“What Works: Organizational Design” with Amy Kates, Organization Design Expert, Consultant, Educator, and Author of Five Books
Aug 13, 2024
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Amy Kates, an organizational design expert, consultant, educator, and author of five books, shares her insights into the intricacies of organizational design. She explains that it goes beyond mere org charts to truly shape human behavior at scale. Kates discusses the significance of matrix organizations and managing inherent conflicts. She outlines six common business challenges leaders seek to address through design and emphasizes the critical role that HR should—and shouldn't—play in the process.
Organizational design transcends mere org charts, focusing on shaping human behavior at scale to achieve strategic objectives.
Leaders face various design challenges like fostering innovation and achieving agility, requiring alignment with overall business goals.
HR's role is crucial in organizational design, facilitating discussions and ensuring collaboration while leveraging technology for enhanced decision-making.
Deep dives
Understanding Organizational Design
Organizational design is about shaping human behavior at scale rather than simply creating org charts. It involves determining the type of organization to build, the necessary culture, and strategies for competitiveness. Leaders must be aware of the capabilities required to achieve these goals, and how organizational strategies dictate design choices. The process emphasizes four key levers: structure, processes, metrics and rewards, and people practices, which work together to enhance organizational effectiveness and employee satisfaction.
Challenges Leaders Face in Organizational Design
Leaders often encounter various challenges that necessitate organizational design as a solution. These challenges include fostering growth and innovation, reducing excessive complexity and cost, adapting to new technologies, and achieving organizational agility. Additionally, factors like mergers and acquisitions and the drive for sustainability pose specific design considerations that need to be addressed strategically. Understanding these challenges helps leaders align their design efforts with overall business objectives.
The Importance of Clear Design Criteria
Developing and aligning design criteria is a critical step in the organizational design process. Design criteria help clarify the capabilities the organization must excel in to achieve its business goals. This requires identifying what can be done better collectively compared to competitors, fostering collaboration and informed decision-making. Establishing these criteria ensures that leaders make informed choices about the direction and structure of the organization, resulting in a more effective design process.
HR's Role in Supporting Organizational Design
Human Resources plays a pivotal role in guiding the organizational design process and ensuring alignment with business strategies. HR can facilitate discussions around the necessary trade-offs and consequences of design decisions, helping to clarify each leader's role in a matrix organization. A collaborative approach involves HR as both a process expert and a supportive partner, providing insights and facilitating the integration of various functional perspectives. Maintaining a focus on building effective organizational capabilities is essential for successful HR engagement in design efforts.
Future Trends and Focal Points for HR Leaders
As organizations evolve, HR leaders must remain attuned to emerging trends, particularly the integration of technology like AI in their processes. The concept of 'augmentation' embodies utilizing technological tools to enhance decision-making and optimize HR functions without replacing the human element. HR leaders should focus on aligning their functional architecture with business needs while fostering a collaborative environment that enhances performance. This forward-thinking approach positions HR to effectively support organizational design initiatives and drive overall business effectiveness.