resulted in 79% total reorganization success when the effort

BCG’s OrgDesign approach requires going beyond structure
When structure, individual capabilities, and roles and collaboration are in alignment
— and tightly linked with a company’s strategy and sources of competitive advantage —
an organization is geared for performance
For additional information, please go to
www.bcgperspectives.com/people_and_organization
A video on how BCG helps clients improve their organization
with BCG’s OrgDesign capabilities can be found at
www.youtube.com/watch?v=8rxX8xAYcWo
BCG’s point of view on OrgDesign
Our designing for performance requires going beyond structure to look at other organizational
enablers in a systematic way – that is, to make choices around three key elements
Structure, to drive employee focus on strategic imperatives
Individual capabilities, to ensure the right talent is in the right roles
to enable structure
Role charters and collaboration blueprints, which define rules of
engagement to facilitate execution
To enable competitive advantage and create high-performance organizations, we use eight
levers around the three key elements, between elements and independently or in concert
Organization and
operating model
Support functions and
shared services
Delayering
Role charters and
decision rights
Degree of centralization
Centralized
Decentralized
Vertical alignment
Flatten
layer
Pool
resources
Segmentation of activities
Widen span of control
Specialized
Cascade
change
Horizontal alignment
Integrated
Work optimization
Team effectiveness
Talent and capabilities
High performance
behavior and culture
Tailored learning
program
Culture
Behavior
Career
path
High value
Low value
Six simple rules
Capacity / Diversity management
Our approach is fact based, supported by a robust suite of proprietary tools and rich
benchmarking databases behind these levers.
Context
Certain factors are critical for flipping the
odds of reorganization success:
Synchronizing design with strategy
resulted in a 5:1 success rate* when competitive advantage was
the top design priority
Clarifying roles and responsibilities
resulted in a 6:1 success rate* when a systematic role-clarity process was
applied
Deploying the right leaders and capabilities
resulted in a 74% total reorganization success when leaders were viewed
as highly capable
Designing layer by layer
resulted in a 4:1 success rate* when a cascade design was used
Minimizing risk in execution
resulted in 79% total reorganization success when the effort was
well executed
Source: BCG organization of the future—designed to win survey, conducted in 2011; n = 1,041 responses.
* The success rate is defined as the ratio of successful to unsuccessful reorganizations.
OrgBuilder
TM
OrgBuilder is a proprietary, patent-pending software
platform to support end-to-end reorganization.
OrgBuilder helps you master the critical factors that determine reorganization success.
OrgBuilder offers dozens of proven diagnostic analyses that provide a comprehensive
view of your organization’s structure, talent, and capabilities.
Progress towards targets
100
80
60
High potential talent
Identified
Target
41%
Placed
42
39
Span of control
Baseline
Designed
6
8
Identified
Talent
40
20
51%
Implemented
Layers
Average performance rating
Placed in org
Removed from org
3.8
1.7
Baseline
Designed
9
7
Example of a customized dashboard
OrgBuilder furnishes dashboards and reports to ensure that proposed changes are
aligned with strategic goals.
OrgBuilder
TM
OrgBuilder is a proprietary, patent-pending software
platform to support end-to-end reorganization.
OrgBuilder has a user-friendly interface that helps you model and design your
organization.
OrgBuilder facilitates your ability to select the right talent for the right roles as you
design and staff your organization...and keeps a full audit log of changes you make.
Complementary tools and databases
BCG’s OrgDesign approach offers tools and databases that can be used alone or with OrgBuilder
to maximize its impact on your company
Excellence in Support Functions
—Benchmarking
Activities-Based Optimization
FTEs and cost benchmarking for all SG&A functions
and activities from more than 900 available data sets
Activities analysis to illustrate fragmentation,
double work, and potential redundancies in activity
SmartSpan
Talent Planner
A tool that recommends the optimal span of control
for over 70 sub functions
Future leadership and talent gap
analysis and planning
Tal
e
nt
pla
nn
er
Optimal span of control
Roadmapping®
Strategic Workforce Planning
A strategic tool that enabels structuring and tracking of
a portfolio of initiatives within a large change program
Medium long-term workforce gap analysis and
planning in the context of strategy and external trends
Demand
G
a
p
Supply
For further information, please contact the OrgDesign team at
[email protected]
© The Boston Consulting Group, Inc. 2014. All rights reserved.