Background
A manufacturing company encountered challenges in managing the increasing complexity of its operations due to the expansion of its three business units.
The existing organizational design limited efficient cross-functional communication and caused misalignment towards mother company’s strategic objectives. To address this we launched an organization design project best suiting the company's operating model and its business goals.
Key leading questions
- What are the main inefficiencies in the current organizational design that hinder company success?
- How does the organizational design ensure alignment with the company's strategic objectives?
- Which critical processes need to be improved – prioritization of improvement initiatives?
- What are the specific needs of each business unit, and how can a new structure better support these needs?
Our intervention
Metholodogy
Using the 5-star model, we mapped the current operating model, highlighting the ways it creates value to the market, how it is supported, by its suppliers/partners, management systems and its internal processes, and the current organizational structure. This methodology presented a snapshot of the current operating model.
Workshop facilitation to enhance management ownership on outputs
Through workshop facilitations with the client’s management team we mapped critical processes, cross-business unit communication and outlined improvement initiatives. These sessions enabled a deep dive into the operational dynamics of the client, bringing to light opportunities to improve organizational efficiencies and identify scenarios for the restructuring process. Pre-workshop documents included internal organizational information, best practices on organization design, benchmarks from successful companies and future market outlook.
Through the above process, a tailored matrix structure was approved, specifically designed to enhance cross-functional communication and streamline processes leading to cost cutting and productivity improvement. This approach was critical in integrating operational activities with the client's strategic goals, establishing a strong foundation for increased operational efficiency and more accountability among team members.
Long-term benefits projected include a more robust organizational design supporting the business goals. The strategic foresight in establishing a matrix structure is expected to facilitate continuous improvement and innovation across all departments, contributing to new product launching and market expansion.