© Copyright- Cerebrus Consultants Organisation Transformation: Relooking at Organisation Structures Cerebrus Consultants

© Copyright- Cerebrus Consultants Transforming Organisations

TRANSFORMATION IS A TWO WAY PROCESS ORGANISATION TRANSFORMATION Business Model Strategy Systems Infrastructure INDIVIDUAL TRANSFORMATION Mindset Attitude Way of Working Way of Relating to Others END GOAL END GOAL

The Challenge Ahead…. Sustained Business Growth Market &Customer Strategy Business Strategy Rapid Technology Deployment People THE KEY...

The Challenge Ahead…. Sustained Business Growth Processes Capability Culture Quality

The Mindset also needs to transform THE CREATIVE TRANSFORMATION Certainty Structure Defined Job Predictability Guarantees Entitlement Uncertainty Networks Role Ambiguity Risks Eligibility

The Empowered Organisation THE CULTURAL TRANSFORMATION Responsible for Execution Responsible for Reporting Look for Instruction Wait for Guidance Wait for Resources Performance criteria: Compliance with Instruction Lack of Openness Command control culture Responsible for Setting Standards Responsible for Review & Control Provide Instruction, seek advice Seek counsel : internal & external Plan for resources & implement plan Performance against goals set Transparency Participative Culture The Past Current

HR’s role as a Change Facilitator Understanding Business needs and communicating it widely Enabling Change through innovative changes in HR policies and processes – ensuring HR is not a “block” Enabling the chnages in Organisation and culture through induction of the “right” person and right “fit of people” Coaching and counseling at various levels What HR Can do 8

The Challenges of SME/MSME Access to quality talent may be a constraint Retention of key talent a serious concern Assimilating senior level talent and handling their aspirations Level of delegation and empowerment in this context The Leader has to play many roles – both as a Manager & a Leader & Chief Mentor Do SME/MSMEs need to approach transformation differently? 9

HR has an even more key role Need to contribute both as a Strategic Advisor to promoter and a Coach to the promoter Also needs to play a more key role in communication and coaching in the organisation Putting basic systems and processes with a deep understanding of what they need to achieve Understanding “costs” in a strategic manner Do SME/MSMEs need to approach transformation differently? 10

© Copyright- Cerebrus Consultants The Journey of Transformation

My Role Managerial Styles Competitive Environment Culture Structure Organization Strategy Organisation Structures

Ensure that the Structure enables focus on the Strategic priorities of the organisation Efficiency in Operations and daily working Adequate controls and checks and balances Speed in response – to customers, to market, in making decisions Enabling multiple perspectives and insights to be voiced and debated at appropriate levels Clarity in Accountability to each individual What Should Structure seek to achieve 13 From only operational focus to Strategic focus & clear focus on Accountability

Considerations in Structure Design 14 ORGANISATION DESIGN BUSINESS STRATEGY ORG LIFE CYCLE & CURR REALITIES ENVIRONMENT CONTEXT

Reflecting the Business Focus in the Structure to drive thinking and action aligned to strategic focus Functional/geographical Structures to Customer centric/Product Structures Bringing Customer centricity within Eg Financial Services – geography to Customer eg Mass market, HNI etc or Product wise Auto loans, Housing loans Bringing “Whole Business’ perspective – SBU structure vs functional structure Designing Organisation Structures 15

What Structure is Appropriate also depends on Size – do the volumes justify the segmentation? Control Vs Speed --Requirement of business for Speed of action by frontline vs controls to ensure consistency Cost of structure and affordability Range and diversity of product/service offerings Designing Organisation Structures 16 Balance between various parameters is essential for the structure to be effective

Move away from Command & control structures to more “flexible” structures Multiple/matrix reporting structures Network type organisations Managing complex reporting structures needs coaching Also need to guard against the possibility of diffused accountability Trends in Organisation Structures 17

Focus on Enhancing efficiencies “Process” rather than Function approach Move to COE/shared services approach Hub and spoke model Trends in Organisation Structures 18

Also important to bear in mind that Structures designed around Individuals do not bring about Sustainability for the organisation Make the organisation limited by Individual strengths and weaknesses Increasingly does not allow the organisation flexibility Designing Organisation Structures 19

Transformation is often about a change in the expectation from the role rather than a change in ‘structure” or reporting relationships Eg role of production Supervisors – from mere Man managers to use of technology to manage processes Competencies changed to strong process orientation, understanding and leveraging of automation in addition Changing Role Expectations 20

Changes in thoughts on Span of control of Managers Impact of technology Need to have time to “coach and mentor” not merely direct staff Type and roles to be supervised would dictate span Span of Control 21

Meeting Employee aspirations for growth Structures often have to address this issue Number of levels in an organisation Broad banding vs a tall grade structure Delayering is often a major cost initiative Creating opportunities to groom leaders and build succession pipelines through roles in the structure Structures & Employee Aspirations 22

Importance of having a more participative and inclusive style of leadership and working Expectation for far greater transparency and openness Organisation processes like regular meetings that enable team work and understanding are a must Important processes for grooming managers and leaders Work Styles and processes 23

Organisation Transformation requires many actions Structure is a step to formalise the direction The real change comes about when the Mindset and the way of working and processes change Work Styles and processes 24

© Copyright- Cerebrus Consultants T HANK Y OU

What do you see?

Every ‘layer’ is Changing faster than we realise Consumer Economy Product-Markets Organisations & People TechnologyBusiness Processes Regulation