What challenge(s) do our clients face?
Business strategists and corporate leaders face a unique era where the business landscape is being disrupted by radical digital transformation and new business models are overlapped with an important generational change in consumers and employees
To thrive in times of change, organizations need to continually evolve their business model and strategies. This may be through the development of new products/services, expansion to new geographies, or integration of new technologies for example. However, in the shift towards these new Organizational model Governance Framework and strategies, old ways of working may no longer work. Indeed, they may in fact hinder progress and generate in efficiencies.
Integration believes that organizational design and the governance model are key aspects to support the organizational strategy and culture and, for this reason, they must evolve and be reviewed whenever there is a change in these areas. Depending on the size of the change, revision of the organizational design may be necessary within the entire organization or in specific business units and/or areas.
However, it is not a trivial task to define an organization model that guarantees efficiency in the processes and decision making of a company. Many challenges and trade-offs need to be evaluated, such as:
- Efficiency and flexibility in the day-to-day vs maintaining visibility and control
- Integration vs autonomy and associated authority limits
- Pace vs risk management
- Career paths vs project orientation
- Matrix vs siloed structures in team cooperation
- Coexistence of traditional structures with flexible and agile teams
- Multifaceted roles vs specialized roles
How do we help?
Our methodology helps our clients to define an efficient organizational structure, that supports decision making and is aligned with culture and business strategy.
Finding the correct balance considering these trade-offs requires a tailor-made solution. We believe that each organization has a specific DNA and is made up of unique individuals and teams and has specific needs. There is no ‘one size fits all’ package of deliverables in this context and so we help organizations answer varied questions such as:
- Which organizational model is best considering the strategy defined?
- How should the business portfolio be organized? Which areas must be stand-alone and which areas must be part of a shared services center?
- What kind of governance is required in this new organizational model? Which rituals need to be established?
- What should the decision-making model and authority limits be?
- What profile and competencies are needed for each position?
- What should be the size of my organization and the ideal span of control of each area?
- What are the steps to conduct the organizational structure transition? How can I be prepared for the main risks and challenges?
What are the benefits?
- Establishment of an organizational model that enables the business strategic objectives, reducing internal friction and improving productivity.
- Greater alignment between stakeholders, structure, processes and governance, increasing the likelihood of delivering the desired/planned business results.
- A clear and efficient decision-making model
- Improvements in both direct and indirect costs
- Ability to leverage hybrid structures, which take advantage of the benefits of merging more fixed/traditional structures, with more flexible/agile structures
- Clarity of competencies required to support the strategy and sizing for each organizational function
- Reduced resistance during the organizational model transition as a result of clear communication and detailed transition planning adherent with client reality
How does it work?
Our methodology goes through 4 steps:
INTERNAL AND EXTERNAL DIAGNOSIS
Understand the company’s strategy and current operations to identify any adjustments needed in the current structure
Define a high-level organizational structure based on key requirements of the new strategy, e.g. speed to market, innovation demands etc.
OPERATIONAL DESIGN AND GOVERNANCE MODEL
Detail the policies, governance rituals, personnel requirements etc. needed to deliver on the company’s strategic goals
TRANSITION PLAN AND IMPLEMENTATION
Organize a timeline for transition and change managementthat’s both implementable and in line with the reality at hand
We start our approach with a deep understanding of the company strategy and culture and of what motivates the organizational adjustments. This gives us the key drivers which inform our approach e.g. If the company needs to strengthen its digital capabilities to address a new market, we may look to the capabilities which are currently missing and whether a new area is required to centralize product innovation. Our ability to connect with other experts across Integration’s practices is a key differentiator in this context.
From here we define, alongside the client and considering its context, the organizational architecture and governance model in the detail level that is needed; designing rituals, committees, authority limits, macro policies, procedures, structure sizing, job descriptions etc. This is followed by a pragmatic implementation plan to actually embed these changes in reality and without disruption to the company’s operations.
SUCCESS STORIES
CHALLENGE
A large Financial Sector organization (supporting more than 100,000 direct and indirect jobs) was undergoing an expansion process driven by market shifts and changing customer habits; and was looking to new product platforms and customer segments.
They were transitioning from being a mono-product company serving a single client segment into a multi-client and multi-product one; and asked Integration to support with a new organizational model to help them with this new dynamic.
APPROACH
Based on the understanding of the company’s strategic plan and the identification of key success factors, Integration helped define a ‘customer-centric’ organization model that would help drive the company’s expansion into new clients and products.
Alongside the client, we defined the necessary business units and the governance between them; detailing for example, the information exchange processes and decision-making limits, ensuring the necessary autonomy and compliance of each area and business unit (key for this regulated market).
We also designed a 3-phase transition plan which aimed to ensure no harm to business continuity, going first through hierarchical changes, into structure adjustments and finally with professional/job profile adjustments.
RESULT
The direct result was a faster decision-making process, the independence between structures to enable the expansion of the company to new segments, and the clarity of roles and responsibilities, which brought a higher service level of corporate areas and helped to increase the time to market.
TALK TO US
Dhruv Patel is an engagement manager at BMCS and has been working since 2019 in the Argentinean office in the Supply Chain Practice.
Dhruv Patel
ENGAGEMENT MANAGER
Aarush Gandhi is a Manager at BMCSwith significant experience in Supply Chain and Implementation having worked across both of BMCS practices.
Aarush Gandhi
Manager
Nikhil Singh is a Director at BMCS and has been working since July 2011 in the practice of Marketing & Sales. Prior to BMCS, Jonathan was an Analyst
Nikhil Singh
DIRECTOR
Keshav is a Manager in the Marketing & Sales practice. Originally from Columbia, Luis is an entrepreneur at heart, and has worked in several start-ups in Colombia, receiving his MBA
Keshav Sinha
ENGAGEMENT MANAGER
Chaitanya Varma is a Financial Controller at BMCS and has been part of the Finance area since January 2011. Her experience includes financial analysis.
Chaitanya Varma
FINANCIAL CONTROLLER
Rishi Sinha is a Specialist on Supply Chain Strategy at BMCS, working since 2010 at the firm. He has over 20 years of experience in Supply Chain collaborating with companies
Rishi Sinha
Specialist
Knish is a Managing Partner and has overseen the Mexico City office since 2008. Prior to BMCS, Gerard accumulated 25 years of experience in executive positions at L’Oréal
Knish Raj
Partner
Rajbir is a senior manager I within the Implementation practice at BMCS, and has been part of the team since July 2011. His experience includes leading transformational projects.