It is common for organizations to realize later on that the design they have created does not seem to provide a positive impact to their purpose, or is not able to keep up with the changes. Either way, they need to make certain adjustments in their current design framework in order to thrive. This process is known as organization redesign.

Importance of Organization Redesign

The restructuring of an organization has become a necessity and at the same time, a powerful business strategy. It is critical to the success of a business because of how dynamic the environment is. With so many changes in the marketplace, and with more and more companies becoming bent on efficiency and quality, redesigning the organization may just be the most sound business strategy to use. The whole process of redesigning is not easy; it takes time to gather relevant information, create systems and processes based on the data, and even more challenging to test and implement it. But, when done correctly, redesigning can definitely give any business the competitive advantage over others.

Organization Redesign Process

In today’s complex business settings, successful redesigning of the organization requires 7 basic steps to be accomplished.

Step 1: Selecting the Team

The first step involves the selection of members who will form the project team tasked to redesign the organization. It is recommended to get representatives from each department or unit so that everyone gets a chance to participate and take part of the redesigning process.

Step 2: Collecting Stakeholder Information

A crucial aspect of the redesigning process is to collect information on customer needs, trends, and weak areas in the organization. Surveys and evaluation of current business reports can form part of stakeholder information.

Step 3: Making a Functional Analysis

Core functions of the organization are noted down and analyzed. A visual diagram can be made and presented to the project team to discuss and make appropriate changes to the services, roles, and responsibilities within the various units in the organization.

Step 4: Setting of Group Functions Based on Criteria

The results of the functional analysis derived in step 3 are then used and grouped based on certain important criteria.

Step 5: Creating a New Organizational Chart

To ensure that form follows function, the organization creates a whole new chart that puts more importance on the functions of each unit and individual members instead of their titles and positions.

Step 6: Gathering Feedback from Stakeholders

Testing the new design draft on stakeholders and customers will enable the organization to see if this new design is effective and relevant.

Step 7: Finalizing the Design

Once measures have been taken to ensure that the redesign will work for the organization, it will be finalized, implemented, and executed.

Tools and Techniques for Redesigning an Organization

The project team will need to utilize tools and techniques to help them in the redesigning process. These include: flowchart, SWOT analysis, and functional analysis tools.

Flowchart – This is an illustration of the steps involved in a process, which represents the order of activities and interaction, The flow or sequence is depicted with the use of lines and arrows. A flowchart documents processes, designs an ideal process, and determines whether the undertaken steps are logical. It also helps identify possible hurdles and opportunities for improvement.

SWOT Analysis – Making an assessment on the current situation of the organization is a good way to determine how to redesign it. Using the SWOT can make this possible. SWOT stands for Strengths (S), Weaknesses (W), Opportunities (O), and Threats (T). Conducting a SWOT is usually done in a group function where everyone can give inputs and participate in the discussion.

Functional Analysis – This provides a representation of core functions in each major work unit. In conducting a functional analysis, these steps are followed: noting of the current work units, brainstorming of functions that have been performed in these work units, selecting core functions, exploring how core functions can interrelate with each other, and lastly, discovering which areas of these core functions need to be improved and finding out how this can be done.