Firms often think about Organizational Design as how a company looks on an org chart. When you look deeper, Organizational Design is multidimensional. It is made up of 12 key components that are interconnected and can act as key differentiators of a company.
At EFCG’s 2023 CEO Conference, we walked through this framework and discussed when it makes sense to change how a business is organized…and when it does not. EFCG surveys reveal that reorganizations focused on driving alignment to strategy and improving ways of working were generally seen by executives as having the highest levels of success. That being said, AEC firms estimate that restructuring P&Ls can cost up to 3% of Gross Revenues.
If this cost represents too substantial of a risk, which of the other 11 components might you adjust? If this cost is viewed as a worthwhile investment, how confident is leadership that the restructure will enable the company to achieve its goals?
For more information on EFCG’s Organizational Design consulting services, contact:
Vishal Menon
EFCG Senior Advisory Associate
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