McLean & Company Launches Guide for Effective Organizational Design

In the face of unpredictable outcomes in the future of work, organizations are seeking effective approaches to business operations that ensure sustainable success. To aid HR and organizational leaders, McLean & Company has released the “Organizational Design Guide.” This resource provides valuable insights into navigating the organizational design process, emphasizing that effective design enables companies to adapt to market changes and achieve long-term goals.

1. Understanding Organizational Design:
   • McLean & Company stresses that organizational design is not just about restructuring; it involves aligning all aspects of the business, including strategy, workflows, people, and culture.
2. The Risks of Quick Fixes:
   • Amani Gharib, PhD and director of HR Research & Advisory Services at McLean & Company, cautions that quick fixes can lead to inefficiencies and greater long-term challenges that consume time and resources.
3. Benefits of Optimal Design:
   • Effective organizational design can enhance business performance, leading to:
     • Improved workflows and processes
     • Faster, more effective decision-making
     • Increased efficiencies and reduced costs
     • Enhanced employee engagement
4. Consequences of Ineffective Design:
   • Poor organizational design can result in:
     • Inefficient use of time and resources
     • Decreased quality of products and services
     • Reduced customer satisfaction
     • Lower employee engagement

Four Sections of the Guide:

To assist HR and organizational leaders in their design efforts, McLean & Company has structured the guide into four sections:

1. Organizational Design Foundations:
   • Explore key elements such as change management, strategic alignment, governance, and guiding principles.
2. Current-State Assessment:
   • Analyze the existing operating model, structure, and culture to inform strategic decisions.
3. Operating Model & Structure:
   • Develop the operating model and design the organizational structure with clear accountabilities and responsibilities.
4. Communication & Sustainment:
   • Plan for effective communication and change sustainment, preparing to measure the design’s effectiveness.

McLean & Company emphasizes that change management is critical throughout the organizational design process. Leaders must evaluate the implications for talent and ensure meticulous planning and execution of communications, particularly when significant changes impact employees.

Amani Gharib notes, “Navigating organizational design components, such as change management and governance, requires thoughtful execution and careful sequencing of communications to achieve sustainable improvements.”