Metamorphosis Management Group frameworks & approach to working with leadership team, and setting up effective organizational design. The approach - can be described in these slides. The WORK - to engage leaders & stakeholders to change their organization - you'll need to experience directly.

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CONTACT:
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Developing & Implementing
Effective Organizational Design
Overview & Considerations
Strategy | Organization | Execution
Change that Matters. Results that Count.™

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AIProcessRevis021805v2Organizational Design_MMG… .ppt
Legacy Organizations Often Carry With Them Both
Visible and Hidden Costs…
Failures of Performance… and erosion of ability to keep pace with
increasing performance demands
Redundant staffing & services, & inconsistent messages to customers
• Organization has become highly fragmented & dispersed
• Coordination / governance mechanisms absent
Excessive layers, narrow spans of control…
mean bureaucratic build-up, with slow “bottle-necked” decision making
• Huge potential for stripping out costs & addressing root causes of
organizational dysfunction & obesity
Institutionalized layers of management, causing micro-management & lack
of accountability
• Work not delegated to appropriate levels.
• From outside, organization looks bureaucratic or incompetent … but
the real culprits are ill-defined accountabilities & incomplete
performance measures
• Redundant levels & approvals enable (or force) staff to “pass the
buck”
How Does Your
Business
Structure Drive
(OR Limit)
Performance?

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What is Organizational Design?
Good organizational design is the “full-system” plan that defines:
• Overall organizational goals and strategy,
• The grouping and assignment of tasks,
• The processes and systems by which tasks get done,
• The structuring of functions, jobs and roles,
• The relationships among organizational units (the cross-organizational linkages
among business units and functions),
• The assignment of resources,
• The forms of decision-making and governance,
• The focus of managerial behavior, time and attention,
… and other key elements that enable an organization to marshal capabilities, and
efficiently and effectively deliver needed results
A good organizational design comprehensively addresses the
key performance issues

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Organizational Practices Evolve During Periods of Growth
As Organizations Solve “Earlier Problems”, the Next Challenges Are Created
“Evolution and Revolution as Organizations Grow”, Greiner, Harvard Business Review, May-June 1998

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Organizational Practices Evolve During Periods of Growth
As Leaders Solve “Earlier Problems”, They Create New/ Next Challenges
Category
Phase 1:
Creativity
Phase 2:
Direction
Phase 3:
Delegation
Phase 4:
Coordination
Phase 5:
Collaboration
Management Focus Make & sell Efficiency of operations Expansion of market
Consolidation of
organization
Problem solving &
innovation
Organization Structure Informal Centralized & functional
Decentralized &
geographical
Line-staff & product
groups
Matrix of tear
Top Management Style
Individualistic &
entrepreneurial
Directive Delegative Watchdog Participative
Control System Market results Standards & cost centers Reports & profit centers
Plans & investment
centers
Mutual goal setting
Management Reward
Emphasis
Ownership Salary & merit increases Individual bonus
Profit sharing & stock
options
Team bonus
Resulting Crisis Leadership Autonomy Control Red tape Psychological saturation
Observations about
Company Evolution
What phases Have Been Evident at Your Organization?
What Worked Well/ Did Not Work Well In Each One?
“Evolution and Revolution as Organizations Grow”, Greiner, Harvard Business Review, May-June 1998

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AIProcessRevis021805v2Organizational Design_MMG… .ppt
The “Right” Way to Structure an Organization Depends on the Set of
Linked Elements Required to Accomplish its Top-Level Goals
Style
Top-
Level
GoalsSkills
Systems
Structure
Staff
Strategy
The people in the organization,
in corporate demographics, not
individual personalities.
Org chart/ descriptions showing who
reports to whom and how tasks are
divided up and integrated.
The coherent set of
actions aimed at gaining a
sustainable advantage
over competition.
How managers behave, through
invested time, attention, and
symbolic actions.
Capabilities possessed by the
organization as a whole as
distinct from the individuals.
Fundamental ideas, guiding concepts,
values and aspirations, sometimes
unwritten, beyond formal statements
of corporate objectives.
The processes and
procedures through
which work gets done.
Waterman, Peters & Phillips, “Structure is Not Organization,” Business Horizons, June 1980 - modified
Cross organizational linkages – defined & implemented - tie these
elements together

