embodied
in Galbraith’s STAR model: strategy, structure,
processes, reward systems and people practices.
Effective design considers all the organisational
elements, holistically, with all their interdependencies,
and makes changes systemically. Effective design
also addresses the inherent tensions that arise from
business strategy.
Where strategy is complicated – such as balancing
the need for agility and customer intimacy against
operational scale – then the organisation will be
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