Changing a company’s organizational structure

Have you thought about the origins of your company’s operating model?

A company’s existing operating model is frequently a derivative of decisions made by management personnel over the course of years. It was probably influenced by the competences of the individuals holding management positions, which determined the scope of responsibilities of the individual sections and departments. As a result, the existing organizational structure may be far from optimal for current conditions. 

What if you are planning to implement a new strategy? 

An existing, non-optimal organizational structure may hamper the implementation of a new strategy, or even lead to its overall failure. First the company’s operating model needs to be updated, including its organizational structure.  

Why might you encounter difficulties when introducing changes to an organization? 

• People are, generally speaking, not fond of change. Convincing employees to get behind the new solutions will require the consistent application of change-management tools. 
• Employees may feel threatened. If some of their duties are reassigned to other employees, they may interpret this as a threat to themselves. It will be crucial to be able to skilfully answer the question of what benefits the planned change will bring.   
• Some people feel that if something has been functioning in a certain way for a long time, it should not be altered. Improving a company’s operating model takes courage. Changes should be implemented at a time when they represent an opportunity, not once it is already a necessity.