Organization Design Strategy: Role Played by the HR Leaders

Design thinking is a human-centric and an action-oriented framework for problem-solving that first originated in the 1950s. If executed effectively, it can help lower business risks, gain employee confidence, nurture growth, and facilitate an increase in market share. The innovative HR tool makes the line go blur among the internal (employees) and external customers.

What Made Organization Design an Important Aspect of Business Upkeep?

  • It is OD (Organization Design) upon which the entire business structure, systems, and processes are built. HR leaders do ensure that OD remains in sync with the business strategy at all times.
  • OD focuses on employee-care which eventually results in organisational development.
  • Its roots are spread into nurturing all aspects of organisational elements including individuals, teams, culture, and environment.
  • Through this approach, leadership in HR across industries recognized the growing need of treating employees similar to customers. The underlying logic is in the fact that happy and satisfied employees result in better productivity and business growth.
  • Design thinking involves innovative ways of organisational development comprising calculated risk-taking and undertaking quick execution.

What Does Organization Design Mean for CHROs at New-Age Corporations?

Best hr leaders see it as a strategy that leads to a continuous journey of discovering new business-growth ideas and upkeeping the current pace. It generally entails understanding present gaps in the business growth, and identifying future possibilities to keep business afloat amid the growing competition in the global markets.

Policies, new systems, and processes are formed by the chief of human resources department in an organization to promote and encourage key talent acquire leadership positions in the near future.

Why Leading OD Interventions is Considered Difficult?

  • Popular belief is that implementing OD strategy is difficult, requires numerous man-hours, continuous communication, and attracts high costs.
  • Another scare regarding OD intervention is the possibility of it going wrong. If that happens, recovery becomes hard to attain.

Skills Chief HR Officers Acquire to Become an Efficient OD Practitioner

Similar to how healthcare professionals identify the symptoms of a disease and later treat the root cause of the problem to chalk out an accurate drug prescription, a seasoned OD practitioner knows what tools and tactics to take into consideration while carving out an effective and impactful OD intervention strategy.

Divergence from stakeholders’ viewpoint and guidelines can make the process hard for the involved HR professionals. Besides, an OD practitioner must ensure that an in-depth research is made prior to executing plans. The strategy-readiness in terms of its implementation matters the most.

For making a fruitful OD intervention, one should consider the interdependencies between varied sub-elements such as structure/policy/people/system/culture. 

7 Principles of Organization Design

  • Encourage accountability.
  • Extract the maximum out of the top talent.
  • Optimize what is in your control.
  • Work on your strengths even further as a business.
  • Define organization’s purpose clearly incorporating highest standards of precision.
  • Refrain from strictly following industry’s best practices and benchmarks, as it deviates you from trusting your own organization’s capabilities.
  • Organizational structure should be amended the last, not at the starting of OD-intervention proceedings.

A recent survey on Organizational Design Strategy concluded that 42% of C-level executives think that their company does not work in sync with the defined guidelines, and a considerable part of their firm simply do not understand it. If that is what you have dealt with, the article will help you build a brand-new OD strategy that will certainly work.

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