2. Many books describe how to choose a high-level organizational design model and staff the top 1%
of executives. This is not one of those books.
This book is for those who are responsible for a reorganization process. And not just
responsible for reorganizing the top 1%, but for the whole organization, down to the last
branch. If you need some insight into the deep complexities of designing and staffing a
complete organization optimally, we hope you will find some help in these pages.
At BrightArch, we have built our OrganizationWeaver software based on the insights in this book.
Whether or not you need a tool like OrganizationWeaver, we wanted to share some general
principles that can help you weave a stronger organization. We hope this can be the start of a
deeper discussion about innovative reorganization practices. Join in the discussion on Twitter at
twitter.com/brightarch.
3. Table of contents
03
ChooSing a Solid method 04
develoPing the organization deSign 06
liStening to everyone’S PreFerenCeS 08
StaFFing the right PeoPle in the right joBS 12
unloCking value For all StakeholderS 14
diSCuSSion on SuCCeSS, Failure, and hr’S role 16
organizationWeaver 20
our viSion and guarantee 24
OrganizationWeaver is the efficient way to design
and staff large organizations transparently.
5. Choosing a solid method
05
BrightarCh’S method
DEVELOP THE LISTEN TO STAFF THE
ORGANIZATION EVERYONE’S RIGHT PEOPLE
DESIGN PREFERENCES IN THE RIGHT
JOBS
Restructuring a large organization is a highly complex task that requires a solid method.
When selecting a method to follow, closely consider if it has these three qualities:
01 The process of
designing the
organizational
structure should be
02 Processes should
be transparent,
robust, and have
a clear division of
03 Employee
preference data
has the potential
to be very valuable,
seperate from the responsibility. or to be a process
process of staffing breakdown.
the organization. The data should
be harnessed
optimally.
6. 06 Choosing a solid method Developing the organization design
DEVELOPING
THE ORGANIZATION
DESIGN
Choosing a solid Method, Part i
When ShaPing a neW organization,
BuSineSS Strategy ComeS FirSt. it deFineS
the BuSineSS areaS, hoW Big they Should
Be, and their reSPonSiBilitieS.
But Without a Clear imPlementation
ProCeSS to Create a detailed deSign,
even the BeSt Strategy Can Fail.
7. Choosing a solid method Developing the organization design
07
For every strategic In order to be able to answer those questions,
decision, there are ripple it’s important to track and measure each
effects throughout the decision during the detailed design. It’s the
organization that need only complete way to see if the detailed
to be understood. Are design is following the strategy.
we staffing up or down In practice, a detailed design consists mostly
in the right places? of creating, documenting, and approving units
Are we distributing and positions, one by one, in a structured
competencies optimally? pattern. The graphic below explains a
high-level process for completing each
organizational unit in the new structure.
the organization deSign
You are
Gain approval
assigned to be Create a unit
for unit
the author of a description
description
business unit
Create general
Gain
Assign authors requirements
approval for
to next level for next
requirements
level units
With the Organization Design module of OrganizationWeaver, designated teams from
each business area can work together to simultaneously drag and drop their way to a new
organizational structure. All of the essential data needed to create an optimal organization
is at the project teams’ finger tips. A template system helps reduce work significantly.
8. 08 Choosing a solid method Listening to everyone’s preferences
Choosing a solid Method, Part ii
9. Choosing a solid method Listening to everyone’s preferences
09
three reaSonS to Pay attention to every Single emPloyee
01 02 03
IT’S BETTER FOR IT’S BETTER FOR IT’S BETTER
EmPLOYEES THE PROCESS FOR THE NEW
Knowledge workers The best processes
ORGANIZATION
expect to be heard, not accomplish complicated
merely allocated. By giving tasks in an efficient manner Organizations are stronger
employees a reason to with minimal risk. What’s when each individual is
take charge of their careers more complicated and high- confident in his or her
and engage in the change risk than figuring out where position. There is no
process, it’s easier for them thousands of employees centralized way to build
to commit to the change. should be staffed? By this confidence; it has to
On the other hand, if high enlisting each employee come from employees
levels of uncertainty and to help define their skills describing where they
low levels of engagement and career preferences, can contribute the most
persist, employees often this complicated process value. If this detailed and
lose interest and start to can be handled in a much targeted information is
look for other opportunities. more efficient manner and not used to make staffing
reduce the risk of alienating decisions, the strength of
valuable employees. the future organization
can be reduced radically.
