This presentation outlines the following information, brought to you by ArchPoint organization design experts, Bob Landis and Jose Davila: • How to increase the probability your organization design will support the execution of your strategy • Why your current organization design efforts may be lacking • Tried-and-true processes for how to design a new organization and how to implement the design • Considerations for before, during and after organization design implementation

1. 1We create connected companies.
How to Structure for Strategic Success:
Essentials for Effective
Organization Design

2. 2We create connected companies.
1. Introduction
2. 5 Essentials of Effective Organization Design
3. The ArchPoint Organization Design Process
4. Q&A
Outline

3. 3We create connected companies.
ArchPoint is a boutique professional services company, serving clients
across the globe. We leverage world-class capabilities to solve
business leaders’ most complex challenges. Our capabilities cover:
• Management Consulting
• Branding
• Integrated Marketing
• Strategic Sourcing
• Supply Chain
• Sales Agency
• Research & Analytics
About ArchPoint
Learn more by visiting
www.archpointgroup.com
or emailing us at
contactus@archpointgroup.com.

4. 4We create connected companies.
Meet your presenters
Bob Landis
Managing Director, USA
People & Change Leader
bob.landis@archpointgroup.com

5. 5We create connected companies.
Meet your presenters
Jose Davila
Partner, People & Change Practice
jose.davila@archpointgroup.com

6. 6We create connected companies.
How to Structure for Strategic Success:
Essentials for Effective
Organization Design
1. Start with Strategy
2. Define the Capabilities Required to Win
3. Involve Those Who will be Impacted
4. Align Metrics and Rewards
5. Have a Clear Implementation Plan

7. 7We create connected companies.
Start with Strategy

8. 8We create connected companies.
• Don’t inhale your own fumes
• Figure out exactly where you are going
• Honestly assess yourself

9. 9We create connected companies.
• Build a plan – “where to play”
• Align leaders with resources
• Articulate it widely and frequently

10. 10We create connected companies.
Define the
Capabilities
Required
to Win

11. 11We create connected companies.
• Build a plan – “how to win”
• Build or buy required capabilities
• Consider both people and processes

12. 12We create connected companies.
Processes:
• What are the core (5 or 6)
processes of the business?
• Where must you be superior to competition?
• Where can you be at parity?
• Where will minimal “compliance” level suffice?
People:
• Lack required talent? Build development plan.
• Deploy best talent on most critical processes.
• Reallocate people resources to processes based on
importance assessment.

13. 13We create connected companies.
Involve Those who
will be Impacted

14. 14We create connected companies.
• Open up the process
• Involve those close to the customer
• Trust the design team

15. 15We create connected companies.
• Great design teams:
• Include subject matter experts
• Cut across levels
• Involve informal change agents

16. 16We create connected companies.
Align Metrics
and Rewards

17. 17We create connected companies.
• Most employees really want to do the right thing
• Metrics should help employees make choices
• Functional metrics sometimes send conflicting messages

18. 18We create connected companies.
Example:
• Sales is incentivized on growth and
sales to new customers
• Operations is incentivized to maximizing
throughput and minimize scrap
• Supply Chain is incentivized on service:
orders on-time and in full
Potential unintended consequences
• Sales accepts smaller orders to gain
new customers
• Operations delays production to aggregate
small orders in order to minimize changeovers
• Supply Chain has too little finished
product and shorts a new and
very profitable customer

19. 19We create connected companies.
Possible solutions:
• Set metrics to encourage functions to
communicate and collaborate
Sales, Operations and Supply Chain are
measured on a balanced scorecard
• Show each function specifically how to
enhance an enterprise metric
(like operating profit)
• Tell stories about great cross functional
collaboration to reward good behavior

20. 20We create connected companies.
Have a Clear
Implementation
Program

21. 21We create connected companies.
The importance of
accountability
Survey responses suggest that
changes in information flows and
decisions rights are twice as
powerful as changes in an
organization’s motivators
or structure.
Average Strength Index Score (out of 100)
Information 54
Decision Rights 50
Motivators 26
Structure 25
Source: Strategy & Analysis
of Org DNA Profiler Survey

22. 22We create connected companies.
• Align systems and processes to the new structure
• Clarify roles and responsibilities
• Educate the organization
• Engage change agents in communications

23. 23We create connected companies.
ArchPoint Phases
of Organization Design

24. 24We create connected companies.
ArchPoint Phases of
Organization Design

25. 25We create connected companies.
• Changing structure won’t naturally fix
process or people capability issues
• Structure must be an enabler,
not an end in and of itself
• All major changes require a
change management plan
Recipe for success

26. 26We create connected companies.
Thank you for attending!
Get in touch at contactus@archpointgroup.com.

27. © ArchPoint Consulting 2013