Creating the structures needed to succeed

Having efficient and effective organisational structures is essential for the long-term success of companies. As an organisational consultant with many years of experience, I have seen first-hand how organisations for ways to optimise their processes while also producing innovation. In this blog post, I explain the importance of organisation management and why it is a good strategy to assign innovation management to specialised units. I will also highlight the need for efficiency and effectiveness within organisations, analyse successful case studies and demonstrate ways in which companies can find the right balance to succeed in an ever-changing business world.

The key role played by organisation management

Companies are made up of a large collection of specialised departments that are actively involved in core and support processes. These seek to generate value for the company, while also being reliant on efficient processes and structures to achieve their goals. They are organised units, which is why they are also called organisations.

A company is made up of a large number of such organisations that pursue their own organisational goals alongside the company’s own goals. They also have their own active organisational culture.

Organisation management must be an ongoing process in order to continuously improve the quality of the processes and the efficiency of the structures.

Companies and organisations are dynamic entities that are constantly adapting to their environment. The success of a company is often down to the efficiency and effectiveness of its organisational structures. It is critical that they continuously optimise these structures in order to meet the challenges of a constantly changing business world. Fortunately, an organisation is able to adapt, something that is also ultimately required of them all the time.

Why departments need to manage the quality of their processes and the efficiency of their structures

If departments operate efficiently, this leads to lower costs, faster processes and better utilisation of resources. As well as that, employees can focus on their tasks instead of having to grapple with inefficient processes. Successful case studies show how companies have increased their efficiency through targeted organisation management. In 2022, for example, a well-known logistics company reduced its delivery times by 20 per cent while also lowering its warehousing costs.

In addition, managing process quality and the efficiency of structures plays a major role in helping the company improve its competitive position. In a constantly changing business world, the ability to act quickly and efficiently is crucial. Companies that continuously optimise their processes can respond with great flexibility to market changes and thus increase their competitiveness. As such, individual departments that manage their processes effectively can contribute to the overall performance of the company and help it achieve a strong strategic position on the market.

Gains in efficiency have benefits that extend beyond the boundaries of the company. They are reflected in how the company is perceived by customers and business partners. Companies that market themselves as efficient and proactive not only create trust, they are also seen as reliable partners. Which is why process quality management is becoming a key factor for success not only within the company but also on the competitive marketplace.

Why companies need to outsource innovation management

As a driver of a company’s success, innovation is much more than just an add-on to established processes. Unlike the core focus on efficiency that is prevalent in many areas, innovation is primarily geared towards effectiveness. This means that the goal is not only to optimise existing processes, but also to create new approaches that steer the company in new directions.

Needless to say, all processes within a company – and therefore all processes within the individual organisations – should be geared towards the company’s and organisation’s goals. However, because the goals are subject to frequent change, this is often difficult to ensure in each unit.

Innovation processes are by their very nature not as linear as conventional business processes. They require flexibility, creative freedom and a willingness to take risk, which are at odds with the stable, efficient processes that form the foundation for operational success in many departments. In an environment where the focus is on efficiency and process optimisation, integrating innovation principles can prove to be a challenge.

To successfully integrate new innovations into day-to-day operations at a company, it is critical to find a healthy balance between maintaining stable structures to ensure processes remain efficient and the need for flexibility, creativity and a willingness to take risk. Companies that master this balancing act are often in a better position to work efficiently and operate effectively and in a forward-looking way over the long term.

The important role of innovation units

Assigning innovation management to specialised units makes it possible to focus on effectiveness without a concomitant reduction in the efficiency of other departments. For example, many technology companies have set up stand-alone innovation departments that have accelerated the pace of development of new products and services without disrupting core production processes.

Efficiency and effectiveness do not stand in opposition to each other – they actually complement each other. Efficient processes ensure that resources are optimally utilised, while effective innovation processes guarantee that companies remain competitive and fit for the future. A successful company has both efficient and effective processes.

Innovation management as the key to success

Companies that are able to respond flexibly to change and develop innovative solutions will be successful over the long term. Establishing the structures for the innovation management units is one step in this direction.

Specialised innovation management units can focus on their relevant specialty area, be that IT innovation, business innovation or management innovation. This leads to more effective use of skills and resources, which in turn increases efficiency. As an example of this, a leading consultancy set up specialised innovation departments for different industries back in 2021, which led to an improvement in the quality of its services.

A strategy for long-term company success

The combination of efficient specialist departments and specialised innovation management units is key to a company’s long-term success. Companies can reduce costs, optimise processes and at the same time develop innovative solutions that allow them to remain competitive on a constantly changing marketplace.

Conclusion

Organisation management is essential to ensuring efficiency and effectiveness at a company. Assigning innovation management to specialised units enables them to achieve a healthy balance between efficiency and effectiveness. This approach ensures that companies are able to both optimise their existing processes and react flexibly to changes as a way of ensuring their long-term success. They need to be proactive in addressing the structure of their organisation in order to remain competitive in a dynamic business world.

What we have to offer

Efficiency and effectiveness in organisation management go beyond the theoretical realm. They are indeed key factors for the success of a company. If you are interested in improving the performance of your organisation and finding the right balance between efficiency and effectiveness, I recommend our IRO workshop focused on development.

This series of workshops is specifically designed to help organisations create the structures for an actionable roadmap. Our team of experienced experts is on hand to help you create customised and individual solutions for your organisation.

Contact us if you would like to find out more about the IRO series of workshops and our consultancy services. We are ready to work with you to chart a path to long-term efficiency and effectiveness in your organisation. We look forward to accompanying you on your journey to success.

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On our website you will find out how our organisational consultancy can effectively help companies make the right decisions to become even more successful.