10. 10 Choosing a solid method Listening to everyone’s preferences
Unfortunately, the process of listening to employees and
incorporating their preferences into final decisions is often
pushed to the side. This is due to time constraints and an
inability to handle the large flood of complex data involved.
If the change team fails to make it a priority to listen to
employees, politically motivated decisions can start to
undermine trust throughout the organization. One way to
avoid politicizing the process is to handle decisions centrally
and based on merit. This is difficult to arrange without
supporting processes and tools, but is highly preferable
to the alternative of allowing decentralized committees
to make sub-optimal decisions behind closed doors.
With the Employee Preferences module of OrganizationWeaver, employees can create
prioritized lists of the positions they are interested in using a web-based solution.
At the same time, they can provide other relevant information about their careers.
11.
12. 12 Choosing a solid method Staffing the right people in the right jobs
STAFFINGTHE
RIGHT PEOPLE IN
THE RIGHT JOBS
Choosing a solid Method, Part iii
an organization Cannot ColleCtively
move ForWard until all StaFFing
deCiSionS have Been Settled
and individualS Can reFoCuS on
meeting StrategiC goalS.
13. Choosing a solid method Staffing the right people in the right jobs
13
The staffing process is one of the most requirements and the candidates’ skills and
intense and sensitive parts of the project. preferences.
There are many risks to avoid, and many A defined workflow is required to work
requirements to meet. However, if the through this complicated staffing puzzle.
strategic organization design has been Ideally, the workflow should minimize
developed properly, and employee unnecessary tasks while maximizing
preferences have been gathered, everything adherence to staffing principles. Done
is in place to efficiently make optimal right, all of the candidates can be evaluated
staffing decisions. equally and fairly. True success in a staffing
To fit the right people in the right jobs, process can be measured by company
the priorities of the company and each performance and employee satisfaction. For
employee need to be considered. This is a quick gauge of success, check how many
accomplished by evaluating candidates employees were staffed to their highest
for positions based on pre-defined priority positions.
With the Staffing module of OrganizationWeaver, thousands of positions can be staffed
based on thousands of variables. Our advanced algorithm is able to simplify these
complexities by enhancing the human decision making process. Keeping everything
transparent and auditable ensures that meritocracy trumps favoritism.
14. 14 Unlocking value for all stakeholders
all merger integration and
reorganization ProjeCtS Should take
a PeoPle FirSt aPProaCh. But merely
having thiS goal iS not enough to unloCk
the ConSideraBle value PromiSed.
15. Unlocking value for all stakeholders
15
One of the biggest mental hurdles to overcome in Stakeholder value
large organizational transformations is to recognize
that building a new organization is a highly Employees are more
intricate organizational engineering problem. It engaged, less likely to
requires balancing multiple variables for every little leave, and more confident
decision. It also requires that decisions be made in in their career paths.
the right order based on relevant information.
This complexity results in one of the most undisputed Managers are able to finish
facts of business: Organizational transformations tend to fail. the change process quicker
Research, attempting to explain these failures, and with a better result.
normally points to cultural issues, poor communication
planning, or lack of employee engagement. Owners are able to
In addition to those factors, there is a lack of focus on strategic goals
dedicated processes and tools to make decisions instead of worrying about
efficient, optimal, transparent, and trustworthy. retaining key talent to
By taking a people first approach that also execute those goals.
harnesses dedicated processes and tools, the
risk of project failure is reduced and the power
of your new organization is amplified.
