- Structure – how are functions set up in order to deliver results?
- Collaboration model – can teams work together to achieve a shared objective?
- Skills and capabilities – does talent possess the competencies required by strategy?
- Ways of working – are optimal values encouraged?
- Measurement and reward – do evaluative processes bring progress?
- Information and resources – are employees well-suited to succeed?
Sometimes companies find themselves succumbing to pitfalls when attempting to align strategy with organizational structure. A few of these obstacles include:
- Communication – employees should understand what a firm’s goals are and be able to articulate strategy clearly
- Misalignment – every department, and the jobs within those departments, should be carefully designed to align with strategy and create value for a company
- Drift – organizations evolve, and HR leaders should ensure that firms do not stray too far from strategy-driven design
Companies with a disorganized structure can put policies in place to become better designed and more in tune with strategy. Experts recommend the following:
- Frequently assess employees to ensure they have a clear understanding of strategy
- Consistently reiterate that strategy to workers
- Encourage departments to draft an “organizational purpose statement” that details how they add value to the firm
- Provide leaders who are unaligned with strategy six months to improve operations
With these strategies in place, an organization will operate leaner, meaner, and most importantly, in the right direction – forward.
According to Lean Six Sigma studies, only three percent of workplace activity yields a quantifiable value to an employer. Too often, this can be the result of a fragmented corporate structure comprised of “busy fools” who appear industrious but in reality accomplish very little. As a starting point, Lean Six Sigma practitioners recommend that HR practitioners ask themselves the following questions: