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Redesign Your IT Organizational Structure

Structure follows strategy: Design your IT organization for the future.

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Your organizational structure is not delivering the value if it:

  • Fails to take into consideration the implications of the business context.
  • Is not aligned to the overarching vision of the enterprise and the goals it intends to reach.
  • Leads to workforce concerns such as retention, lack of role clarity, and cognitive overload.
  • Could be more effectively organized.

A great organizational structure:

  • Is founded on clear drivers of the need for a new organizational structure.
  • Recognizes that organizational redesign is a change initiative that requires change management practices to successfully be adopted.
  • Is founded on a more stable operating model sketch, enabling dynamic reteaming of people and roles when necessary.

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Module 1: Establish the Organizational Design Foundation

The Purpose

  • Lay the foundation for your organizational redesign by establishing a set of organizational design principles that will guide the redesign process.

Key Benefits Achieved

  • Clearly articulate why this organizational redesign is needed and the implications the strategies and context will have on your structure.

Activities: Outputs:
1.1 Define the org design drivers.
  • Clear definition of the need to redesign the organizational structure
1.2 Document and define the implications of the business context.
  • Understanding of the business context implications on the organizational structure creation.
1.3 Align the structure to support the strategy.
  • Strategic impact of strategies on organizational design.
1.4 Establish guidelines to direct the organizational design process.
  • Customized Design Principles to rationalize and guide the organizational design process.

Module 2: Create the Operating Model Sketch

The Purpose

Select and customize an operating model sketch that will accurately reflect the future state your organization is striving towards. Consider how capabilities will be sourced, gaps in delivery, and alignment.

Key Benefits Achieved

  • A customized operating model sketch that informs what capabilities will make up your IT organization and how those capabilities will align to deliver value to your organization.

Activities: Outputs:
2.1 Augmented list of IT capabilities.
  • Customized list of IT processes that make up your organization.
2.2 Capability gap analysis
  • Analysis of which capabilities require dedicated focus in order to meet goals.
2.3 Identified capabilities for outsourcing.
  • Definition of why capabilities will be outsourced and the method of outsourcing used to deliver the most value.
2.4 Select a base operating model sketch.
  • Customized IT operating model reflecting sourcing, centralization, and intended delivery of value.
2.5 Customize the IT operating model sketch.

Module 3: Formalize the Organizational Structure

The Purpose

Translate the operating model sketch into a formal structure with defined functional teams, roles, reporting structure, and responsibilities.

Key Benefits Achieved

  • A detailed organizational chart reflecting team structures, reporting structures, and role responsibilities.

Activities: Outputs:
3.1 Categorize your IT capabilities within your defined functional work units.
  • Capabilities Organized Into Functional Groups
3.2 Create a mandate statement for each work unit.
  • Functional Work Unit Mandates
3.3 Define roles inside the work units and assign accountability and responsibility.
3.4 Finalize your organizational structure.
  • Organizational Chart

Module 4: Plan for the Implementation & Change

The Purpose

Ensure the successful implementation of the new organizational structure by strategically communicating and involving stakeholders.

Key Benefits Achieved

  • A clear plan of action on how to transition to the new structure, communicate the new organizational structure, and measure the effectiveness of the new structure.

Activities: Outputs:
4.1 Identify and mitigate key org design risks.
  • Risk Mitigation Plan
4.2 Define the transition plan.
4.3 Create the change communication message.
  • Change Communication Message
4.4 Create a standard set of FAQs.
  • Standard FAQs
4.5 Align sustainment metrics back to core drivers.
  • Implementation and sustainment metrics.
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