hpo Spotlight
Organisation design: first step to digital transformation
Digitisation firstly permits entirely new business models, and secondly forms the basis for the further automation of processes. Successful organisations have already initiated the digital transformation and are converting their value creation structures and redefining processes. Here, enterprise design is the overriding strategic approach that makes it possible to get to grips with fundamental changes during the course of the digital transformation.
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Digitise business processes
Digitalisation is a challenge for companies and managers. The way customers inform, communicate, consult and make purchasing decisions has fundamentally changed. Organisations are international and multicultural. The markets in which they operate have differentiated requirements and levels of maturity. Acquisitions and new business models are integrated into existing structures. Finally, complexity outside and within divisions is increasing. Holistic organisational design is the answer and the solution to master all these challenges and to combine the existing and the new into a successful whole.
In an environment that is changing even faster, it is indispensable to pursue a long-term strategy. It is based on unique selling propositions that have been developed over years and cannot be copied at short notice. It creates commitment towards the various stakeholders. Our holistic organisational design ensures this overarching long-term approach and is the basis for the digital transformation. In this process, we define the future value creation, derive the business model and holistic processes end-to-end and develop the corresponding management structure. From the analysis to the anchoring in the daily work. A central component of the organisational design is the design of the business process model.
Holistic organisational design is based on systematically building the competences necessary for performance towards customers. In particular, those that are necessary for a successful digital transformation. This enables companies to position themselves optimally in the long term and to realise competitive advantages, regardless of the change process that needs to be managed.
Target Operating Model: Hype term for an extended business process model
The term "Target Operating Model" (TOM) has landed on the hype list of management buzzwords. The TOM defines a target state towards which a company should develop in order to sustainably hold its own against the competition. At the same time, the TOM serves to identify the necessary changes and is the starting point of the transformation process.
The TOM describes the future positioning and the associated strategic directions, the business model, the value proposition, the business process model and the management structure of a company. Different stages are possible in the elaboration of a Target Operating Model - from a rough sketch of how it works to a comprehensive framework that describes all tasks in detail.
Various stakeholders are often involved in the development of the TOM in order to enable a successful implementation through a jointly supported target picture.
Organisational design defines the functioning of an organisation
Holistic organisational design is the overarching strategic approach. It defines how positioning and strategic thrusts as well as the value proposition are operationalised through the business process model and the governance structure. We proceed as follows (see illustration below):
1. Working hypotheses
In a first phase, together with the top management, we outline how the company currently functions and what the target picture could look like. From this we derive working hypotheses, on the one hand for structuring the symptom-cause analysis and on the other hand as a target picture for an optimal functioning of the company. In many cases this includes a business process model, the adequate management structure (fast prototyping) and the design principles.
2 Actual analysis
In the following as-is analysis, consisting of top-down analyses on the one hand and targeted bottom-up interviews on the other, the working hypotheses are verified or falsified. The result is a clear picture of the company's current situation. From this, the first starting points for improving performance and the need for action to achieve the target picture can be derived. Involving the employees ensures that the causes of possible conflicts are clearly identified.
3. Target design
Based on the findings of the as-is analysis, the strategy-supporting business process model can be developed together with the management structure. In addition to the design principles defined by the company, the characteristics of a high-performance organisation are applied (consistent responsibility, clear roles and responsibilities, defined interfaces as well as congruence of business process model and management structure). Process disruptions, problem causes and design errors can be addressed and solved in a targeted manner. The target design also enables a clear understanding of common goals and values of the company between employees at all levels.
4 Participatory roll-out
Based on a gap analysis, the measures are planned sequentially and top-down. The successful transformation of the company is supported by the involvement of employees in the detailed design according to their function in the company. In this way, those affected become participants and decisions are more likely to be supported so that changes succeed.
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Who is hpo management consulting?
hpo stands for High Performance Organisations. As experts for strategy, business processes, organisation and transformation, we have been supporting nationally and globally active clients since 1995 in releasing performance potential and transforming strategies into measurable results. With our holistic and partnership-based enterprise desing approach, we reliably lead them to their goal: a consistently designed and sustainably effective High Performance Organisation - fit for the future and with a clear competitive advantage.
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