Here is a brief excerpt from an article by Benjamin Bouraoui and Alexander Thiel for the McKinsey Quarterly, published by McKinsey & Company. To read the complete article, check out other resources, learn more about the firm, obtain subscription information, and register to receive email alerts, please click here.
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Embrace change, contended Greek philosopher Heraclitus, because it is “the only constant in life.”
In today’s workplace, companies are in a nearly constant state of organization change – whether it’s a large-scale makeover or a shakeup of departments or geographies – McKinsey research finds. And if they aren’t continual, the redesigns emerge in faster and faster intervals.
The reasons for warp-speed change are clear: to keep pace with ever-evolving consumer needs and technology, the persistent drive for efficiency and productivity to meet investor – and often activist – demands, and to compete with nimble rivals.
Yet, while org redesigns aim to be smooth, short, and deliver more efficient and effective operations, they often spark frustration and failure. They frequently trigger business disruption that strains affected employees. Their intended impact seldom occurs, and they often deliver only incremental results and significant disruption costs.
What’s the recipe for success?
Zero-based org design, or ZBO, is where the answer can lie. This is a blank-sheet approach and it requires starting with a clean whiteboard to move effectively from incremental to transformational impact within an organization. Erase from your mind the current organization with all its structures, processes and stakeholders, and ask this question: How would the perfect future organization look if it were built from scratch?
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Here is a direct link to the complete article.