There are many reasons why an organization may be under-delivering. The company may have become too siloed and complex, with different parts of the organization no longer aligned to its strategic priorities thereby making it difficult for management to effectively direct resources and attention to key priorities. It may be that the operating model is no longer "fit for purpose" and that the organization needs to build new capabilities in order to deliver on its strategic agenda.
Defining the organizational architecture- the formal structure, governance and operating model - represents one of the most critical decisions of the CEO. It is also one of the few decisions that he must make alone, given that all senior management team members have a stake in the decision. Whether it’s a question of efficiency and effectiveness, alignment, operating model or capabilities, rethinking how a company is organized is never simple. There is usually no single best solution, and because it typically leads to shifts in the power and scope of activities at the senior team level, it can cause conflict and division at the top, with significant repercussions across the organization.
Through our experience working in different industries and environments, we have developed a strong understanding of different organizational models and how to make them work. Using a congruence model, we take an integrated approach to organizational architecture in building an integrated blueprint for the organization.
Pivot can help:
- Strategic Organizational Design
This involves the design of the structure and governance model at the top of an organization. Following a thorough diagnosis of the situation, we help senior leaders identify the key design criteria that will guide the evaluation of different organizational design options. We also act as a buffer between the CEO and his team, ensuring effective participation of the top team.