Wednesday, May 21, 2014

Business Process and Organizational Design in Digital Transformation

An integrated approach is typically best because one without the other is less likely to be successful.

Digital becomes the very fabric of modern business, being outside-in and customer-centric is the new mantra for forward-look digital organizations today. However, there are many tough challenges ahead, and numerous roadblocks around, such as how to digitize, optimize or innovate business processes, what’re the fresh perspectives of organizational design (OD) by taking advantage of digital technologies? Where is the dividing line between OD and process? Should there be a handoff from process to OD, and where should that occur? Or should they work together from start to finish, which rarely occurs?

Enforcing mutual respects between process and OD can lead the effective digital transformation. Mapping the flow of work, data and information starting with customers and going all the way inside the organization usually trigger organization design. Process people are best suited for flow mapping, but OD people and senior management are best suited for realigning functions and management. In creating an "outside in" business, it is a question of re-engineering people, process, and technology. The most successful transformation involves total BPM, with a substantial review of OD.

An integrated approach is typically best because one without the other is less likely to be successful. The reality in most organizations though is the process which is forcibly jammed within an existing organizational design. It has to be an integrated approach and not involve handoffs. Using the strategic framework to look at key strategic business elements, and transform companies from product centric to customer centric with step by step, integrated approach.

Integrating organizational design (OD) into the process design and re-engineering. In reality, fewer companies are truly using OD resources. But more often, the successful process improvement initiatives shall have representation and input from OD people management. It helps establish early buy-in and support through analysis of how the "initiative" impacts the people in the organization. Besides, the processes should be there to support the people -the most important asset of any organization, and not the other way around.

Both organizational design and process are important elements in digital transformation. The leadership team must understand that the road to achieving an effective and efficient business model is business process management with a representation of OD people management, and reach the ultimate goal to build a high-performing, anti-fragile, and customer-intimate digital business.


Pearl - could you suggest resources for learning more about OD? Thank!

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