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© 2024 N. Dean Meyer and Associates Inc.
Excerpt from www.NDMA.COM, © 2024 N. Dean Meyer and Associates Inc.

NDMA Services: Restructuring Process

overview of the 13 steps in a proven, participative restructuring process that results in a new organization chart and maps new workflows

The Principle-based Organizational Structure implementation (change management) process includes the following steps:

  1. The Rainbow Analysis: Engage the leadership team in learning the science of structure; apply that science to your current organization chart to determine the need for change.

  2. Design: The leadership team collaboratively designs the new structure (boxes, no names) based on the seven Principles and the clear language of the Building Blocks.

    "This powerful, yet pragmatic, approach consistently leads to improved role clarity; better teamwork; customer focus; entrepreneurship; improved performance; and commitment."
    Preston T. Simons
    CIO, Aurora Health Care
    and former CIO, Abbott Laboratories

  3. Leader Appointments: In a fair selection process, the executive chooses leaders based on their competencies and their passions.

  4. Domains: While the old structure continues to operate, the newly selected leaders plan how the new structure will work. The first step is to craft clear domains that document their lines of business and define what each group "sells." The exchange of domains with other leaders ensures a common understanding of what's where, and eliminates any gaps and overlaps.

  5. Walk-throughs: The new leadership team practices "walk-throughs" for a variety of real-life projects and services. In each walk-through, they decide who will be the "prime contractor." The prime then subcontracts for needed help. And subcontractors may in turn subcontract for help from other groups. A high-level process results, the basis for a project plan, tailored to the unique needs of each project/service. Walk-throughs are the foundation for effective cross-boundary teamwork.

  6. Next Tiers, Draft: In large organizations, tier-one leaders draft the tier-two (and lower) organization chart (again, boxes, no names).

  7. Next Tiers, Engagement: Candidates for tier-two (and lower) positions are brought into the process, learn the science, study the new organization chart, and comment on the tier-two structure. Their feedback is incorporated into the tier-two design, so all leaders have had input to the final design.

  8. Next Tiers, Selection: Tier-one leaders work as a team to select leaders at the next tiers, again based on candidates' competencies and preferences.

    "Changing everyone's paradigm is tough work.
    This process provided a framework
    for effecting significant change."
    M. Brad Hall
    Controller and CIO, Koch Industries

  9. Next Tiers, Education: Tier-one leaders guide newly selected leaders at the next tiers through crafting their domains (subsets of the tier-one domains) and walk-throughs.

  10. Rostering: Leaders (all tiers) work together to assign all staff to groups in the new structure based on what they're doing today and where that best fits in the new structure. This approach ensures continuity.

  11. Final Preparations: The leadership team plans how they will communicate the new structure to all staff and to clients. Additionally, myriad administrative details are handled prior to the deployment of the new structure.

  12. Announcement: Although there has been open communications throughout the process, at this point the new structure is officially announced and deployed with an all-staff workshop that builds everybody's understanding of the need for change, the science of structure, and how the new organization will work.

  13. Migration: It's critical for everyone to keep doing what they've been doing until it's explicitly migrated, so as not to miss any commitments. A meticulous migration process moves accountability for preexisting commitments from one group to another, as necessary. (Since staff were rostered based on what they're doing today, the majority of contracts do not need to be migrated.)

This participative planning process gets everyone to understand not just a new organization chart, but also a new way of doing business, before it's deployed, not afterwards.

"We don't have the time to do it quickly!"
Dave Anderson
President, American Family Insurance

Sure, this requires significant time and effort.

But it's "pay me now, or pay me later." Thanks to the time spent planning and educating leaders before the official go-live, the new organization "hits the ground running."

And if you consider the point in time when the new structure is really operating as it should, this participative approach is ultimately quicker. It's another example of the old fable where the tortoise beats the hare.

The final result is an unbeatable combination of specialization, teamwork, customer focus, entrepreneurship, accountability, and commitment.


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