Organization and Culture
In today’s dynamic world, people and culture have become organizations’ real sustainable competitive advantage. Advantages in business are coming and going at faster rates, and thus people and the culture they represent remain the key driver for edging competition. The most critical and common obstacles to strategy realization are usually related to the organization. Hence, at Caliber Consulting our projects always put a major emphasis on this area. There are three types of alignment required for successful strategy execution
- Strategic (alignment of corporate and business unit strategies)
- Operational (operational, process, and budget alignment to strategy)
- Organizational (structure, systems, and culture aligned to the strategy)
All three need to be working in synchronization for optimal strategy realization to take place. However, probably the least emphasis is given to the organizational level of alignment, although inspirational and execution focused leadership underpinned by a culture of performance is what makes strategies succeed. This alignment revolves around six key areas of the organization.
If strategy represents the compass of the ship, and operations the engine, then people and culture are the captain, crew, and spirit of the ship. Without them the ship will never take off from its dock
Organization and Culture Case Studies
HR strategic transformation at Educational Institution
With a bevy of complaints directed to HR, a leading educational institute in the GCC decided it was time to transform the HR function to better meet the needs of the organization.
After a detailed assessment, it was discovered that most of the organization was satisfied with the administrate functions (payroll, leave processing etc.) but major issues existed in the strategic functions. A roadmap was set to strategically transform the HR function to put more emphasis on elements such as manpower planning, rewards and recognition, individual performance, and talent management. Redesign of the HR structure and recruitment of fresh talent was key, as well as the re-engineering of some of the current HR processes, to better suit the needs of its customers.
Cultural Transformation at Leading Automotive Distributor
Leadership at a leading Automotive distributor in the GCC saw that they key to improving customer engagement and consequently loyalty and spend, was to make sure employees were in the right roles and engaged.
A major employee and customer engagement program was launched which pinpointed which customer branches and departments were the lowest engagement areas. The trends were eye-opening, with a high correlation between performance of branches and employee engagement. From this analysis, a series of interventions which included training, process re-engineering, and incentive schemes (to promote certain behaviors) were implemented both in the organization and in the branches. A year later there was a 30% increase in overall employee engagement accompanied with a 15% increase in branch performance.
Optimizing Organizational Design at Saudi Industrial Group
With a new strategy in place, a multifaceted industrial group based in the eastern region of KSA, knew that an accompanying change in structure was required.
In addition, many legacy issues from previous management teams remained embedded in the structure and an overhaul was due. Firstly, a gap analysis was conducted comparing the new strategy and current structure, identifying the need to formulate new structures and merge others. Moreover, the new strategy promoted more control leading to some functions being centralized. In addition, processes were also mapped and analyzed for each department, determining areas where structure didn’t support the daily operations of some of the units. With this information along with benchmarks and client feedback a new organization was re-designed and a medium term roadmap was devised to ensure its successful implementation.