The report says that organizational redesign can help companies adapt to market changes

New organizational design can better equip companies for market change and long-term success if companies leave behind legacy operating models and practices that inhibit agility. according to a new guide From McLean & Co.

But the company noted that the intentional redesign aligned all aspects of the business, including strategic planning, workflows, people and culture, rather than simply restructuring.

“Often, it may seem easier to quickly create new organizational structures rather than engage in a full-blown organizational redesign,” says Amani Gharib, director of HR research and advisory services at McLean & Co. he said in a statement“However, while restructuring may seem like a quicker fix, the opportunity cost of lost productivity and lack of clarity will lead to greater long-term challenges for the organization and will require more time, resources and funding to address the underlying issues.”

The company said that if done well, organizational design can improve performance, improve workflows, facilitate decision making, reduce costs and increase employee engagement. However, ineffective design can lead to inefficient use of time and resources, poor quality of products and services, reduced customer satisfaction and reduced employee engagement.

To help HR leaders, the McLean guide outlines organizational design principles, including change management, strategic alignment and governance, as well as steps to conduct a current state assessment and develop a new model.

Specifically, McLean advised HR and other senior leaders to prioritize change management from the beginning and at every stage of the organizational design process. This includes considering people implications, such as requirements, impacts or outcomes on talent and talent processes.

Beyond that, effective organizational design relies on meticulous planning and communication, and careful sequencing of communications to support sustainable change, Gharib added.

Today’s Work redesigned to adapt to evolving company needsAccording to another report by McLean & Co. The report found that work that aligns with organizational goals is associated with improved productivity, reduced turnover, and better engagement.

As part of the change management process, leaders should: Consider the role of AI in the workplaceWith the right integration and communication plans in place, including specific tasks, skill-building opportunities and employee communications, AI can increase productivity, performance and agility, said a change management expert at George Mason University.

In fact, in companies that are introducing AI, many leaders They are already changing their organizational structure To adapt, the majority of leaders are developing a change management strategy, implementing employee communication plans, and planning significant AI investments to make it work, according to the Pearl Meyer report.