Search

How to challenge the organizational status quo

October 27 2022 | Blog

Today’s enterprises are increasingly having to adapt to external shocks, constant competitive pressures, a fluid trading environment, fast-moving digitalization, and changing demographics and working practices.

Relying on long-established organizational hierarchies is no longer sufficient. Instead, as explored in another Ingentis blog post and eBook, businesses need to continually challenge the organizational status quo, to keep pace with change and competition pressures.

What are the factors that businesses need to consider in challenging the organizational status quo? This blog post examines the key criteria and how they interact with each other, and highlights how Ingentis org.manager for SAP SuccessFactors helps organizations surface, assess and model key organizational data to drive effective organizational design decision-making.

Key criteria for challenging the organizational status quo

Alignment to business objectives

Material on how to challenge the organizational status quo often focuses on the key criterion of matching the structure to business goals, with detailed advice on how to do this.

Starting from what the business is looking to achieve is critical when it comes to assessing current organizational design.

An organization that is structured on strictly functional and divisional lines may face challenges when a disruptor enters the market, as it may lack the agility and cross-functional communication to innovate and compete effectively.

Competing effectively with disruptors can become a specific business goal that drives reorganizing to a more matrix-driven, team-based structure in those areas where competition poses the greatest threat.

While aligning organization design to business goals is fundamentally important in challenging the organizational status quo, this needs to be balanced with the other key criteria of financial considerations and best practice, and to be driven by actual data on how the current organization structure is performing against business goals.

Financial considerations

Challenging the organizational status quo should not be driven purely by short-term cost-saving imperatives, yet historically this has commonly been a driver for organizational restructuring.

Financial considerations are a key criterion in assessing organizational structure, but they need to be considered holistically. Short-term cost management is a valid consideration, alongside maximizing value from the organizational structure in the longer term, and minimizing financial risk by building as much flexibility as possible into the organization.

Reorganizing and downsizing functions which may be regarded as non-core, such as marketing or IT, can achieve short-term cost efficiencies, but at a potentially greater long-term cost in terms of succession planning and chain of knowledge, if business goals are focused on new products and digitalization.

Best practice

There is a rich resource of experience and learning built up over many years of structuring organizations to meet the needs of the business.

Tapping into this resource, through engaging consultants, creating specialist internal organization design teams, or growing organizational design best practice skills within the HR department, saves the enterprise from missed steps in assessing and optimizing organizational structures.  

In an environment where effective, adaptable organizational structures play a critical role in business success, access to organizational best practice skills can be a key differentiator. 

How Ingentis org.manager for SAP SuccessFactors powers effective organizational design

Ingentis org.manager for SAP Success Factors offers the visualization and modelling capabilities that today’s businesses need, to surface essential HR data and build an informed understanding of the strengths and weaknesses of their current organizational structure, and the alternatives.

To find out more about how Ingentis can help your organization, visit us at the SAP Store or contact sales@ingentis.com to continue the conversation.

Categories

Archive

More News

How technology can help optimize organization design to meet today’s and tomorrow’s business challenges

This blog post explores how technology, in the form of a toolset like Ingentis org.manager for SAP SuccessFactors can help organizations optimize their structure to meet today’s and tomorrow’s business challenges. Weiterlesen

How to challenge the organizational status quo

What are the factors that businesses need to consider in challenging the organizational status quo? This blog post examines the key criteria and how they interact with each other, and highlights how Ingentis org.manager for SAP SuccessFactors helps organizations surface, assess and model key organizational data to drive effective organizational design decision-making. Weiterlesen

Why should businesses challenge the organizational status quo?

This article considers the current drivers for challenging the organizational status quo, and the role that Ingentis org.manager for SAP Success Factors can play in helping enterprises to optimize their organizational design. Weiterlesen

Ingentis Named a Finalist for SAP® Global SAP SuccessFactors® Partner Excellence Award 2022 for SAP Business Technology Platform Customer Success

Ingentis today announced that it has been recognized as a finalist for the SAP® Global SAP SuccessFactors® Award for Partner ... Weiterlesen