-: Organization design is central to cost transformation
for a number of reasons, but two are particularly important.
The first is that the design--
which is not only structure,
but is also accountabilities, KPIs, resource control--
will shape the decisions
that leaders in the organization make.
The right design can encourage leaders
to pursue top line, to drive innovation,
but to do so in a way
that keeps an appropriate eye on efficiency and cost.
The right design can create conditions
where the organization can flexibly respond
to changes in the market;
can adapt from experience by moving resources
as opposed to adding resources.
The second reason is that most organizations
over time get out of shape.
The design and the structure becomes burdensome,
becomes structurally inefficient,
and creates tremendous overhead,
which not only is a source of cost,
but is actually a source of inefficiency
for people generating output.
Streamlining that structure
creates a much more efficient organization in the now,
and the right actual design
enables continued growth while minimizing cost.