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Economist The - Guide to Organisation Design : Creating high-performing and adaptable enterprises.

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Economist The Guide to Organisation Design : Creating high-performing and adaptable enterprises.
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5 Measurement; Choosing measurement tools; Measurement principles; Reflections on this case; Tools for this case; Summary; 6 Stakeholder engagement; Five steps of the stakeholder engagement process; Factors indicating stakeholder engagement; Reflections on this case; Tools for this case; Summary; 7 Leadership and organisation design; Formal leadership in organisation design; Informal leadership; Working together; Reflections on this case; Tools for this case; Summary; 8 Culture and group processes; Organisational culture; Group processes; Reflections on this case; Tools for this case.

9 Morphing not future proofing; Why morphing capacity is required; Building the capability to morph; Reflections on this case; Tools for this case; Summary; Notes; General; 1 Introducing organisation design; 2 Models, approaches and designs; 3 Organisational structures; 4 Planning and sequencing the organisation design; 5 Measurement; 6 Stakeholder engagement; 7 Leadership and organisation design; 8 Culture and group processes; 9 Morphing not future proofing; Appendix 1 Organisation design models; Appendix 2 Useful sources of information; Books; Journals, magazines and newspapers.

Business failure is not limited to start ups. Industry Watch (published by BDO Stoy Hayward, an accounting firm) predicts that 17,043 businesses will fail (in the UK) in 2006, a further 4 per cent increase from 2005. In America between 1990 and 2000, there were over 6.3 million business start-ups and over 5.7 million business shut-downs. Risk of failure can be greatly reduced through effective organisational design that encourages high performance and adaptability to changing circumstances. Organisation design is a straightforward business process but curiously managers rarely ta. Read more...

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GUIDE TO ORGANISATION DESIGN
Creating high-performing and adaptable enterprises

Naomi Stanford

THE ECONOMIST IN ASSOCIATION WITH PROFILE BOOKS LTD AND PUBLICAFFAIRS Copyright - photo 3

THE ECONOMIST IN ASSOCIATION WITH
PROFILE BOOKS LTD AND PUBLICAFFAIRS

Copyright The Economist Newspaper Ltd, 2007

Text copyright Naomi Stanford, 2007

First published in 2007 by Profile Books Ltd. in Great Britain.
Published in 2014 in the United States by PublicAffairs,
a Member of the Perseus Books Group

All rights reserved.
Printed in the United States of America.

No part of this book may be reproduced, stored in or introduced into a retrieval system, or transmitted, in any form or by any means (electronic, mechanical, photocopying, recording or otherwise), without the prior written permission of both the copyright owner and the publisher of this book, except in the case of brief quotations embodied in critical articles and reviews. For information, address PublicAffairs, 250 West 57th Street, 15th Floor, New York, NY 10107.

The greatest care has been taken in compiling this book. However, no responsibility can be accepted by the publishers or compilers for the accuracy of the information presented.

Where opinion is expressed it is that of the author and does not necessarily coincide with the editorial views of The Economist Newspaper.

While every effort has been made to contact copyright-holders of material produced or cited in this book, in the case of those it has not been possible to contact successfully, the author and publishers will be glad to make amendments in further editions.

PublicAffairs books are available at special discounts for bulk purchases in the U.S. by corporations, institutions, and other organizations. For more information, please contact the Special Markets Department at the Perseus Books Group, 2300 Chestnut Street, Suite 200, Philadelphia, PA 19103, call (800) 810-4145, ext. 5000, or e-mail special.markets@perseusbooks.com.

Typeset in EcoType by MacGuru Ltd
info@macguru.org.uk

Library of Congress Control Number: 2014932064
ISBN 978-1-61039-515-1 (EB)
First Edition

10 9 8 7 6 5 4 3 2 1

Acknowledgements

M Y THANKS TO the many people who have contributed directly and indirectly to this book. They include employees of many of the organisations I have worked with, colleagues who have reviewed chapters, friends who have tracked my progress and the family members who have lived with the process.

I am especially grateful to Hannah Barugh, Rosa Barugh, Roger Woolford, Rosie Stanford and Michael Stanford.

I would also like to acknowledge the good work of the Medical Foundation for the Care of Victims of Torture (www.torturecare.org.uk), to whom the royalties from this book are going.

Preface

I CAME TO write this book to answer the many repeated questions that people have about the constant reorganisations and restructurings that they willingly or unwillingly participate in during the course of their working life.

I currently work with both the initiators of these reorganisations and the people whose working lives are changed as a result of them. Both parties have similar concerns:

How do I know that the reorganisation is really necessary?

Is there any evidence suggesting that it is good to change things per se, or does it always depend on the specific change?

How do you know if organisation redesign has worked?

Is there any hard evidence about the absolute pros and cons of different structures?

Is there a step-by-step guide I could follow?

In my previous work, as an employee of several large multinational companies, over time I too had to reapply for my job, was laid off, had five new managers in the course of six-months, was relocated, had to lay off staff myself, and so on all as a result of various reorganisations. But during these experiences I also worked with the changes and helped people approach restructuring not with dread but with a certain sense of excitement and energy.

From these experiences I learned to think of organisations both in the more traditional way as whole systems that are inevitably shifting and responding as their context changes, and in the newer way as complex adaptive organisms evolving in order to survive. With these perspectives I discovered that there is a lot more to reorganisation than tinkering with the chart that represents the structure.

To answer the types of questions listed above (that I too had asked), I looked at all the components that contribute to organisational performance and found that organisational performance is more likely to improve if leaders and managers take a wider perspective than simply focusing on the structure: there is less rework, people are happier with the outcomes and it makes it easier to align all the organisational elements.

I also recognised that organisational alignment is always temporary, because things change. The design has to be adaptable; it must evolve and it must take into account the interests and views of all those with a stake in the business.

Lou Gerstner (former CEO at IBM ) spoke well when congratulating his staff:

In my eyes you stand tall. You did all this the milestones passed, the victories just ahead, and those far down the road. Thank you. Take a bow. Youve earned it. And, of course, I cant resist: lets all get right back to work because weve just begun!

As it is with milestones passed so it is with organisation design. One design gives way to the next. This book guides you along the path not the straight and narrow path of restructuring, but the interesting and much more productive path of organisation design. It is written for leaders and managers looking for practical advice on tackling the business performance issues that face them. Each chapter has information about the topic in hand, illustrative examples from organisations, a case study, and some practical and immediately usable tools. Note that all the examples given in this book report the situation as it was at that moment in time, and they are only partial: they serve as illustrations of points, not as enduring truths about any specific organisation. The case studies are all disguised and somewhat fictionalised examples of organisations I have worked with. The tools are all ones I find helpful and use regularly. I hope as you look through and read the book you will find hints, tips and approaches that you can apply to good result in your organisation.

Naomi Stanford

April 2007

1 Introducing organisation design

Design is a plan for arranging elements in such a way as best to accomplish a particular purpose.

Charles Eames, 1969

S TORIES ABOUT COMPANY start-ups run like this: We had a great idea. We got the funding. We hired people. We did well for a bit. Something happened. We fell apart. Unfortunately, 50% of start-ups do not survive beyond the first three years.

Business failure is not limited to start-ups. Industry Watch, published by BDO Stoy Hayward, an accounting firm, predicted that 17,043 businesses will fail [in the UK] in 2006, a further 4 per cent increase from 2005 and was not far wrong in its estimates.1 It cited a range of factors that affect the success of businesses (see Figure 1.1).

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