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By Staff Report
Sep. 7, 2011
Dear Makeover:
This is a great opportunity for you to create the systems and processes you need for the future. A redesign will help you look at many facets of your organization to consider how to position your organization for success.
You may want to look at the two sides of organizational power to determine which one best supports your requirements for managing marketplace demands. One is “distributed” and the other is “consolidated,” where most of the power is given to the top layer of the organization.
The “distributed organization” could be really appealing. With this type of company, information, decision-making, resources and accountabilities exist closest to your marketplace, customer or core work. Advantages include faster decision-making, quicker and more adaptable responses to customers, and an ability to manage quality at the point of origin and service at the point of customer contact. And because distributing power to the unit usually translates into distributing power to core workers, greater employee commitment and innovation follows.
Although this is not a complete description of everything that goes into designing an organization, it provides a look at many important elements.
|
Management Strategies |
||
| Consolidated | Distributed | |
| Decision-making style | Top-down (autocratic) | Collaborative, personal choice |
| Information control | Information controlled by management (access by permission) | Information shared across organization, open, unrestricted |
| Accountability | Leaders accountable for organization success, core workers held accountable for their specific tasks | Personal choice to be accountable for organization’s success of failure |
| Resources (such as access to money, equipment) | Resources held and controlled by management | Resources accessed and managed by core workers |
| Work tasks | Tasks narrowly defined and simple | Broad, complex tasks |
| Work process | Processes controlled by management | Controlled by core workers in response to business requirements |
| Customer service and quality control | Specific issues go to a specialty (such as transferring calls to customer service rather than whoever answers phone helping customer), but decisions, such as exceptions to a customer-service policy, are made by management | Decisions by core workers–e.g. whoever stumbles across problem can deal with it |
| Structure | Organization by function, geography, product, etc. | Matrix (multiple reporting relationships), networked (project team-based) or virtual (everything is contracted except for that which you’re superior) |
| Core employee skills | Specific to tasks/responsibilities (management is making key decisions, so they’re the ones that need the management skills) | Broad business, technical, management skills because employees are making more decisions |
| Rewards | Rewards related to tasks and individual performance | Rewards based on business outcomes and unit performances |
| Management style | The management wants to control processes and be consistent | There’s a premium on flexibility and innovation |
| Training | Training is specific to job responsibility | Broad business-literacy training, skill development |
| Oversight | High oversight, low supervisor/subordinate | Minimal oversight or self-managing teams, high supervisor/subordination ratio |
SOURCE: Kevin Herring, president, Ascent Management Consulting, Tucson, Arizona, March 1, 2005. Herring is co-author ofPractical Guide for Internal Consultants.
LEARN MORE:Acxiom Rebuilds From Scratch
The information contained in this article is intended to provide useful information on the topic covered, but should not be construed as legal advice or a legal opinion. Also remember that state laws may differ from the federal law.
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