Building Effective Organization

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Any organizational restructuring is basically a change initiative. Success depends on managing resistance to change by convincing the remaining workforce of the need for change and the possible benefits, an effective communication system to lend clarity to the change process, and effective leadership. If you are driving change or simply trying to realize more value from your plans,building effective organizations is the key to turn your strategy in to success.

At VPC, we work closely with executive teams to solve their business issues to build organizational processes and capability, in order to implement strategy effectively and steer the organization to success. A key component ofbuilding effective organizationsis to ensure that your core operating principles, organizational structure, performance framework, management processes, culture, and job accountabilities are fully aligned to your strategy, and that they deliver improvements in performance.

VPC’s team works to establish clarity and gain commitment to goals, create the right models for success, and then work with the organization to ensure that this is implemented in a manner that creates visible change and movement.

Our teams are well equipped to address this kind of business challenge. We always focus on the bottom line and delivers value to your business.

Learn more about how VPC helps clients build effective organizations. Contact us.

Building Effective Organisation

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V People has a comprehensive tool kit to help companies address decision difficulties and other organizational barriers to performance. We have completed more than 2,000 organizational assignments in the last five years, spanning every major industry and geographic region. Our areas of expertise include:

Decision and organization diagnostic.Our diagnostic tool helps pinpoint decision difficulties and identify root causes. Benchmarking your organization against V People's database of more than 1,000 companies can show you exactly how you measure up and help you identify specific issues to address to set your organization up for success.

Organizational design and restructuring.The starting point for a successful "reorg" is the decisions that create value, not the boxes and lines of the org chart. Our approach helps companies structure their operations around the key sources of value in the business, remove unnecessary complexity and set up an effective operating model that allows the company to realize its strategic objectives.

Decision effectiveness.V People's five-step program, described in our bookDecide & Deliver, helps you identify key decisions, X-ray each one to determine problem areas and reset those decisions for maximum effectiveness. It helps you strengthen weak elements of the organization and embed good decision making and execution in your everyday operations.

Role of the center.Examining the role of the center helps CEOs of companies with ineffectual structur

Big Data- The Organisational Challenge

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An effective organization can give companies the edge that sets them apart from the competition. The payoff can be significant: Our research has shown that high performers report total shareholder returns nearly six percentage points higher and their employees are far more likely to recommend the company as a place to work—a powerful indicator of engagement. The secret: decisions. The best performers make better decisions, make them more quickly and execute them more effectively. And they don't spend too much or too little effort in the process.

V People has a comprehensive tool kit and team of global experts to help companies break down organizational barriers and address decision inefficiencies to get to high performance. Working jointly with our clients, we start with a focus on which decisions matter most to overall performance. Small, everyday decisions can matter as much as big strategic ones. We then build integrated organizational systems that are explicitly geared to support these key decisions. We go beyond the "hard" issues of structure, roles and processes to addresses the "soft" elements such as people, behaviors and culture.

Our ultimate objective is to embed new capabilities and repeatable processes so that people at all levels can decide and deliver, again and again.

Four Paths to a Focused Organisation

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CEOs worry about having the right people in key jobs—they know it's key to ensuring great decisions and execution. But most are frustrated by the time and effort it takes to kick-start their organizations' talent machine. Building a talent-rich organization is in fact a multiyear challenge. But three specific steps will not only have an immediate impact on a company's talent supply, they will also lay the foundation for longer-term moves.

Quantify the talent gap.A rigorous analytic picture of the gap between the supply of and demand for talent makes the challenge visible. Suddenly the talent issue can no longer be shuffled off to the human resources department; it is now on everyone's agenda, including that of the board.

Deploy existing talent more effectively and recruit selectively.Too many companies suffer from "grade inflation" and don't know who their top performers are. As a result, those individuals may not be in the jobs with the greatest impact on key decisions. Identifying those jobs and filling them with highly skilled individuals, recruited externally if necessary, can have a big impact on performance.

Reduce the demand for talent.Organizations that simplify their processes and clearly spell out accountabilities can simultaneously lower costs and reduce the need for specialized skills. One South Africa-based mining company, for example, standardized production methods, equipment, engineering and so forth across all its mines and processing plants, making it eas

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Corporate restructuring can be driven by a need for change in the organizational structure or business model of a company, or it can be driven by the necessity to make financial adjustments to its assets and liabilities. Frequently, it involves both. Companies restructure for a variety of reasons:

Internal reasons behind corporate restrucuring-

Profitability below expectations

Stagnant or decreasing revenues,

Too low gross margin,

Too high operating costs,

Bad cash flow,

Over- or under-investment,

Productivity/KPIs below market standards,

High labour costs,

Unclear roles & responsibilities,

Poor internal communication,

Lack of leadership,

Bad design of processes,

Marketing budgets allocated ineffectively.

To reduce costs

To concentrate on key products or accounts

To incorporate new technology

To make better use of talent

To improve competitive advantage

To spin off a subsidiary company

To merge with another company

To decrease or consolidate debt

External reasons behind corporate restructuring -

New consumer trends

Innovations that redefine the market

Company’s market share decrease due to actions of competition

Most companies declare their commitment to address market changes in their strategies, but not many of them really realize this goal in practice. Deep restructuring is not an easy fix and requires radical changes in distribution network, channel management, supply chain, HR policy, production and its sourcing, communication with consumers, product/category management, etc

Building a Winning Culture

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For more than 40 years, V People's superior capabilities have helped thousands of clients in every industry develop and deliver winning strategies.

We see things others miss, offering you more creative solutions that combine deep geographic experience, intimate sector knowledge and clear insights into how to create value in business.

We work collaboratively, build lasting capabilities into your team and help your organization mobilize for change.

We define our success by your results, we enjoy our work and have fun doing it, and we care deeply about our clients as people.

V People believes that all value-driving strategies must:

Targetsustained value creationthrough leadership in chosen markets and segments

Be based on a robustdefinition of boundariesbetween markets, discovered through correctly analyzing cost and customer sharing

Understand a company's position in the"F-E-R" growth cycle: focusing to achieve core full potential, expanding through adjacencies, or redefining the core

Clearly define whichleadership modelto pursue: cost, differentiation or industry influence

Involve the choice of whether to play by or to challenge the established industryrules of the game

Definerepeatable modelsthat allow you to win again and again

Identify what it will take to win in terms oforganizationand capabilities

Bedynamic and flexible, with contingency plans for reacting to leading indicators of external changes

Beimplementable:that is, be achievable, affordable and focused

Founders Metality: Path to Great Repeatable Models

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Defining and Creating a High Performance Organisation

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