Improvements to processes should be cemented by a new organisational structure and working procedures shaped around the few, important processes which ensure that customers' needs are met.
These can be implemented, in a series of packages, each of which might contain:
- a new organisational chart with revised managerial accountabilities and headcount
- flow charts to define the key business processes and their underlying sub-processes
- a description of the impact of changes in the organisation and business processes on relationships with customers, suppliers and others
- a description of the main effect of the changes on employees, including any necessary changes to terms and conditions of employment and reward
- an assessment of the principal risks inherent in the proposed change and the actions necessary to mitigate them
- a summary of the expected benefits and when they should be realised.
The new organisational chart will show how jobs fit with processes and how accountability is exercised, reported and measured. Cutting layers of management and widening spans of control help to reduce costs and improve communication and responsiveness. We make sure the right people are in the right jobs, doing the right things.
The design of the monthly management information pack and its associated analyses are rarely thought of as an aspect of designing organisational structures. We take the opposite view. Organisational structure ought not to be reviewed without including detailed reference to the financial and operational numbers that quantify the scale and shape of an organisation, and point to how it is to be controlled.