Latest / The Science of Leading / Assess First: A Practical Guide to Org Design
Transcript
- 0:00Welcome back to Science of Leading, I'm Claire Monroe with Edwin Carrington.
- 0:03Edwin, we've spent two episodes on why structure matters and what a failing one
- 0:07looks like.
- 0:08Today I want the actual process.
- 0:10If a leader accepts they have a design problem, what do they do Monday morning?
- 0:14Monday morning, they do not touch the org chart, Claire.
- 0:17That's the mistake almost everyone makes.
- 0:19They redraw boxes before they know what's actually broken.
- 0:23The process starts with facts, not a redesign.
- 0:26So step one is assessment.
- 0:28Step one is assessment, and it's specific.
- 0:31Where does work slow down, cycle time, backlog, rework.
- 0:35Where does quality drop, defects, customer complaints.
- 0:40Where is talent risk rising, turnover, internal transfers, burnout signals.
- 0:45And where do decisions stall, approval queues, meeting load.
- 0:50You're not guessing at this.
- 0:52You're using validated behavioral data and quick surveys to find the actual pattern
- 0:56by function, by layer, by team.
- 0:59And step two builds on that.
- 1:00Step two, you map decision rights.
- 1:03What are the key decisions that actually drive outcomes, who currently decides them,
- 1:08who should decide them based on who's closest to the information,
- 1:11and what are the real reporting lines and escalation rules.
- 1:15This is the step where most leaders discover their real structure isn't the org
- 1:19chart at all.
- 1:21It's the influence network.
- 1:23That's such an interesting way to put it, the org chart tells you the fiction and
- 1:26the influence network tells you the truth.
- 1:28Exactly.
- 1:29Once you have both maps, the fiction and the truth, step three is fixing role design
- 1:35before you touch a single box.
- 1:37Simplify role descriptions.
- 1:39Remove overlap.
- 1:41Define authority and accountability explicitly.
- 1:44Set decision rules for the choices that come up again and again,
- 1:48so people aren't relitigating the same call every month.
- 1:51And that alone creates lift, before anyone's even reorganized anything.
- 1:55Immediate lift, and it's nearly free compared to a reorg.
- 1:59Step four is where discipline matters most.
- 2:02Pilot the new design in one area.
- 2:05One department, where the workflow is measurable, the leader is genuinely committed,
- 2:09and you can compare before and after with real numbers.
- 2:13You do not roll out a new design company-wide unless chaos is the goal.
- 2:17Deloitte's research on this actually backs up how rare the discipline is.
- 2:21They found plenty of leaders say redesign is a priority, but far fewer feel
- 2:25confident they can actually execute it well.
- 2:28That confidence gap is almost always a cadence gap.
- 2:31People try to do a bold, one-time reorg instead of a disciplined pilot.
- 2:36Which brings us to step five, collect the feedback, both kinds.
- 2:41Quant is KPI movement, cycle time, quality, engagement and retention signals.
- 2:48Qual is where confusion increased, where decisions got faster or slower,
- 2:53what got easier or harder for the people actually doing the work.
- 2:56And step six.
- 2:57Step six, you treat it as a cadence, not an event.
- 3:02Quarterly review for friction and KPI drift.
- 3:05Semiannual review for structural changes.
- 3:08Annual review for strategy alignment and capacity planning.
- 3:13Across OAD's own data, ten million assessments, more than forty countries,
- 3:18the organizations that treat this as an ongoing rhythm outperform the ones that
- 3:22treat it as a once-a-year event, every time.
- 3:25Okay, so let's talk about the KPIs themselves, because step five said "collect
- 3:29feedback," but what are you actually measuring on an ongoing basis,
- 3:33not just during a pilot?
- 3:34Three layers, and if you're missing one, you're flying with half the instruments
- 3:38dark.
- 3:39Layer one is business outcomes, revenue growth or margin, customer satisfaction and
- 3:44retention, quality metrics like defects and escalations, and time to delivery.
- 3:49That's the layer everyone already tracks.
- 3:52And layer two is the one people skip.
- 3:54Layer two is the execution system itself.
- 3:57Decision cycle time for the decisions that actually matter.
- 4:00Handoff failure rate, rework, reopened tickets.
- 4:04Meeting load and approval queues.
- 4:07Time to fill and time to productivity for critical roles.
- 4:10This layer tells you why layer one is moving, not just that it moved.
- 4:15And layer three?
- 4:16Layer three is people and capability.
- 4:18Engagement, regrettable turnover, internal mobility and promotions,
- 4:23manager effectiveness signals like span health and coaching cadence.
- 4:27Gallup's meta-analysis is the reminder here, engagement correlates with
- 4:32productivity, profitability, and turnover directly.
- 4:35It's not a separate HR report nobody reads.
- 4:39It belongs in the same review as revenue.
- 4:41So the leaders who get this right are looking at all three layers together,
- 4:45not picking their favorite one and ignoring the rest.
- 4:47That's the whole discipline, Claire.
- 4:49Business outcomes tell you what happened.
- 4:52Execution indicators tell you why.
- 4:55People indicators tell you whether it's sustainable.
- 4:58Miss any one of the three and you're managing blind on that dimension.
- 5:01If you want to see where your own team sits across those layers before you run a
- 5:05pilot of your own, OAD has a free Top Performer Profile, real behavioral data on
- 5:10your people in about seven minutes, results in twenty-four hours,
- 5:13no credit card.
- 5:14That's O-A-D dot A-I.
- 5:16Assess first.
- 5:17Redesign second.
- 5:18In that order, always.
- 5:20Perfect place to leave it.
- 5:21Thanks, Edwin.
- 5:22Always, Claire.