16. 16 Discussion on success, failure, and HR’s role
DISCuSSION
ON SuCCESS,
FAILuRE, AND
HR’S ROLE
niColay Worren iS a
SPeCialiSt in organization
deSign With 12 yearS oF
exPerienCe From ComPanieS
SuCh aS Pa ConSulting
grouP and aCCenture.
17. Discussion on success, failure, and HR’s role
17
Why do WorkForCe integration ProjeCtS “the main goal
and reorganizationS So oFten Fail? Should not Be to
Re-design processes are challenging projects, particularly take a deCiSion aS
in large and complex firms. In addition to the core task of
FaSt aS PoSSiBle
But to minimize
identifying the right structure, which can be challenging in
imPlementation
itself, one needs to deal with the inevitable politics that result
time and CoSt,
from having to alter individual roles and responsibilities. WhiCh oFten
The way one approaches the re-design process is critical. requireS an
The main goal should not be to take a decision as fast as inveStment
possible but to minimize implementation time and cost, oF time in the
which often requires an investment of time in the planning Planning PhaSe.“
phase. To minimize implementation time and cost, you need
buy-in from stakeholders and that can only be achieved by
creating a fairly transparent and open process where people
take part in a dialogue about criteria and alternative solution
concepts. Of course, although a new model may be right for
the company, not everyone will benefit from a change and
reorganizations always carry a risk of losing some key people.
What are the high-level ChoiCeS When
deSigning a neW organizational StruCture?
In most organizations, you have three basic types of functions: Sales
or market units (those that sell and market products or services),
product units (those that develop or manufacture products or
configure and deliver services), and internal service providers (such
18. 18 Discussion on success, failure, and HR’s role
“the manner as HR, IT, and accounting). One key choice is to determine
in WhiCh the whether to choose one main grouping criterion or try to
StaFFing ProCeSS combine these different dimensions. I increasingly see
iS ConduCted Can examples of companies trying to create multi-dimensional
inFluenCe the structures, like having product and sales units at the same
quality oF the level. Instead of the traditional matrix, there are other ways
organization of linking the product and sales units together without the
deSign.” need for people to work for more than one boss. But in some
cases selecting one main criterion (e.g., a product based
organization or a geographical structure) still makes sense.
It depends on what the strategic intent of the company
is and also on the size and type of work processes.
What iS the relationShiP BetWeen
the deFinition oF StruCture and
the SuBSequent StaFFing?
These processes are interlinked, because if you
have an effective design process that produces a
well-defined “blueprint” for the new organization, it
will make the subsequent staffing much easier.
More surprisingly, perhaps, the manner in which the
staffing process is conducted can also influence the quality
of the organization design! People are often appointed
to new positions by higher level managers. Yet I generally
recommend an explicit internal staffing /recruitment process
where people can apply for new positions. If employees
know that management will carry out the staffing in an
open and transparent way, and that they can express their
19. Discussion on success, failure, and HR’s role
19
preferences about new roles, they are likely to view the “one intereSting
re-design process more favorably and see opportunities in trend iS that
a new structure. And that, in turn, may make them more Some ComPanieS
willing to participate actively in finding the right design. are aPPointing
In terms of sequencing, it’s a fundamental principle in a direCtor oF
this field that structure should come before people. It was ‘organizational
Elliott Jaques, a Canadian organizational psychologist, eFFeCtiveneSS’,
who pointed out that an organization isn’t a collection oFten rePorting
of people, but rather a set of roles. The point is not to
to the SvP
oF human
look at who is in the organization today. You must first
reSourCeS. thiS
ask, “Do we have the right organizational structure given
may Strengthen
our work processes and our strategy?” That leads to hr’S aBility to
requirements for individual roles. You can then fill these Play an aCtive
roles with actual people. By the way, when you do that, Part in SuCh
you only give people a temporary “jacket”. Next time ProCeSSeS.”
around they may be asked to put on another jacket.
What iS normally the role oF the
HR FunCtion in theSe ProCeSSeS?
