“Our organisational chart has developed historically and hasn't been fundamentally adjusted for quite some time. We're unsure whether its structure is still up-to-date or supports our goals. How can we proceed systematically with its analysis and potential modification?”
Dr. Matthias Walter, Managing Director of the Augsburg-based consultancy Blue Advisory GmbH and expert in organisational transfer, shares his insights:
For us as external consultants, a company's organisational chart provides an excellent starting point for a project, as it reveals a lot about the business and allows us to derive some relevant information. This goes beyond merely reading names and responsibilities and offers valuable insight, such as which issues are prioritised within the company or which areas are linked by content or personnel. For instance, which topics are addressed through advisory positions? Are there dedicated organisational units for specific issues? If not, why?
We often hear statements like “the organisational chart isn’t very informative” or “we haven’t done much with it in recent years.” It also becomes intriguing when the structure doesn’t immediately make sense and raises more questions than answers.
Structure and system are essential
It's at this point that my recommendation comes into play: Approach the review and possible adjustment of your organisation in a structured and systematic way! For example, consider principles for a future-proof organisation (or derive them from best practices) and evaluate your current organisational structure against these. Such a principle could be that decision-making and delegation chains are as short as possible and follow a consistent and traceable scheme, or that the organisational structure is independent of specific individuals. The clarity of the organisational chart for internal and external parties mentioned above could also be a principle. When formulating these principles, also keep in mind potential changes in the company (such as new strategies, products, markets, etc.).
Scoring models can be helpful
Then, systematically assess the current level of fulfilment of these principles (for example, using a simple scoring model). As a result, you'll identify areas for action (“where do we need to act with what importance?”) as well as aspects where you are already well-positioned. Develop organisational variants that address the identified areas for action and evaluate these too based on the scoring model. This way, you can roughly assess the (expected) improvements through organisational changes.
It's important to note that in such organisational transfers, there will always be justified exceptions to a “theoretical” principle. This isn't a problem, as long as these exceptions are carefully documented.
How the transfer phase works
Once the new organisational structure is set and approved, the transfer phase begins. Here too, you should proceed systematically, gathering and tracking all the issues to be considered (“from new door signage and system permissions to new employment contracts and processes”) as part of a “Transformation Board.”
Involve relevant stakeholders early and seek support
A critical success factor, alongside the outlined structured approach, is the involvement of relevant stakeholders at the “right” time – this is essential for gaining important acceptance. While the general framework for the future organisation will probably be discussed in a smaller (leadership) circle initially, it’s recommended to successively involve more management levels as you delve into details. Transparent communication with employees is also a vital factor.
I also suggest seeking external support (for example, from a consultancy). This is advantageous because the evaluation of the organisational principles can be enhanced with valuable external perspectives, and additional incentives can be incorporated, for instance, during the development of organisational variants.
Ultimately, it’s clear that every organisational transfer is unique, as every organisation has its inherent specificities. However, through the described and largely universally applicable approach, the necessary structure can be established – and the inclusion of external support adds an extra layer of objectivity.
(Source: B4B-Schwaben)
