Corporate Restructuring - Organisation Design
The concept of Organisation Design is often misunderstood. Traditionally, Organisation Design has been viewed as a vehicle to reshuffle leadership responsibilities or to drive personality-led restructuring. This narrow view leads to structures that evolve haphazardly over time and organisational shapes that are misaligned with an organisation’s strategy.
Moreover, in today’s economic climate, companies and public sector organisations are increasingly being forced to look hard at their costs and the capabilities they require to operate through this period of heightened market pressure. Many executives have recognised the need to reduce headcount in a more sustainable manner than in previous downturns. Organisations need to plan carefully to protect the core skills and knowledge that will see them through these difficult market conditions and enable to quick response at the first sign of upturn.
Both successfully right-sizing an organisation in the context of cost reduction, or designing the optimal organisation to execute strategy, requires consideration of a number of elements, including:
- Understanding internal and external drivers
- Developing a set of design principles that enable careful evaluation of organisational options
- Identification of the capabilities required by the organisation
- Balance a longer term strategic agenda with any need for immediate cost savings
Find out more:
People Cost Reduction
Research and insight
Share this page
© 2013 Deloitte LLP. All rights reserved. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity.
Please see About Deloitte for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its Member Firms. View our accessibility statement.
