Tuesday, 3 September 2019

32. A new structure for the organization


Some things become very clear in the aftermath of a reorganization!
A lot of time and energy is being invested lately into to rethinking the structure of organizations. And that is positive. The traditional functional structure based on the principle of specialization has proven its limitations over and over. Even 'assembly line' organizations have been working for years on an efficient team development to improve both quality, efficiency and job satisfaction. Multidisciplinary teams are the new concept, integrating what belongs together according to the logic of the processes. This transition will pay off more in companies with less routine work, and where more coordination between people is needed to come up with solutions and results. That is clearly the case if we no longer make standard mechanical products, but face more combinations of routines, more unpredictable situations (services) and even the need to engage specific expertise or intervene in the world of psychology at unpredictable moments (for example in care organizations, especially in a therapeutic or teaching setting).
If we observe how these new structures are designed, we can make some remarkable observations. A criterion that is often used as a criterion for re-design is the number of alignment relationships between people. That is of course not a bad idea, but it seems very incomplete. The quality of the relationships seems more decisive. These questions are therefore important:
-           What do people need each other for ?
-           How often, and how predictable are these moments of alignment?
-           How important is alignment for the results of the team?
-           How difficult is the substance of alignment?
-           How important is trust between those involved?
-           Etc ...
In addition to the one-sidedness of the quantitative approach (which still forms an important limitation in our way of thinking in organizations in many respects), there are a few things that are too often neglected in practice. some essential elements:
-           Job descriptions. It will inevitably be the case that certain (even most) functions will get a different content if we move to multifunctional teams. If it remains unclear to the person concerned and to the environment what the new function entails, then the new structure may not work as intended.
-           Mission of the new teams. It seems logical to agree and write it down clearly, but this is very often missing in the newly designed structure. This concerns both assignment, objectives, mandates and powers.
-           The structure of consultation. Which consultations are planned to organize the functioning of the teams, and especially the coordination with other teams and with management? Each structure of consultation must not only contain who is involved and what is on the agenda, but especially what the mandate is of that consultation and how the communication of the results is organized.

These three factors are a necessary component of the structure. It is therefore an unforgivable mistake in a reorganization to pay little or no attention to them. If that happens, employees in the new structure are left to their own destiny and, in addition to all the practical changes that they have to cope with, they to develop these dimensions themselves. Often reorganizations and ‘tilts’ of organizational structures will get stuck due to the related frustration of the employees.
But there's more. Directly related to a new structure, there are elements that the new organization structure needs to work smoothly:
-           New systems or different use of existing ones. Some systems may be crucial in the new operation. Just think of budgets, IT systems for registration and reporting, quality control, etc. They may already have existed, but it will be necessary for them to be used differently.
-           New processes. Some crucial processes will run differently in the organization. Think of strategy formation, investments, quality follow-up, knowledge development, etc.
-           Leadership style. This is a very crucial factor that in reality often makes the difference between success and failure. Leadership will also be present in the new structure, but the role and style will have to be different. If that is not clear and accepted for all involved, problems can be expected.
-           Culture. The existing culture, both operational and managerial, will determine how attainable the new structure turns out to be. In a compartmentalized organization there is often a culture of sub-optimization and poor cooperation between departments and specialisms. If only the structure is adjusted in such an organization, the culture will not automatically change. This requires much more targeted action, which may also have to precede structural change. (it mostly does!)
With this brief overview I just want to indicate that creating a new structure is a complex assignment that goes far beyond making a new drawing of the organization chart. If these additional aspects are forgotten, the reorganization is unlikely to be a success. Everything that is measurable is not important; everything that is important cannot be measured.
Moreover, if all the necessary changes are unilaterally decided by the management, without participation, then the support for the new choices will be very weak, and at the most a certain degree of resignation will arise to allow the change to run over them. The energy required from those involved to make the new structure work will probably not be supplied. It requires sound change management to prevent resistance and resignation on this point.
It could be an interesting study to find out which factors prevent this logical approach from being followed in practice. We will undoubtedly end up with the personality of the manager, the quality of the relationship with the consultants involved, and the pressure from above in the organization.
-          Dealing with complexity is not a matter of energy!
-          Participation without insight indeed leads to statements without perspective!
Hugo Der Kinderen
November 3, 2018



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