Amid uncertainties: Organisations restrategise to drive productivity, creativity
Global business and Human Resources (HR) leaders are rethinking organisational structure, in order to enhance productivity and creativity. They say given growing decline in profit margins, shorter product shelf life, a digitised knowledge economy and a younger more globally diverse workforce organisational redesign has become necessary.
In a recent report by Deloitte a multinational professional services firm, on Global Human Capital Trends, global business and HR leaders have identified organisational redesign as a priority for the first time. Companies are moving away from traditional business models toward building cross-functional “networks of teams” to become more agile and customer-focused. Though only a few know how to achieve the goal.
The report is based on a survey of 7, 096 business and HR leaders, in 130 countries, and it contends that organisations are changing rapidly in the way they are designed.
“Our findings in this area are startling: 92 percent of companies believe that redesigning the organisation is very important or important, making it No. 1 in ranked importance among this year’s respondents. Companies are decentralising authority, moving toward product- and customer-centric organisations, and forming dynamic networks of highly empowered teams that communicate and coordinate activities in unique and powerful ways” the report explained.
Olufunke Amobi, Head, Human Capital at Stanbic IBTC at a recent event contended that redesigning the organisation tops the list of critical priorities because there are significant changes in both the microeconomic and macroeconomic environments. She said “there is increasing decline in profit margins and the shelf life of products. Organisations of the future would be nimble, in order to stay innovative and competitive. Five year strategy formulation is no longer viable. Every organisation would need to annually review its strategy and structure.”
Fidelia Osime, country organisation & human resources director, LAFARGE, highlighted that corporate organisations are changing rapidly because those born from early 1980s to 2000 are by far the majority at the workplace today and are much more interested in experiencing, exploring, and learning.
“They want coaching and mentoring. They want to be globally relevant and are globally mobile. They are not interested in jobs or money for their own sake. The ‘new organisation’ can only thrive, when it is redesigned with these needs in mind”, she said.
Osime added that to become functional, organisations must be driven by an established culture of excellence, which in turn has to be driven by the design of the organisation. She said, “Where the design is not functional, things simply fall apart.”
Digital technology is now everywhere, disrupting business models and radically changing the workplace and the way work is done. Technologies such as mobile devices, 3D printing, sensors, cognitive computing, and the Internet of Things are changing the way companies design, manufacture, and deliver almost every product and service, while digital disruption and social networking have changed the way organisations hire, manage, and support people. Innovative companies are figuring out how to simplify and improve the work experience by applying the disciplines of design thinking and behavioural economics, embracing a new approach that we call “digital HR”, the report says.
The rate of change has accelerated. Fifty years of operating under Moore’s Law— the axiom that computing power doubles every two years—have not only propelled technology innovation forward but also significantly increased the pace of change in business as a whole, requiring organisations to be more agile. Rapid business-model innovation from companies such as Uber and Airbnb is forcing organisations to respond and reposition themselves quickly to meet new challenges.
A new social contract is developing between companies and workers, driving major changes in the employer-employee relationship. The days when a majority of workers could expect to spend a career moving up the ladder at one company are over. Young people anticipate working for many employers and demand an enriching experience at every stage. This leads to expectations for rapid career growth, a compelling and flexible workplace, and a sense of mission and purpose at work. Today, contingent, contract, and part-time workers make up almost one-third of the workforce, yet many companies lack the HR practices, culture, or leadership support to manage this new workforce.
STEPHEN ONYEKWELU