Trends in Organizational Transformation

Describe about the business decision. Explain the review of the process and methodology.
 

Currently, there is a trend in the world on transforming organizations. This has created a hard task for the managers and other leaders of the organizations in leading these organizations to the future. Personnel development, decentralization, and involvement are some of the ways coordination is maintained in the organizations, and this ensures continuous productivity (Hagenow 2010). Significant changes that have been occurring in organizations has been for purposes of focusing on sustainability as a method of organizational development. The process of managing sustainability has been a challenge for the organizations since they are required to create a framework that combines its economic performance with environmental and social aspects. Sustainable development in organizations is important to achieve and retain economic success by ensuring that the organization is marketable. In recent years, the number of organizations undertaking organizational restructuring has increased.

However, studies have shown that the restructuring is not adequate in ensuring the sustainability and development of the organizations. Organizational transformation is achieved best through the implementation of new cultures and climate in the organization and this improves the values and beliefs of the employees(Almond &Ferner 2010). Another proper role in the restructuring of organizations is the change and implementation of management practices. Also, understanding the functionality of the top management jobs provides the organization with a proper way of restructuring thus ensuring its competitiveness in the market. Organizational transformation planning entails all the activities the organization needs for purposes of ensuring new strategies, business models and the technology to ensure the process is successful(Machaba2013). There are some key principles on organizational transformation planning and implementation. The key principles include effective planning, committed sponsorship, proper objectives, engaged stakeholders, and proper resources and support(Green&Butkus2013). This organizational transformation plan will entail determining the strategy of restructuring through team meetings, review of the methodology process, acquisition of data, apply the methodology to develop the proposal, submission of the confidential peer rating, and SCA and PCA assessment of my peers.

The identification of the strategy to use in the organizational transformation process was decided after carrying out a brainstorming meeting with the team members. The strategy was determined depending on several factors. The first is the degree of resistance; there is always a group of people in the organizations that are always resistant to any change due to self-interests, poor communication, feeling that they are excluded in the process, and training death(Washington,Hacker & Hacker 2011). However, managers who are experienced are well aware of this issue and conduct research first, on who will resist any organizational restructuring(Strebel 2012). Dealing with resistance includes imposing proper communication and education, ensuring participation and involvement from the resistant group, manipulation, facilitation, and negotiations and agreements. The second factor in determining the strategy to be used in the restructuring process is the target population. Organizational transformation always has the people or population that are targeted in the process, and this population can be reached properly depending on the strategy used.

Challenges of Organizational Transformation

Different population targets can be reached by different strategies of restructuring thus the population has to consider in the planning process and in meetings before the strategy is determined(Levy & Merry 2011). The time frame is also a significant factor about the strategy to be used in organizational transformation. Some strategies of organizational transformation take more time compared to others and. Therefore, the time frame provided in the plan or by management is a major factor in the determination of the scope or strategy. If the organization needs the restructuring process over a short period strategies that are simple and faster to execute are chosen. However, if the organization needs its restructuring process to take a longer period, then complex strategies that require careful planning and implementation are chosen (Fletcher 2015). The fourth factor in the determination of the strategy an organization can use in restructuring is the expertise. Skills and knowledge are critical for the organization to achieve its restructuring goals. Different strategies require a different set of skills in the process of organizational transformation. If the expertise available is not good, then the planning team has to choose a simple and easy model of restructuring.

However, if the skills and knowledge available are of high standards, then complex strategies of organizational transformation are chosen. Dependency is the fifth factor of consideration in the choice of the right scope for organizational restructuring. The need for cross-dependency among various departments in the organization creates a major problem in the restructuring planning and execution. The strategy to be used in restructuring is very critical and therefore the issue of cross-dependency should be put into consideration(Whitsett& Burling 2014). Some strategies of organizational transformation can even lead to some departments being done away with, and if other departments were depending on it, then there will clearly be a problem. Before we chose the strategy in our brainstorming meeting, we considered this aspect. Finally, the stakes involved comes in as a factor in the determination of the strategy to be used in restructuring. If the stakes involved in the organization transformation are high, then different methods are chosen as compared to if the stakes involved are low. High stakes involve choosing of complex strategies of organizational transformation that need careful and proper planning and execution while low stakes will lead to the simpler strategies of organizational transformation being chosen.

