Data-driven organization design : sustaining the competitive edge through organizational analytics

368 Pages·2015·101.45 MB·English

DATA-DRIVEN
ORGANIZATION
DESIGN
Sustaining the competitive edge
through organizational analytics
RUPERT MORRISON
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DATA-DRIVEN
ORGANIZATION
DESIGN
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Publisher's note
Every possible effort has been made to ensure that the information contained in this book
is accurate at the time of going to press, and the publisher and author cannot accept
responsibility for any errors or omissions, however caused. No responsibility for loss or
damage occasioned to any person acting, or refraining from action, as a result of the ma
terial in this publication can be accepted by the editor, the publisher or the author.
First published in Great Britain and the United States in 2015 by Kogan Page Limited
Apart from any fair dealing for the purposes of research or private study, or criticism or review,
as permitted under the Copyright, Designs and Patents Act 1988, this publication may only be
reproduced, stored or transmitted, in any form or by any means, with the prior permission in
writing of the publishers, or in the case of reprographie reproduction in accordance with the terms
and licences issued by the CLA. Enquiries concerning reproduction outside these terms should
be sent to the publishers at the undermentioned addresses:
2nd Floor, 45 Gee Street 1518 Walnut Street, Suite 1100 4737/23 Ansari Road
London EC1V 3RS Philadelphia PA 19102 Daryaganj
United Kingdom USA New Delhi 110002
www.koganpage.com lndia
Writing and editing contribution throughout: Will Sheldon
© Rupert Morrison, 2015
The right of Rupert Morrison to be identified as the author of this work has been asserted by him
in accordance with the Copyright, Designs and Patents Act 1988.
ISBN 978 0 7494 7441 6
E-ISBN 978 0 7494 7442 3
British Library Cataloguing-in-Publication Data
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658.4'0301-dc23
2015031280
Typeset by Graphicraft Limited, Hong Kong
Print production managed by Jellyfish
Printed and bound by CPI Group (UK) Ltd, Croydon, CRO 4YY
V
CONTENTS
About the author x
Foreword xi
Acknowledgements xiii
PART ONE Introduction 1
1.1 Data-driven organization design 3
Effective organization design and management 5
Why people are struggling with organization design 6
How this book will help you 8
Structure of the book 10
Final thoughts 10
Notes 11
1.2 Challenges 13
Introduction 13
The reality of the challenge 14
Common challenges in organization design 17
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Foundation 3: Organizational datais messy 33
Applying the foundations in practice 35
Method 1: Create hierarchical data structures 37
Method 2: Connect the system 40
Method 3: Visualize to analyse 46
Final thoughts: see it as a journey 56
Notes 57
*§M
Contents
PART TWO Macro design 59
2.1 Introduction 61
Macro design in practice 62
Structure and logic for Part Two 63
2.2 Strategy articulation and design criteria 65
Introduction 65
Define where you are going and why 66
The case for change 71
Constraints and risks 75
Setting the design criteria 76
Final thoughts 77
Notes 79
2.3 Structural options and business case so
Introduction 80
Develop options 82
Analysing and deciding your best option 89
Develop and sign off the business case 97
Final thoughts: Have a strong case for change 99
Notes 100
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Introduction 108
Data blockers and myths 109
Building the baseline - get ready to wrangle 113
Performing analysis: common statistical traps 122
Final thoughts 130
Notes 131
@IM
Contents
3.3 Objectives management 133
Introduction 133
Why organizations struggle with corporate-wide performance
management 134
Process for setting and managing objectives 138
Maintaining and improving objectives management 148
Final thoughts 150
Notes 152
3.4 Fixed process design 153
Introduction 153
Types of process map 154
Understanding the as-is 159
Analysing the as-is 163
Design the to-be process and structures 170
Link the to-be work toto-be positions and hierarchical
structure 178
Final thoughts 183
Notes 184
3.5 Dynamic process design 185
Introduction 185
Dynamic process design methodologies 186
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Objectives versus competency management 205
The business case for competency management 206
Developing and putting the framework to work 210
Final thoughts 218
Notes 219
Wmi
contents
3.7 Rightsizing 220
Introduction 220
Common currently used flawed methods 221
Four methods for rightsizing your organization 222
Method 1: Ratio analysis 223
Method 2: Activity analysis 230
Method 3: Driver analysis 236
Method 4: Mathematical modelling 243
Final thoughts 247
Notes 248
PART FOUR Making it Real 249
4.1 Introduction 251
What is Making it Real? 251
Realize the design is only a sketch 253
Structure and logic for Part Four 254
Notes 256
4.2 Common traps 257
Introduction 257
Knowing when and what things are going wrong 257
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4.4 lmplementation 275
Introduction 275
Impact assessment 276
Communication 281
Transition management and consultation 285
MfiM
Contents
Collateral 293
Final thoughts 294
Note 295
4.5 Workforce planning 296
Introduction 296
What we really mean by workforce planning 297
How micro design helps to drive workforce planning 301
Workforce planning in practice 302
Final thoughts 307
Notes 309
4.6 Talent management, succession development and
succession planning 310
Introduction 310
Why all the hype? 311
Approaches to succession planning 313
Implementing talent and succession planning 319
Final thoughts 321
Notes 322
4.7 Organizational getting things done 323
Introduction 323
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4.8 Sustaining the edge 335
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Tracking the system 336
Celebrating, reflecting and resting 340
Final thoughts 342
Notes 343
Appendix 345
Index 349
X
ABOUT THE AUTHOR
Rupert Morrison is the CEO of Concentra, one of the fastest-growing
analytics firms in the UK and winner of the Technology Innovation
Award 2011 in the Sunday Times Tech Track 100. He led the creation of its
OrgVue product, an integrated software platform with solutions including:
HR analytics, organization design, transition management and strategic
workforce planning. It was selected as one of four Gartner Cool Vendors in
human capital management from an international field. Created based on
experiences helping clients with business transformation, it is revolutioniz
ing the way people design, transform and operate their organizations to
sustain competitive advantage.
Rupert's approach combines his experiences of running a fast-growth tech
firm alongside a wealth of experience in business transformation, supply chain
optimization, and organization design projects. Having studied economics
at Erasmus University Rotterdam, he has spent 18 years in consulting, help
ing organizations around the world. While at Concentra, and before that with
AT Kearney, Rupert has worked on projects in a broad range of industries
including automotive, FMCG, mining, government agencies, pharmaceutical
and private equity.
Rupert grew up on a sheep station in the Wairarapa in New Zealand. He
lives in London with his wife and three sons. He has a passion for rugby,
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