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:
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People Cost Reduction