Is Your Organization Built for What’s Next?
Sarah Crown & Erica Armstrong
Organizational design has come a long way from its traditional roots. Once synonymous with cost-cutting initiatives and large-scale restructuring, today’s approach is far more nuanced, iterative, and embedded in the ongoing evolution of an organization. Rather than being a reactive measure, organizational design today is a strategic lever, one that supports agility, enhances decision-making, and ultimately fuels sustainable growth.
In a landscape of shifting priorities, new technologies, evolving market demands and changing leadership, structure can either enable or constrain strategy. In today’s dynamic environment, leaders are constantly challenged to ensure their organizations and functions are fit for purpose today and prepared for what’s ahead.
Modern Organizational Design
Modern organizational design is a continuous process of aligning structure, people and resources with strategy. Whether at the enterprise level, within an operating group, or within a single function such as HR or IT, organizational design provides a foundation for clarity, accountability and performance. Done well, it supports strategic execution by ensuring that teams are aligned, empowered, and well equipped to deliver on key priorities.
In fact, research shows that organizations that effectively align structure with strategy are 3.5 times more likely to outperform peers in terms of revenue growth, profitability, and total shareholder returns (Bain & Company). Conversely, poorly designed structures and roles are among the top drivers of employee disengagement (Gallup), highlighting the critical link between structure and the employee experience.
When Should an Organization Look at Its Structure?
There is no one-size-fits-all reason to undertake an organizational design initiative. Common triggers include leadership changes, anticipated growth or downsizing, mergers and acquisitions, or a shift in strategic direction. Often, the need for change surfaces in the form of pain points, such as:
- “We’re not clear on who owns what.”
- “We’ve outgrown our structure.”
- “We’re siloed.”
- “Decisions take too long.”
- “There’s conflict or duplication.”
- “Our org chart doesn’t reflect how we actually work.”
These are all signs that it may be time to reassess your organization’s structure.
What Does Good Look Like?
Effective organizational design is not simply creating new organizational charts. It’s a thoughtful, iterative and consultative process that involves understanding strategic goals, assessing the current state including roles, processes, governance, cultures and enablers like technology. It involves identifying strength and gaps, and developing options that highlight potential pros, cons and considerations for implementation.
Typical deliverables include revised structure charts, role descriptions, implementation plans, communication strategies, and considerations for succession, talent acquisition and development, and change management. Change doesn’t always need to happen all at once, we often see a phased implementation plan that takes into account potential succession plans or anticipated changes in the business.
The goal is to create clarity across the organization. When people understand how their work connects to the strategy and where they fit within the bigger picture, they’re more engaged, more productive, and better able to collaborate across teams. The organization, in turn, becomes more agile, responsive, and better positioned for achievement of its goals.
Designing with Purpose
At Royer Thompson we help organizations navigate the complexity of organizational design with a balanced approach, one that combines strategic insight with practical implementation. Whether you're facing a larger transformation or simply want to make incremental improvements across the organization or within a function, organizational design can be a powerful tool to enable performance, align your people with your purpose, and build a stronger foundation for the future.
Now more than ever, the question isn’t if you should be thinking about organizational design, it’s how intentionally you’re using it to drive impact.