WEBVTT 1 00:00:00.450 --> 00:00:02.970 Organization design is central to cost transformation 2 00:00:02.970 --> 00:00:06.360 for a number of reasons, but two are particularly important. 3 00:00:06.360 --> 00:00:08.130 The first is that the design-- 4 00:00:08.130 --> 00:00:09.600 which is not only structure, 5 00:00:09.600 --> 00:00:13.560 but is also accountabilities, KPIs, resource control-- 6 00:00:13.560 --> 00:00:14.580 will shape the decisions 7 00:00:14.580 --> 00:00:16.740 that leaders in the organization make. 8 00:00:16.740 --> 00:00:19.200 The right design can encourage leaders 9 00:00:19.200 --> 00:00:22.350 to pursue top line, to drive innovation, 10 00:00:22.350 --> 00:00:24.030 but to do so in a way 11 00:00:24.030 --> 00:00:27.780 that keeps an appropriate eye on efficiency and cost. 12 00:00:27.780 --> 00:00:29.400 The right design can create conditions 13 00:00:29.400 --> 00:00:31.440 where the organization can flexibly respond 14 00:00:31.440 --> 00:00:33.000 to changes in the market; 15 00:00:33.000 --> 00:00:36.360 can adapt from experience by moving resources 16 00:00:36.360 --> 00:00:38.433 as opposed to adding resources. 17 00:00:39.300 --> 00:00:42.150 The second reason is that most organizations 18 00:00:42.150 --> 00:00:44.220 over time get out of shape. 19 00:00:44.220 --> 00:00:47.670 The design and the structure becomes burdensome, 20 00:00:47.670 --> 00:00:49.560 becomes structurally inefficient, 21 00:00:49.560 --> 00:00:52.020 and creates tremendous overhead, 22 00:00:52.020 --> 00:00:54.060 which not only is a source of cost, 23 00:00:54.060 --> 00:00:55.920 but is actually a source of inefficiency 24 00:00:55.920 --> 00:00:58.410 for people generating output. 25 00:00:58.410 --> 00:01:01.140 Streamlining that structure 26 00:01:01.140 --> 00:01:04.350 creates a much more efficient organization in the now, 27 00:01:04.350 --> 00:01:06.300 and the right actual design 28 00:01:06.300 --> 00:01:09.303 enables continued growth while minimizing cost.