Many companies seek to transform their organisation by focussing on structural dimensions such as processes, operating model or organisation design. People-related dimensions such as the organisation culture, purpose and ways of collaborating tend to get overlooked. In this, the first in a series of articles, we argue that it is important to approach transformation holistically, considering structural and people side of change with the same importance and efforts.
The world of work is changing at ever-increasing pace. Companies must respond to an array of challenges. New market developments and customer requirements, remote and flexible working, the impact of new technologies and AI, a scarcity of talent and the need to create work cultures for a new generation of workforce seeking and expecting purpose and inclusion are some of the challenges we might face as a company. In a nutshell, an organisation is effective only if its purpose and strategy (how we create value), culture (how we work together) and operating model (how we run the business) are in sync.
The challenge is that in many cases, organisation struggle to align their strategy, operating model and culture. Mostly, they focus on their strategy and the structural elements of the operating model but forget about people-related factors such as culture. The fact is that these structural and people components are interdependent.
The results of this one-sided focus can be drastic and costly:
- the company lacks direction and vision;
- it is slow to bring products and services to market;
- has problems with collaboration, unclear roles and accountabilities;
- and employees who are disengaged and frustrated.
The root problem: strategy, structure and culture are not aligned
In our work with clients, we experience that after spending hours designing a new, seemingly future-proof organisational structure adapted to the requirements of the new world of work, employees still work in old ways. Why is that? What makes an organisation effective?
Having an effective organisation in place enables employees to fulfil their roles, work well together, execute the company’s strategy and fulfil its purpose. This enables the company to create value for its customers and fulfil its financial objectives for the benefit of shareholders.
How do you align strategy, structure and culture?
So how can you make sure that these dimensions are aligned? How can you work on each of them?
In upcoming articles, we will outline different approaches and frameworks that will help you consider all the required dimensions to achieve a holistic transformation of your organisation.
Each article will answer a crucial question:
- Why is it important to find your organisation’s true purpose?
- How can focusing on your culture lead your organisation to greater success?
- How can organisational design help you unlock your superpowers?
- What have we learned about looking at organisations holistically? What does it mean for you?
Our goal is to involve you throughout this series. We want you to reflect on your own organisation.
How are you going about transforming your organisation? Are you emphasising some dimensions more than others? Are you still feeding the wastepaper bin or are you already unlocking your company’s potential?
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Anika Zumthurm