Organizational transformation, in reflecting on the word transformation. We hear the word almost daily and in so many capacities. Transformation resonates in almost every aspect of our lives, it manifests in our personal lives, our careers, health, business, and company cultures.
As we embark with clients on their organizational transformation journey there was a very defined methodology that is used, which is the Galbraith Star Model, designed by Jay R. Galbraith (2018 Galbraith Management Consultants). The model system focuses on Strategy, Structure, Business Process, Reward Systems and Human Resource Management. What we love (yes, love) is that this system and process creates a clear path for change (where are we going), scripts the moves (how are we going to get to there), and keeps teams motivated (deliver small incremental decisions and actions along the path).
The organizational transformation focuses on the following key areas
- Strategy: Vision, Governance, Comparative Advantage
- Structure: Power & Authority, Information Flow, and Organizational Roles
- Processes: Networks, Processes Terms, Integration Roles and Matrix Structures
- Rewards: Cooperation and Rewards
- People: Hiring, Performance Feedback, and Professional Development
It is critically important to follow steps as outlined in the Galbraith Star Model. Each phase of the model is a building block for the next phase. The strategy phase focuses on vision, mission and it establishes the direction for the organization and drives the business i.e., markets where the products or services are sold. Strategy is the foundation. Think of this in the lens of building a house, there must be a blueprint for the house and then the foundation is built to support the house. Strategy informs structure. Structure determines the type of structure required, including:
- How are we organized?
- What are the key roles?
- How is the work managed?
- Where should the power and authority reside?
- Where is the span of control?
- Aligned with the value chains?
Once the structure is designed and agreed upon, then we pivot towards processes. Processes determine the flow of information, standards of work, and decision accountability. Highly automated processes should be inherent to a low-cost business model and rigorous quality control processes might be required.
Rewards should align with the goals of the employees and encourage and motivate them to create a synergy to execute the strategy. And lastly people, in this phase it is critical to ensure the team has the skills required to not only execute the strategy but also create bench strength for the organization and fit into the company culture. The phase also includes human resource policies.
Culture is also a critical part of the organizational transformation journey (somewhat of an obvious statement). Involving the teams throughout the process while defining functional accountabilities enables that feeling of control and the ability to influence the moves of change.
Curious and want to learn more about organizational transformation please reach out to xSynergy Solutions. xSynergy Solutions is a full-service business transformation firm located in Centennial, CO. We impact every aspect of your business from marketing to operational strategies. Learn more at xsynergysolutions.com