Organization Design
Organization design involves creating an organization structure that is aligned with and facilitates the successful carrying out of an organization’s mission and strategy. BDC Advisors takes an “architectural” approach to organization design, thinking of the many components of organization structure – governance structure, managerial hierarchy, span of control, reporting relationships, accountability, decision-making process, culture – as elements to be shaped in creating solutions designed to meet an organization’s unique needs. Organization design starts with developing a thorough understanding and, if necessary, consensus about strategy, and then shifting focus to the structure that will best support the strategy (function always before form). A variety of circumstances can motivate organization design:
- Turnaround situations, where organizations must reduce cost while maintaining or improving effectiveness
- High performing organizations who want to fine tune, or significantly change, their structure or management processes to fit with an evolving strategy
Organizations that have recently combined or split apart, and who need to adapt their structure or processes to meet new circumstances.
Examples:
West Coast Three-state Health System – Organization Redesign
BDC Advisors reorganized the Board and Committee structure, roles, and responsibilities for a large, three-state health system, transforming the organization of 47 hospitals in 10 decentralized regions to 4 tightly-managed regions, to ultimately an operating company under the direction of a single COO. The result of this work, including over $100 million in cost savings, was featured on the cover of Modern Healthcare.
