Synopses & Reviews
For the past 35 years, Capelle Associates has focused exclusively on helping executives improve organization performance by optimizing organization design. During that time, Capelle Associates has completed more than one hundred large-scale organization design projects. Research projects and task alignments reviews have also been carried out, and this book is a synthesis of those years of experience.
This book is of value to any executives and managers, especially heads of organizations and business units -- and heads of HR in particular. There is considerable evidence acknowledging that better organization design is related to better organization performance. Employee engagement increases; customer satisfaction escalates; and financial performance improves. This book provides a comprehensive understanding and model of organization design that can be applied to realize positive change management.
The first part of the book is an overview of optimizing organization design. This includes four main steps: initial discussion, proposal and contract; assessment, report and meetings; implementation; and sustainment. The second part of the book provides an assessment framework includes a systems perspective and the optimal alignment of positions (vertically and functionally); accountabilities and authorities (managerial and cross-functional); people; deliverables; and tasks. Organizations are stratified human systems, and understanding an organization as a human system in an organizational environment has tremendous power for understanding how it functions and changes. The third part of the book provides a change management framework, and includes setting up the project for success; organization design implementation steps; related project management and people change management; practices; principles; a specific approach for strengthening the implementation; and discussion of the value of an internal-external team.
Additional key connections are discussed. This includes the role of a Board of Directors and its mandate to ensure optimal design; how optimizing organization design can improve project management and process management; and how this approach can be used to determine appropriate compensation.
Rounding out the book are the comments from thirty top executives on their success in optimizing organization design; research demonstrating that this approach is related to better employee satisfaction, employee satisfaction and financial performance; case studies and a glossary.
Synopsis
Optimizing Organization DesignOptimizing Organization Design offers a comprehensive resource and valued guide for anyone interested in improving organization performance. The book presents an approach to optimizing organization design that is based on over 100 large-scale projects and 23 research studies that have been completed by Capelle Associates over the past 25 years. In addition, the book includes insightful comments from executives on their success in using this approach.
Capelle's research and client experience reveal that optimizing organization design leads to better financial performance, customer satisfaction, and employee engagement. It can provide a competitive advantage and a significant return on investment. It can also become the foundation of both strategy implementation and human resources management.
Capelle shows that organization design comprises the alignment of a number of critical factors, including positions (vertical and functional), accountabilities and authorities (managerial and cross functional), people, deliverables, and tasks. He shows that managerdirect report alignment is the single most important organization design variable. His research also shows that it is suboptimal nearly half the time. This is a horrendous waste of talent and capability, but also provides a significant opportunity for improvement in organization performance.
Optimizing Organization Design clearly explains how to implement organization design improvements. This approach includes people change management, project management, and a cascading, iterative approach that is based on teams and involves education, doing real work, and feedback.
In addition, Optimizing Organization Design includes special sections on the role of the Board of Directors, project management, process management, and compensation. In addition, the author has included four case studies and a useful glossary.
Synopsis
Optimizing Organization Design: Executive Experience
"With the full benefit of hindsight I can only reiterate the statement I made to you following your final presentation, 'This is the best value for money I have ever experienced from any consultant.'"
Isadore Sharp, Founder and Chairman, Four Seasons Hotels and Resorts, and author, Four Seasons: The Story of a Business Philosophy
"We are now in the eighth year from the time that you initially supported us with an organization design assessment and implementation ... all of the key foundational organization design principles have remained intact within Allstate ... in 2013, we have been selected by AON Hewitt as one of the Best Employers in Canada ... In addition, over the last three years, we have outperformed the industry on all key performance metrics."
Eric Pickering, Vice President, Human Resources, Allstate Canada Group
"We have recently been awarded the Great Workplace Award by the Gallup organization. The award positions LS as being one of the most engaging companies in the world. In 2013 only 32 companies globally received this special recognition, with LS being the sole retailer in the group ... we believe that our organization design practices have provided an important foundation for the deployment of our employee engagement initiatives and would like to thank Capelle Associates for their support in that regard."
Gerry Savaria, President & CEO, LS travel retail North America
"The organization assessment you carried out provided excellent insights, and your recommendations set a baseline for improvements that we have made to the organization. In addition, the implementation consulting support provided us with methods, materials, and training, so we did not have to 'reinvent the wheel.' There is no question that you have helped us to achieve the significant improvements in our organization."
George Weber, President & CEO, Royal Ottawa Health Care Group
About the Author
Ronald G. Capelle has over 35 years of organization experience. He and his colleagues have developed the Optimizing Organization Design® approach. This approach is based on over 100 large scale projects and 24 research studies that they have conducted over the past 25 years. The research and client experience shows that this approach leads to better employee satisfaction, better customer satisfaction and better financial performance.
Ron has successfully completed many very complex projects, including improving the operations of an organization in over 60 countries. He has consulted with virtually all types of organizations in the private sector, non-profit sector and the government sector. He has supported global clients with operations in North America, South America, Europe, Asia, and Africa.
As well as consulting, Ron has completed extensive research into organization design and uses the data to offer clients a customized, proven approach to strategic organization design. This includes benchmarking databases with over 59,000 manager – direct report relationships and over 13,000 employee satisfaction questionnaire responses.
With a Ph.D. from York University, Ron is also a Certified Management Consultant (CMC); a Certified Organization Development Consultant; a Registered Psychologist (CPsych); a Certified Human Resources Professional (CHRP); and has completed the academic requirements for the Directors Education Program (University of Toronto Rotman School of Management and ICD Corporate Governance College).
Table of Contents
List of Research Studies xi
Acknowledgments xiii
Introduction xix
1 Why Organization Design Matters 1
Employee Satisfaction 2
Customer Satisfaction 5
Financial Performance 6
Competitive Advantage 7
Significant Return on Investment 8
Foundation of Strategy Implementation 9
Foundation of Human Resources Management 10
Client Experience 12
Research Support 13
Special Topics 15
Conclusion 18
2 Organization Design Assessment 20
Organization Systems Functioning Model 23
Organization Systems Change Model 28
Organization Alignment Model 29
Vertical Alignment of Positions 32
Functional Alignment of Positions 58
Aligning Accountabilities and Authorities 73
Aligning People with Positions 103
Aligning Deliverables 112
Aligning Tasks 126
Organization Design Principles 135
Conclusion 136
3 Organization Design Implementation 138
Objectives of an Organization Design Implementation 140
Organization Design Implementation Components Model 141
Organization Design Implementation Process Model 150
Organization Design Implementation Principles 155
Strengthening the Organization Design Implementation 157
Internal-External Team Approach 160
Conclusion 162
4 An Overview of the Process 164
Initial Discussion, Proposal, and Contract 165
Assessment, Report, and Meetings 167
Implementation 172
Sustainment 174
5 Additional Topics of Importance 175
The Role of the Board 175
Project Management 184
Process Management 189
Compensation 192
6 A Call to Action 195
Appendix A: Client Experience 201
Appendix B: Research 225
Appendix C: Case Studies 362
Allstate Insurance Case Study 363
Canadian Pacific Case Study 377
Capital Power Case Study 390
Royal Ottawa Health Care Group Case Study 404
Glossary 417
References 430
About the Author 440
Index 441