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Implementing a Robust Organizational Change Builds On The Linked
Design Elements for a Strong Foundation
Current State
Where are we? How do we know? What’s our fact base?
Desired Future State
Top-Level Goals (incl. Vision & Values)
Strategy
The Need for Change:
Complications
Systems & Processes
Structure
Implementation
Reinforcement
(Style, Skills)
Source:
What is the
Current State of
this Foundation? Staff

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Reinforcement: Organizational Leaders Define & Model the
New Organization and its Culture In Six Ways…
Members of organizations watch leaders to see...
1. Where do leaders focus systematic attention?
2. What (results/ behavior) do leaders measure & reward?
3. How do leaders frame & respond to critical incidents?
4. What are practices/ patterns around who gets hired,
fired, promoted?
5. How do leaders allocate resources?
6. What do leaders consciously model, teach & coach?
Schein, Edgar, Organizational Culture & Leadership, 1992.
How do
leaders
emphasize
and
reinforce
the overall
structure
and
culture?

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Important Stakeholder Groups Each Have a Role to Play in the
Design & Implementation of An Organizational Design
Leader & Exec Team
1. Determine the Design Framework
What organizational capabilities do we
need to deliver on the strategy?
Current State
Assessment
+ Inventory: Vision, strategy, values;
Next-period and future-state business
objectives; organizational demographics; …
•What is the gap between where we are
and where we want to go?
2. Design the Organization…
Structure
What structure and org
roles meet strategic
design criteria?
Processes/ Lateral
Capabilities
How will work get
coordinated & integrated
across business units?
Reward Systems
How do we measure &
reward performance at
individual, team and org
levels?
People
How do we select &
deploy people into new
roles, manage their
performance and support
their development?
3. Develop Specific Details/ Plans…
By function and business unit, test/ assure the pieces all work together
4. Implement the New Design…
Develop and rollout a transition plan
Leadership Team
Steering Committee/
Work Groups
Whole Organization,
Each Org Unit
Galbraith, Downey, Kates, Designing Dynamic Organizations, 2002. (modified)

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Toolkit – Samples Available on Request
Vision/ Mission/ Strategy/ Objectives
Change Management/ Strategic Communications
Culture Assessment and Intervention/ Shaping
Program Management and Project Execution
Process Mapping/ Improvement
Risk Assessment/ FMEA
Lean Improvement/ Non-Value Added Reduction
Failure Mode Assessment/ “Pre-Mortem”
Organizational-Functional Design/ Development
• Organizational Design/ Implementation
• Human Resources –
Job Profiling/ Planning, Compensation evaluation/ planning/ design
• Service Level Agreements
Discussion Draft - Do Not Circulate

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How Will Your Organization Develop & Implement Smart Design?
If you want to build a
ship, then don’t drum up
men to gather wood, give
orders, and divide the
work.
Rather, teach them to
yearn for the far and
endless sea.
-- Antoine de Saint-Exupery
Metamorphosis Management Group helps leaders execute strategy, build organizations,
and create results. We bring our years of experience to complement yours.
We are former managers, operators and consultants—who have worked as senior leaders in
general management, business development, sales & marketing, organizational
effectiveness, operations and consulting.
We partner with clients to get top- and bottom-line results, and to build/ develop client leaders
– in context, on real business problems in their organizations, with their peers/ senior team
colleagues. Our core work is supporting leaders: helping to enlarge personal capabilities,
engage organizations, and create desired futures.
Our clients achieve objectives through a structured process of engagement:
• Leaders set and communicate direction and targets
• Working teams
• … Define clear thinking – shared business logic, terms definition and operating-model
“languages”
• … Surface data – just the right amount – to support effective analysis and prioritization of the
opportunities in your “risk portfolio”
• … Drive decision-making processes through facilitated organizational-management and
workforce engagement
• Generate prioritized sets of options
• Create effective organizational implementation, execution, and change – on time, on budget

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AIProcessRevis021805v2Organizational Design_MMG… .ppt
Contact Us
Evan Smith
evan@metamg.com
http://www.metamg.com
info@metamg.com
914-613-3187 ofc