With all these factors considered, and after several discussions in the brainstorming meeting, the team was able to come up with the scope or strategy to be used in restructuring for the case of XYZ Company. The team was able to choose the horizontal process redesign for restructuring XYZ Company. It is a simple strategy to implement and several of the factors above, for example, the aspect of resistance to restructuring made us chose the strategy. 

Key Principles for Organizational Transformation

The horizontal process redesign is the reconfiguration of the organization for gaining competitive advantages and significant improvements in the quality and production of the organization(Fry 2012). This restructuring strategy is based on the knowledge and foundation of system thinking. System thinking is an important aspect as it provides the organizations with a new process as opposed to the traditional processes of viewing organizations. Also, system thinking provides the connections between the important aspects of the organization and how the aspects have to be balanced to achieve desired restructuring results. It tries to show and evaluate how several organizational aspects are related and how they depend on each other to enable maximization of its effectiveness. Its functionality is opposed to the traditional methods where each aspect or department in the organization sets its goals and aims to achieve them.

Proper management of a system or organization requires proper knowledge of how all the components within the organization are interrelated(Espejo2011). The horizontal redesign is similar to total quality management as it allows organizations to be viewed as being incorporated into several processes that produce desired results for the customers. Horizontal process redesign focuses on the essence of restructuring a small number of aspects of the organization that still cross the traditional boundaries. The understanding of the horizontal process has, however, has been seen as the process of restructuring all the three levels of the organization top, middle, and bottom. However, for the organization to avoid the issue of sub-optimization, it is advised that it should start from the top(Washington & Hacker 2011).

Several models have been put forward in the horizontal process of organizational transformation. For the XYZ Company, we decided we would implement it using the Meyer model.

Data collection

Data collection is an important aspect in carrying out research and planning of organizational transformation. Sources of data for organization restructuring were from functional impact spreadsheets, which provide a date in the form of spreadsheets to aid in critical decision making in the restructuring process. Project meetings are the other sources of data where the team members gather and brainstorm providing important and first-hand data, to be used in planning of the organizational transformation of XYZ Company(Herson2013). Site visits is another method that will be used by the team to gather important data. Site visits involve physically visiting departments and conducting interviews to identify flaws and any problems in the company, and this will help us in establishing the main areas that need restructuring.

Determination of the Strategy

Questionnaires will also be formulated and sent to employees of the company. From the feedback of the employees, the organization’s planning team will be able to establish the departments that need restructuring or production methods that need restructuring. Technical requirements of the associated software can provide a good source of data to be analyzed and thus enable effective restructuring of the company. With all the methods and sources of data collection identified the team then starts the data collection process within a set period and all the data collected is required to be submitted for analysis. 

This Mayer model strategy involves several steps (Keen 2013), which are:

1. Recognizing of the performance gaps- for the organization to consider the fast cycle time for implementation of organizational transformation it is important to point out any performance gaps in its functionality. The performance gap can be in management, capital or the performance of competitors. If the gap has been established to be large enough for the organization to peruse then the management need to be informed and all the involved executives are educated on fast cycle time and how to achieve it. The aspect of a performance gap is determined based on site visits, benchmarking and getting information from suppliers and customers.

1. Strategic alignment- this step is carried out for ensuring that the structure, objectives, and strategy of the organization are well established and ensured that they are aligned with each other. The management should be in opposition to show the organizational value proposition. Fast cycle time should be incorporated into other initiatives that are already running in the organization for example initiatives that are quality related.
2. Identification and selection of processes to be used in value delivery. The team leaders then will select the processes of value delivery that need restructuring. It is important to focus on all the aspects of the organization to enable proper selection of the value delivery processes. Also, a structure is established for managing the overall issue of restructuring. 

