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Understanding the Impact of Organizational Redesign

By Marc Brown | September 20, 2018 | 0 Comments

MarketingMarketing Organization and Operations

Organizational transformation, done well, can deliver significant improvements to team performance because it optimizes the alignment of the organization with its mission. This can improve customer experience, personalization, speed to service, staff morale and engagement, in addition to, optimizing costs.

However, marketing leaders should not forget that organizational transformation is a complex undertaking with no guarantees. So carrying out a marketing organizational redesign is not a stand-alone endeavor. Having a strong team of independent advisers assisting the transformation throughout the project and sharing optimize design options seen in other organizations enable the project to avoid the implementation pitfalls and help the process to be carried out successfully. Its common, when you work within an organization, to be so involved in the details, that you lose sight of the most essential parts. Moreover, it’s important to have external points of view to ensure that the end goals of the project are not grounded in political games.

Things to consider:

  1. Is organizational design the right solution for your marketing strategy and engagement issues? It is vital to be clear on the reasons for undertaking a redesign. Can you objectively state how each planned change will create greater value? Will the organizational design improve planning? execution? costs? quality?
  2. Your future organization is not based on structure alone. Marketing leaders need to evaluate how changes to their organization will affect the overall system – other groups, processes, and technology platforms.
  3. How will existing enterprise reporting authority, budget ownership, or political barriers constrain your future organization?
  4. What processes do you have in place to support positive change management?

Every organizational design must provide transparency around ownership, who will do what, and the level of control each team has over their activities. As recent studies reveal, highly efficient collaborative organizational designs will yield compelling business value.  For example, companies that are best-in-class at optimizing their marketing organization see a 76% higher contribution to revenue from marketing and enable sales to deliver an average of 20% growth in annual revenue. Laggard organizations, in the meantime, experience a 4% decline in annual revenue.

See ‘Marketing Organizational Structure: What Should Marketing Leaders Centralize or Decentralize?‘ for more guidance and insights.

The more significant, urgent part, is to change how your organization works. Now, more than ever is the time to challenge traditional organizational structures, empower teams, hold people accountable, and focus on building a culture of shared information, shared vision, and shared direction.

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