In staffing, HR normally plays an important role in planning
and facilitating the process. In terms of designing the
overall organizational model, HR is involved in some
companies but not in others. Many say that HR should
get more involved. I think so too. One interesting trend
is that some companies are appointing a director of
‘Organizational effectiveness’, often reporting to the
SVP of Human Resources. This may strengthen HR’s
ability to play an active part in such processes.
20. 20 OrganizationWeaver BrightArch
organizationWeaver iS the eFFiCient
Way to deSign and StaFF large
organizationS tranSParently.
21. OrganizationWeaver BrightArch
21
Defining high-level organizational properties is
a challenge that has long been acknowledged
as important and demanding of rigorous effort
by experts in business and academia.
However, some challenges (like the detailed
composition and staffing of a large organization)
are just too complex for any small group of project
members to conceptualize and process. Since they do
not directly effect top management, these challenges
have not been recognized in the same way by experts.
Now, the complexities of defining the detailed
composition of an organization can be handled with a
proven method and set of tools: OrganizationWeaver.
OrganizationWeaver gives project members process
algorithms that split every problem into smaller decision
points that are supported by relevant data. This way, it
is possible to greatly reduce the time between the start
of an organizational transformation and an aligned
organization that can focus on strategic goals.
22. 22 OrganizationWeaver BrightArch
a ComPlete SyStem
module
01 Organization Design:
Any number of project members can work simultaneously to drag and
drop their way to a new structure that can meet strategic goals.
SuPPorting FunCtionality eaSily dePloyed
Flexible and easy-to-use reporting, e-mailing Import/Export data from an ERP
and employee hotline user interface. or HCM system of choice.
Choose a hosted version or install locally.
No long term commitment – plug out
when the change process is complete.
23. OrganizationWeaver BrightArch
23
module module
02 Employee Preferences:
Allow your people to take charge
of their careers and engage
in a transparent process.
03 Staffing:
Match company needs with
employee preferences in
an optimal way. Finish the
change process quicker and
get back to business.
dediCated SuPPort SeCurity
Technically smooth implementation with End-to-end encryption.
full onsite support throughout the project.
Data is stored centrally, never
We also offer project management support on users’ computers.
through our experienced consultants.
Granular access control system.
24. 24 Our vision and guarantee
OuRVISION
Through OrganizationWeaver, we will contribute to significant
performance improvements for our customers. We will help build
stronger organizations by ensuring that the right people are
assigned to the right positions. We will implement transformations
that can be exciting opportunities for employees, rather than
threatening changes. We will make reorganizations faster and
more reliable than those that use traditional methods.
OuR GuARANTEE
We strongly believe that OrganizationWeaver provides superior
value. If you disagree, and OrganizationWeaver does not perform
as described, we will refund the entire cost of the software.
Please refer to our website for details:
www.brightarch.com/guarantee
25.
26. 26 Quick reference guide
QuICk REFERENCE GuIDE
engaging emPloyeeS during BalanCing
tranSFormational ChangeS ContradiCtory
Ű Communicate and implement a fair staffing process ideaS
early. It will set the tone for all subsequent changes. Ű Be transparent and secure
Ű Keep as much transparency as possible. Share the staffing Ű Be careful and fast
principles and the criteria that people will be evaluated on. Ű Respect organizational needs
Ű Create consistent job descriptions and share with everyone. and individual needs
Ű Ask everyone about their personal career Ű Be consistent and flexible
priorities and preferences.
Ű Prepare as much as possible before the transformational
change has been announced. The earlier you can
communicate a fair process, the better.
Ű Communicate effectively and personally
at every step of the process.
Ű Track the daily progress of each project team.
Ű Keep the project as small as possible so that the
organization is able to focus on daily business.
Ű Work intensely. Organizational change processes restrain your
business. Swift implementation serves everyone involved.
Ű To avoid legal issues, keep sensitive data secure
and maintain an auditable trail of decisions.
www.brightarch.com
