Organizing for Success

Transcription

1 Organizing for Success PRESENTED BY Gino Pokluda Sandia National Laboratories is a multimission laboratory managed and operated by National Technology & Engineering Solutions of Sandia, LLC, a wholly owned subsidiary of Honeywell International Inc., for the U.S. Department of Energy s National Nuclear Security Administration under contract DE-NA

2 2 Agenda o Why reorganization efforts have a bad reputation o When you should and should not reorganize o The Reorganization journey o Aligning towards strategy and goals o Determining the structure o Visualizing the end-state o Executing the plan o Communicating o Measuring Success o Final thoughts

3 3 Why Reorganization Efforts Have a Bad Reputation o Disruptive to the business, customer, and employees. o Expensive to execute o Used for the wrong purpose o Reorganization is a business process, not a people process o Used to align people instead of align service o Used to manage specific personnel issues o Not linked to Corporate strategy or goals o Lack of pre and post reorganization assessment or baseline o Definition of success not clearly defined

4 4 When to Reorganize o To align to changing Corporate strategy o To stay competitive in a changing market o Mergers or acquisitions o Introduction of a disruptive technology or new regulatory requirement o Size reduction or consolidation of services o Lack of performance

5 5 When not to Reorganize o No clear business strategy exists o Current organization cannot deliver required service o Significant change in leadership has occurred within months o A problem cannot be clearly defined o Stakeholder support cannot be gathered

6 6 Aligning towards strategy and goals o Clearly identify the strategy and the goals that the business wants to achieve o Define the gap that exists in the current organization preventing achievement of goals. What is the problem to be solved? o Identify strengths that can be leveraged to bridge the gap, solve the problem. o Identify weaknesses that can inhibit success and derail the reorganization. o Define the value to the business the reorganization will deliver and when. o Ask What is it we are trying to accomplish?

7 7 Determining the Structure o There are two basic organizational structures: o Traditional Hierarchy o Flat Organization o All others organizational structures are a variation or combination of the two, most notably: o Flatter organizations o Flatarchies o Holocratic

8 8 Traditional Hierarchy o Oldest organizational structure in existence. o Pros: Reliable, resilient, maximum control o Cons: Expensive to scale, slow to change, limits collaboration and engagement

9 9 Flat Organization o Popular in modern tech companies such as Valve o Pros: No job titles, total transparency, highly agile and scalable. o Cons: Impractical for large companies, accountability issues, limited application

10 10 Flatter Organization o Most common and easiest transformation for traditional hierarchy o Pros: Communication travels in all directions, best of traditional hierarchy and flat organization, highly versatile structure. o Cons: Requires communication technology, complex roles and responsibilities

11 11 Flatarchy o Variation of Flatter most common in R&D. Perfected by Lockeed Martin Skunkworks o Pros: Ideal for business with frequent special projects, increased agility o Cons: Frequent transitions may cause confusion, teams must have a lifespan

12 12 Holacratic o Emerging structure pioneered by Zappos. First organizational structure to be targeted at specific generation; millennials. o Pros: Manage the work not the people, boss-less o Cons: Very long deployment time; several years vs. several months, cultural

13 13 Visualizing the End-State o Organized by type of work and service o Single pipeline of service to customer Service restoration, classified, unclassified desktop support Request fulfillment, projects Data analytics, quality, training, reporting

14 14 Executing the Plan o Big Bang vs. Phased o Consider HR and Payroll actions and timeliness o Perform a Table Top exercise of the reorganization prior to implementation o Keep customer and stakeholders in the loop o Execute decisively o Only deal with critical issues. All others should be addressed post deployment o Be realistic in goals and expectations o Manage like a project: beginning, end, milestones in between o Prioritize for early wins o Celebrate

15 15 Communicating o Establish a communication plan and single Point Of Contact o Communicate early and often o Be as transparent as possible o Establish a sense urgency (not panic!) o Gain support from key personnel o Develop a process to receive and act on feedback o Understand your demographic and communicate accordingly

16 16 Measuring Success o Identify specific measures that would indicate success and set a baseline o Record a baseline and set expected results o Set a time when expected results will be realized o Have a plan for when expected results are not achieved o Measure customer satisfaction for degradation or improvement o Measure employee satisfaction for degradation or improvement o Perform SWOT analysis. o Did strengths and opportunities increase? o Did weaknesses and threats diminish?

17 17 Final Thoughts o Things we could have improved o Communication to customer. Who do we go to now? o HR engagement from the beginning o New organization training o Communication to employee, especially during implementation o Things we got right o Measurement of success o Stakeholder and customer buy-in o Timeline o Purpose and expected results o Things we knew would happen o Employee turnover o Increased efficiency o Increased agility o Scalability

18 18 Final Thoughts Thank You