MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Welcome to the session on Organizational Design Failures.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

In this session we will understand about the organizational design failures.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Now we shall discuss some of the important reasons for the failure of organizational design.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

1. Assuming that organizational design is equal to organizational structure only.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Organization structure in a sense roles, reporting structure, workplace matters in creating clarity for people.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

But sometimes when you are trying to drive change, focusing on changing structure is not the right answer.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Reorganizations are certainly the most visible type of organizational change but they are also incredibly disruptive

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

and depending on the goal they can be the best least effective way to drive most of the outcomes that leaders actually want.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Jumping to structure without a clear business strategy. That is another reason.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

This mistake is closely related to the previous one.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Whether it is building a new organization or shaking up an existing one.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Many leaders will dive into changing roles, teams and headcount plan.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Instead consider first and foremost what your strategy is.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Then translate the strategy to the capabilities the organization needs to execute that strategy.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

3. Designing roles around individuals.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Given the realities of the labor market, it is understandable that leaders tend to look around their company to see what existing talent pools they can draw from.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

As a result, sometimes companies can end up creating weird Frankenstein roles that do not require, they do not quite make sense for their business strategy.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

This makes success in planning a nightmare because it is very difficult to replace people.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Plus, if the role is too bloated and removed from what the market actually says it should do.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

People will have a hard time finding new jobs with the same title and you will only be able to retain people who want to build their resume.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Benchmarking heavily against other businesses.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

What are the other companies doing?

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

When we hear that question, we know that the underlying thought is, I am not sure what we are doing is right.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Maybe someone else has figured it out.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

This is totally understandable.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Instead of relying so heavily on what other companies are doing, leaders should take that information as a single tiny data point and instead make organizational choices based on their own strategy and their own culture.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

5. Perfecting the RACI matrix.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

If we would just create a clear document on who really owns the decisions, we will be able to work better together.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

What is RACI matrix?

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Responsible, Accountable, Consulted, Involved.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Who is accountable?

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Who is responsible?

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Who has to be consulted?

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Who is involved?

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

This is the clarion call for many frustrated teams.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Terrifying decision making is indeed critical for all organizations and teams.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Leaders can get wrapped around creative complex matrixes that reflect every possible reality of the organization.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Promoting excellent performance to leadership without support.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Before you start promoting people who are technically excellent, make sure you are setting them up for success.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

First, define your leadership expectations based on your strategy.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Second, provide new leaders with coaching, mentoring and training before you throw them into the deep end.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Third, make it enriching to be really valuable individual contributor.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Second, allow space for growth outside of the typical ladder-climbing framework to ensure that everyone continues to play to their strengths.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Second, creating hard target spans of control across companies.

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S… Speaker 2 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

We often see this when companies go through

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

So please start getting worse when companies have been mentored from the board of the people.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

What do you want to do?

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

mergers and acquisitions. Leaders will get to work trying to rationalize between the two or

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

more types of organizations, right sizing everything according to rigid formulas.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

For example, the target span of control is 10 team members to one manager and then this is

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

applied broadly across every organization at the company. Taking a peanut butter approach to lay

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

off. When it is time for a round of layoffs, leaders are often asked to hit a target person to cut from

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

their pledges. The danger of assigning this kind of target across the board is that you are potentially

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

going to cut into muscle instead of fat. This is where you really need to align capabilities with

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

your strategy so that you can make informed nuanced decisions about how to recalibrate work roles and

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

overall organization. Tracking only the standard business metrics. Companies track critical metrics

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

like revenue, earnings before tax and interest pipeline etc to understand the health of the

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

business. But beyond getting a clear picture of how things are going, metrics can also play a powerful

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

role in driving where people focus their attention and what they do. Indeed, what gets measured gets

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

improved or done. Declaring a new culture and over relying on an internal marketing campaign.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

We are sure you have heard this story before. Senior leaders announced, starting today we are going to

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

be a more collaborative, inclusive organization. Everybody gets excited but then nothing really

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

changes. Treat culture change as a change in your organization design. You can change a company culture

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

by first getting clear and aligned on what the decided descriptors of that culture are. Failure of firms to

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

respond to shifts in the external or internal culture. Let's say external shifts and the internal shift.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Personal factors means political, economic, socio-cultural and technological factors.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

1. Mastery of and fit with current environment. 2. Success usually measured by financial

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

social metrics. 3. Structure, metrics and systems to accommodate and manage size. 4. Organizational inertia.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Organizational inertia means there is no dynamism, there is some kind of static activity in the organization.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

Break for questions. Question number one. Dimension that characterizes the organization comprising its size,

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

technology, technology, environmental goals. 5. Technology, environmental goals is said to be

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

a contextual dimensions, be structural dimensions, say procedural dimensions, be non-structural dimensions.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

So the correct answer is contextual dimensions. Because the dimension that characterizes the organization,

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

comprising its size, technology, environmental goals, depend on the nature of the environment.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

the environment and the situational factors, the context or the environment in which the organization operates.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

2. The culture followed by a natural organizational design system is

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

A. Static. B. Rigid. C. Adaptive. D. Dynamic.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

3. The characterizes adaptive because adaptive organizational design is the organization is able

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

to adapt itself so effectively to the changing environment. In this session we have understood about

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

organizational design failures. Happy learning. Thank you.

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S… Speaker 1 (MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian)

5. True.

MBA_OB_unit 5_week 15_seq 7_Organisational Design Failure_Pandian

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