What Is Organizational Design & Why Do You Need It?

Monday, 7 March 2022

What Is Organizational Design & Why Do You Need It?

Posted by Madhu Gupta
As a business owner, you constantly need to work on improving the way your company operates, because that is precisely what can lead you towards the success that you are hoping to achieve. If you don’t do anything to improve the way you do business, then you will simply be stuck at one and the same spot on the market and you’ll keep on stagnating until you realize that you are no longer able to survive. This is a scenario that you don’t even want to imagine and let alone experience.


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There are, without a doubt, quite a lot of things you’ll have to think about and strategies you will need to use when trying to improve the operations of your business. I suppose you do understand that running a company is actually quite difficult and that you need to constantly be aware of the fact that you are the one responsible for its successes and its failures. Of course, since you don’t want your company to fail, you’ll certainly do everything you can to keep it profitable and successful.

As explained, there are a lot of aspects that you need to keep in mind here and a lot of things you’ll need to think about when trying to ensure the mentioned success. One of the things you might want to take into consideration today is organizational design. There is a chance that you’ve heard this term before and that you are familiar with the concept to a certain extent, but you probably don’t understand it all quite well, meaning that you’ll need to learn more about it.

Well, if that’s what you need, then you have undoubtedly come to the right place. In the rest of this article, I’ll talk about the concept of organizational design. I will explain what it precisely is and I’ll answer the question of why you might need it. That way, you’ll get a completely clear picture on this specific process and you’ll realize if your business needs to go through it. Click this to get a quick overview of the concept.

What Is Organizational Design?

So, as hinted at, I will talk about the concept of organizational design, in an effort to help you understand what it really is, and then we will proceed towards helping you check if you need it and why you might want to use it. We will, of course, take this one step at a time and it’s not a surprise that we are going to begin with a sort of a definition of this specific concept. It’s time to understand what it is.

Basically, this is the process of identifying the weak points, i.e. the dysfunctional aspects of your entire work flow, structures, systems and procedures, with the aim of realigning them. The realignment process is necessary because you want all of those procedures, structures and systems to fit your current business goals. Once the weak points have been identified, a plan is created for making certain changes in the way your business operates, while all of that is aimed at reaching your company goals.

It is important to understand that organizational design deals with both the technical and the people part of your business. This means that it helps identify struggles and dysfunctional aspects in the technical part of the way you do business, as well as the dysfunctional aspects that might be caused by your staff. Identifying all of those weak points is important, because that’s the only way for you to actually manage to improve your operations and thus increase your chances of success.

Why Do You Need It?

You might now be wondering what it is that makes organizational design so important. Can’t you just leave things the way they are right now and simply hope for the best? After all, you seem to be functioning adequately enough and you aren’t exactly sure if tampering with that is a good idea. You might even be worried that making any changes whatsoever can lead to deterioration in the way you operate and that it might all actually be counter-productive. I can definitely understand all of those concerns and I am not going to argue against them, since they can be quite valid and reasonable.

Yet, the simple truth is that some organizations are structured in ways that are not good for customers, for employees or for the business itself. Your staff might not feel empowered, your clients are perhaps dissatisfied with your service, your production process might be inefficient etc. All of that leads to a less profitable business, which brings us to our main point. If you want your company to be as profitable as possible, you should think about an organizational redesign right away.

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