Design Organisation


OD guide
Why change?

 

Most of the data that we have captured from interviews and academic research has suggested that good OD is the “dual focus” of helping an organisation become more efficient (focused on cost) and more effective (focused on smart ways of working).

There are five triggers that typically kick off OD programmes:

(1)   Need to Reduce Costs

E.g. 1.     Organisation A needs to quickly reduce costs due to challenging market situations

E.g. 2.     Organisation B needs to reduce costs to improve its profit performance

E.g. 3.     Organisation C has a new CEO who wants to reduce significant overheads within the Head Office

(2)   Need to change because of Regulatory change

E.g. 1.     NASA embarked on a radical organisational change following the Columbia disaster; following a Government investigation which labelled the culture “flawed”, processes which did not allow “effective checks and balances”, and absolutely “no characteristics of a learning organisation”

E.g. 2.      the impact of Sarbanes Oxley on corporate IT Departments

(3)   Revised Strategy requires realignment of people, processes and systems

E.g. 1.     Organisation A decides to centre all manufacturing operations abroad, and refocus UK & Ireland operation purely on sales and marketing

E.g. 2.     Outsourcing

(4)   Business growth in scale or complexity

E.g. 1.     Retailer wants to build up a new online presence (Waitrose / Ocado)

E.g. 2.     Business start-up

(5)   Merger / Acquisition

E.g. 1.     Alliance Unichem and Boots merge to form Alliance Boots



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