Organizational Planning and Design

Organization Design (commonly referred to as Org Design) integrates the Human Capital in the organization with its Vision, Mission, and Goals. But it consists of more than developing and distributing an Org Chart. Org Design defines the formal relationships among the organization’s leadership, staff, and volunteers. Thus, good Org Design should:

  • Outline how to group people together to perform their work
  • Ensure that all interested parties understand why the organization exists
  • Define how the individual efforts of the Leadership and Staff contribute to delivering high-quality programs and services to the marketplace

Effective Organization Design directs the organization’s collective efforts towards the desired results. Consequently, the organization’s stage in the Business Life Cycle (whether Start-up, Growth-oriented, Mature, or Declining) and target customers/markets influences Org Design.

  • Organization Design outlines key structural dimensions of the organization. Should the group organize with a clear hierarchy or a flat structure? Will the interaction among peers be more formal or fairly casual? Should the human capital perform their responsibilities under specialized position descriptions or operate as generalist?
  • Org Design determines the personnel subsystems to utilize (committees, departments, teams, programs). It also selects the work groupings (functional, divisional, matrix, or networked)
  • Organization Design assesses the impact of contextual dimensions on the organization (macro-economic conditions, geographic location, work culture, org size, dependence on and implementation of technology)
  • Organization Planning determines the communication channels, roles and responsibilities, performance expectations, and standard operating procedures that are most appropriate for the organization and each subsystem

Strategic Organization Design unifies the efforts of the individual participants in the organization. So applying Organizational protocols allow the Leadership and Personnel to define the needs of the customer and create systems that effectively meet those needs. Good systems offer an opportunity for individuals to think through the impact of their actions, and they increase the probability of a successful business operation.

Organization Design accounts for all forms of Human Capital (Board Members, Executives, Hired Staff, Volunteers, Interns, and external Partners). Personnel Management programs should be tailored to each personnel category, increasing the likelihood the group can achieve the common goals. As an additional benefit, active Personnel Management reduces conflict and uncertainty among the working groups. Personnel Management uncovers performance or quality issues before they become a detriment to the organization. Effective Organization Design programs actively manage many functional areas:

  • Individual Recruitment
  • On-Boarding and Training Programs
  • Standard Operating Procedures
  • Position Expectations and Description
  • Performance Review and Evaluation
  • Professional Development Opportunities
  • Incentive Programs
  • 360-degree Feedback

Investing in Personnel Management creates a “career path” or meaningful professional relationship between the organization and its Human Capital. When implemented successfully, strategic Personnel programs result in higher retention, superior programs/services, and long-term organizational sustainability.

Organization programs address many of the following considerations.

  • Determining whether to organize around committees, functions, processes, customer-types, geography, etc., which requires a strategic plan and long-term vision for the organization and business model
  • Streamlining and documenting core business processes to ease program management and strategic decision-making on a daily basis
  • Designing business systems and procedures that are not viewed as “micro-managing” nor received as a lack of faith in the organization’s Human Assets. Good business systems allow Managers and Staff/Employee to know how there are performing and where they are contributing to the success of the organization

Organizations operating without an effective Organization Design struggle to make strategic decisions and allocate resources. They have difficulty focusing personnel efforts towards the common goal, ensuring the desired outcome is achieved. And organizations operating without a strong Personnel Management program do not consistently measure performance nor unlock the full value of their human capital.

  • Although organization Leaders may believe that allowing subsystems to operate independently and autonomously reduce conflict and friction between individual participants, it has been demonstrated that smart organization design produces that desired result more consistently
  • Implementing change can be initially uncomfortable for all parties involved, but the right change will overweigh the brief disruption. It is an opportunity to acknowledge where prior systems and practices were not the most efficient for the organization, and move down a path towards improved operations

Organization Design ensures the work of participating individuals falls in line with the Vision and Mission of the organization. Successful Organization Design starts with the organization’s long-term strategic plan

  • Outside the business, Org Design requires a thorough Market Analysis that assesses viable business opportunities, key market and economic trends, competitive positioning, and knowledge of the customer needs and motivators
  • Inside the business, Organization Design is supported by an active Personnel Management program that engages individuals connected to the organization, capitalizing on their contributions
  • As the Human Capital moves within the organization (change in leadership, staff and personnel turn-over, new volunteers join), Organization Design programs align the new individuals with the current organizational procedures and expectations. The continuity planning ensures that internal changes do not affect the delivery of high-quality programs and services externally

Good Organization design is a balancing act, where the best controls, reasonable flexibility, and right incentives create a productive and profitable environment. Effective Human Assets Management differentiates the organization from the rest of the market. It presents the greatest opportunity to challenge and reward the individuals participating in the organization.

VMG Service Offerings
Organization Design and Personnel Management

VMG is committed to working with organizations to develop an organizational design program that includes:

  • Strategic Business Plan
  • Management structure
  • Personnel structures
  • Internal communication modules
  • Goals and performance benchmarks
  • Quality control and standards
  • Continuity planning and leadership ladders
  • Turnover/Attrition management
  • Implementing and managing change
  • Assessing consequences to new procedures

Personnel Management

  • Recruiting, Interviewing, Selecting, Hiring programs
  • On-boarding and training programs
  • Standard operating procedures
  • Position expectations and job description
  • Performance Review process and evaluation
  • Professional development programs
  • Individual and group incentive programs
  • 360-degree performance feedback