1. Selection and implementation of multifunctional teams- the multifunctional teams are the work structures that are permanently put in place of the present functional organization. The teams create a culture of value delivery to the customers, a place of iterative learning, and a flexible tool for managing organizational transformation. The multifunctional teams are used for running the organization and product development.
2. Designing the process of fast cycle time- after the multifunctional team has created a strategy of how the process works at present, the process needs analysis, and all the activities that do not provide any value are extracted. The team then has the responsibility of restructuring the strategy, and a new map is drawn. All the structures in the should map are defined and then implemented.
3. Implementation of the process measurements- this step involves shifting the measures of performance of the company to allow monitoring of cycle time. These measures show the employees on the management consideration regarding the transformation process, and thus, they should be kept to just a few people.

1. Ongoing strategy and monitoring of the implementation process- the individuals on the top of management are not in a position to delegate fast cycle time in the transformation process.

As the restructuring process goes on, new and harder challenges will often arise and thus the requirements for new solutions. Monitoring of the restructuring process is a very important step as it ensures correction in case of any mistakes made and thus an efficient and effective transformation process. 

The design of the organizational transformation plan is a team effort and contributions of the team members have to be equal. However, this is not always true. To create fairness to individual members of the team, there might be a need to raise or lower the grade for the individuals who have given more or less contribution(Sethi& King 2012). Any adjustments are made on the confidential peer evaluation. Each team member is given a form which is to be completed and submitted.

Confidential peer rating is assigned based on his or her performance. The ratings are as follows 5-exceptional, 4-very good, 3-acceptable, two okay but need work, and 1-unacceptable(West &Markiewicz2014).

References

Almond, P., &Ferner, A. (2010). American multinationals in Europe: Managing employment relations across national borders. Oxford: Oxford University Press.

Hagenow, N. R. (2010). Management restructuring: Options and opportunities.

Levy, A., & Merry, U. (2011). Organizational transformation: Approaches, strategies, theories. New York: Praeger.

Herson, J. (2013). Industrial restructuring of small firms. Oxford, Eng.: Pergamon Press.

West, M. A., &Markiewicz, L. (2014). Building team-based working: A practical guide to organizational transformation. Malden, MA: Blackwell Pub.

Fletcher, B. R. (2015). Organization transformation theorists and practitioners: Profiles and themes.

Fry, R. E. (2012). Appreciative inquiry and organizational transformation: Reports from the field. Westport, Conn: Quorum Books.

Kaplan, R. S., & Norton, D. P. (2014). The strategy-focused organization: How balanced scorecard companies thrive in the new business environment. Boston, MA: Harvard Business School Press.

Sethi, V., & King, W. R. (2012). Organizational transformation through business process reengineering: Applying the lessons learned. Upper Saddle River, N.J: Prentice Hall.

Machaba, L. L. (2013). Business restructuring: Some reflection on tranfers of employment contracts in the context of outsourcings.

Green, T. B., &Butkus, R. T. (2013). Motivation, beliefs, and organizational transformation. Westport, Conn.: Quorum Books.

Moynihan, D. P. (2011). Business and society in change. New York: American Telephone and Telegraph.

Keen, P. (2013). Organizational transformation through business models: A framework for business model design. AÌŠbo: AÌŠboAkademi University.

Strebel, P. (2012). Breakpoints: How managers exploit radical business change. Boston, MA:Harvard Business School Press.

Uhl, A., &Gollenia, L. A. (2012). A handbook of business transformation management methodology. Farnham, Surrey, England: Gower.

Williams, C. (2013). Effective management. Australia: Southwestern.

Zilka, C. (2010). Business restructuring: An action template for reducing cost and growing profit. Hoboken, NJ: Wiley.

Espejo, R. (2011). Organizational transformation and learning: A cybernetic approach to management. Chichester: Wiley.

Washington, M., Hacker, S., & Hacker, M. (2011). Successful organizational transformation:The five critical elements. New York: Business Expert Press.

Whitsett, D. A, & Burling, I. R. (2014). Achieving successful organizational transformation.Westport, Ct: Quorum Books.