Building a Digitally-Fit Organization: Prioritizing Organizational Redesign
Today’s widespread digital disruption is forcing companies to go back to the drawing board and redesign their organizational structures. In the digital age, organizational structures must not only be scalable and adaptable to evolving conditions but also deliver greater business value to their customers. The approach to organizational redesign can either be incremental or big bang, depending on how quickly an organization wants to make these changes, and its risk appetite and ability to make the necessary investments.
Mindtree recently executed an exciting and challenging organizational redesign initiative. Let’s deep dive into how our team of experts accomplished the task and the key takeaways from the project.
The customer, a leading multi-billion dollar US company, wanted to embark on a large scale digital technology implementation across its business portfolios. Other important mandates included making the organization more nimble by breaking silos and simplifying ways of working. The client had already deployed pilots and seen encouraging results by implementing digital technologies in just a few areas. It was looking for an experienced partner to execute the next step - taking the big bang transformation leap across the enterprise.
The task was not easy - given the size of the portfolios (more than 10), number of stakeholders involved (more than a thousand), and hundreds of chain of commands that were likely to be impacted.
We started by analyzing the current state in terms of how people were executing their tasks and their skill levels and competencies, and identifying challenges and areas of opportunities in day-to-day delivery. We also evaluated the metrics/KPIs being measured along with the entire chain of command - right from demand management and governance to software delivery and production.
The next step was to develop an organizational design framework relevant for the organization and implement it.
Key capabilities to implement an organizational design framework
Our team leveraged a key capability framework encompassing people, structure, process, and metrics and rewards (see Figure 1) to lay out the organizational redesign strategy aimed at making the company nimble and scalable - leading to superior business value.
Different capabilities that are required to execute the strategy, are –
People – Upskilling the workforce with specialized skills such as working with automation and other emerging technologies required for the digital age.
Structure – Simplifying the structure that delineates the activities and removes silos – both from a governance and delivery perspective.
Process – Creating a new operating model with clear line of command across activities.
Metrics and Rewards – Institutionalizing metrics and reward systems across the board for measuring and incentivizing outcomes.
Figure 1: Key capabilities critical to organizational redesign strategy
Although the framework has several moving parts, it is designed to accommodate changes to only the relevant parts in order meet future demands - without affecting the other parts.
Is your organizational structure designed for the digital age?
It’s easy to see why organizational design lies at the heart of an organization’s digital transformation strategy – and not as an adjunct to it. As markets and customers evolve, organizational structures and operating models must evolve in tandem to strengthen the organization’s relevance and competitive position.
At Mindtree, we create digital transformation success stories for our clients every day. To learn more about how we can help you, write to us here