Services & Programs

Organizational Design

An efficient and effective organizational alignment is one of the key components in the delivery of bottom line results. An organization must support the corporate directive and be clear on its mission.

Organizations evolve from a series of decisions over an extended period of time, oftentimes leading to a conglomeration of activities assigned to various units which lack of clarity in their mission. When the organization lacks clarity in its mission, often the results are conflict, confusion, and a lack of accountability. When this occurs, the organization should be realigned and the business refocused.

THE LOBUE APPROACH

The LoBue approach to Organizational Design is to build the organization around process and business objectives. The LoBue Process Rationalization program provides a foundation for the design of the organization. As the process is streamlined, so becomes the organization, with clear assignment of process and service responsibilities.

While process rationalization lends itself to proper organizational design, a reorganization effort has a series of implications that need to be managed. Most notably, a reorganization can have a major impact on staff, especially in the short-term, and requires planning and proper execution. LoBue provides all the support needed for a reorganization effort. Examples of this includes:

  • Training
  • Internal and external communication program
  • Clearly written job descriptions
  • Staffing models
  • Service Level Agreements
  • Established performance indicators

REAL RESULTS

Many positive effects come from the LoBue method of organizational design:

  • Eliminates duplication of effort as processes cross fewer organizational lines
  • Establishes appropriate staff to manager ratios and limits the number of management layers
  • Makes accountability more clear
  • Focuses organizational units on specific objectives consistent with the corporate mission
  • Streamlines and focuses management reporting

In consulting assignments involving process improvement and business restructuring, LoBue will conduct an organizational assessment, and will often recommend realignment, which will refocus the corporation on the corporate mission.

  • LoBue reorganized a Bank Operations Division by consolidating functions throughout the business into central units, The Central Operations Division was organized according to the key lines of business. Service level agreements were established for each operational unit to satisfy the customer needs within each business line. Management reporting reflected the objectives of the business and key indicators were used ensure service levels were met. The result was a central operations organization that matched the business objectives and met the company mission for customer service.
  • A major reengineering program resulted in a significant reduction in process steps and hand-offs, consolidation of physical sites, establishment of shared services functions, among other operational improvements. LoBue established an organizational structure that gave process owners full accountability for service delivery. Job Descriptions were updated accordingly and key performance indicators were established to include in monthly management reports. Each process owner (Unit Manager) established existing and target unit-cost and service measurements to manage against. The business objective became more clear and service improvement followed.

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