Our Approach:
Organizational design projects usually are initiated because of major changes in company strategy or in response to major opportunities or threats. Our work over the last three decades in organization design has, for the most part, included the design of the entire organization. However, The Croner Company has been engaged to assist with the design of specific parts of organization or with the clarification of functional roles for a selected group of jobs or a job family, such as sales, information technology or product development. A major focus of our work in this area has been on the design of project-oriented, team, or matrix organizations. Typically, we work closely with our clients during the design, development and implementation of their organizations and then continue to work with these clients over the years to update and maintain these organization designs and concepts as circumstances change.
The fundamental principle underlying the design of any organization is its reinforcement of the company's strategic directions and specific strategies. A rational and clearly defined organization architecture clearly links individual and unit results to company financial results and its strategic outcomes. A well designed organization structure also supports the elements of a competitive compensation plan by clarifying accountabilities and defining the major, strategic outcomes of units and of jobs.
The most successful organizational designs are those that are shared by all parts of the organization. Unit and job structure, "line" and "staff" reporting relationships, titles, workflows, authority and accountability all must be clearly defined and currently communicated and documented. An effective organization design project requires the development of a shared and often new, vocabulary about the organization. A well designed organization design considers both short-term needs and the long-term direction of the company.
Key Project Steps in the Design of an Organizational Design Project:
Projected Outcomes. Working closely with management, we define the company's primary short-term and long-range strategies, business plans and projected outcomes. We also research the current organization structure and the rationale of its design.
Functional Analysis. Next we conduct a functional analysis of the current organization including workflows, reporting relationships, planned department and unit outcomes, position accountabilities and responsibilities. Often, we will evaluate current title hierarchies and the basis for granting and changing titles. As appropriate to the overall purpose of the project, we define and document the primary duties and responsibilities and reporting relationships of the modified or new organization.
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