Menu

Organizational Design

Unlocking the true potential of your company and resources 

Evaluating organizational design is necessary for organizations to prosper—perhaps leadership recognizes waste, improper resource utilization or a significant transformation is on the horizon. In addition, mergers and acquisitions require a close look at organizational design to understand what the future-state company looks like. However, without a strategy or destination in mind, such initiatives can fail to realize their value or even harm business productivity and efficiency.

Although business leaders turn to organizational design with the intention of addressing common issues, many fall victim to challenges related to purpose, planning and execution. Some of these frequent organizational design issues include:

Restructuring the organizational chart: Executives may hastily rearrange the organizational chart due to poor financial results or displeased board members, but these reactive measures often do not address the root cause of organizational issues. 

Starting with people instead of strategy: Organizational design can become an exercise of randomly reshuffling of employees and competencies, but this movement makes no modifications to the underlying strategy.

Falsely believing the terms of cost cutting: Executives may operate under the false belief that the organization cannot increase revenue while decreasing expenses. However, organizational design should enable growth while relocating talent and tools to cut costs.  

Restricting org change decisions: Leaders may restrict the number of people involved in design planning, but involving too few people will not provide a holistic view of organizational change.

Underestimating the fundamental importance of organizational alignment: Unwise leaders may have the misconception that organizational alignment does not constitute “real work,” but this belief is what leads to non-deployed new strategies, underutilized technology and values that never manifest.

Assuming organizational design is a one-time exercise: Many leaders may think that if done right the first time, organizational design need not be revisited. However, these efforts should remain continuous as companies evolve.

How can we help you?

At RSM, we utilize six basic elements of organizational structure to devise the right plan for your organization’s design. Through the organizational design process, we examine your specific structural and cultural dimensions to align the organizational structure. These dimensions affect how your employees engage with management, each other and their jobs in order to achieve your goals. These elements include:

  • Centralization
  • Work specialization
  • Chain of command
  • Formalization
  • Span of control
  • Departmentalization

RSM is unique in the organizational design space: We bring comprehensive, integrated capabilities, not just systems and process knowledge. Our broad industry acumen provides practical insight that accelerates organizational change while increasing outcomes. We integrate resources as your needs dictate within areas including human capital, supply chain, operations, finance, sales, digital and technology, managed services and cybersecurity.

Our organizational design approach is flexible, serving as an adjacent service or a standalone service depending on your overall maturity and relationship with RSM. For example, we can provide organizational design in conjunction with developing a target operating model for your company, or we can work with your human resources team or chief operating officer in a standalone design project. Regardless, our team supports you in the designing, delivery and execution of your future-state business and objectives.