Leland SandlerExecutive Advisor- The Sandler Group

Organizational Design at Amylin: Organizational Design at Amylin:

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Overview: Organizational Design

Aligning a set of choices and/or systems (see next page) to deliver our Long Term Goals>Designing and creating an organization to support and

optimize Amylin’s strategy–Structure–Dependencies, Interdependencies, Independence–Workflow Processes–Agreements (Decision Making, Communication, etc)

The alignment of our organizational choices has more impact on our success than a handful of “best-in-class” but misaligned choices (which is often what we are doing today)

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Aligned Organization Choices

Organizing SystemsMacro StructureStrategy &

Guidance

Strategy/ Value Offering

Mission

Vision

Design Principles/

Criteria

Impact of Work

Organizing Rationale

Business Model

Linkages

Structure Governance, Information &

Communication

Work Compensation & Rewards

Continuous Improvement

People

Environm

ent

Strategy &

Results

Leadership Needs

CULTURE

A

A

B C D

From: Kreig Smith of AlignOrg Solutions

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Overview: Key Organization Design Concepts

>Effective organization design should be informed by– root cause analysis of organizational shortcomings– analysis of current vs. desired results and the needs of key stakeholders

>Organization design should start from the outside (desired results, the market place and the environment) and work in

> “No silver bullet”: all organization structures have upsides and downsides…there are ALWAYS trade-offs to any design– The key is to anticipate and work to mitigate the downsides

> “All work is not created equal”: organize and resource work in ways that best deliver (optimize) the organization's strategy and value offering

>Culture is a cause and a result of design choices; because it is both a cause and an effect, culture changes when choices change

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Activity #1: Initial Analysis

List of your current organizational shortcomings>Your team>Teams you have interdependencies with

Analysis of current vs. desired results

List of the needs of key stakeholders

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Activity #2: Foundation Value Offering and Strategy Questions

>Who are our target customers? >Who are our key stakeholders: internal and external? >What is our compelling value offering? – Why do others (your customers) believe you provide value? – How well is the value offering understood?

>What activities will give you a sustainable, differentiated advantage?

>Trade-Offs (what you will do and what you will NOT do): – Describe the customer’s not targeted; the value/products not offered and

the distribution channel not used. – Things you will stop doing

>What are our key strategic goals and objectives? >How will we know if we are winning?

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Design Criteria

Design Criteria are statements about what is considered optimal from a design and strategic perspective. They provide specific guidance about what the design should and should not be>Response to key root cause analysis of organizational

shortcomings; and to delta between desired and current results>Translating Stakeholder requirements and Value Offering into

specific criteria for design>They are the “must/will” or “must not/will not” >They include non-negotiables>Examples– Design must ensure there is a single point of contact– Decisions will be made by those with the proper skills who are closest to

the customer and/or work– No employee will even be more than 4 levels from the Function Head

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Examples of Design Criteria

Design Criteria>Drive end to end Excellence through all our processes>Have a clear point of accountability for all decisions and projects>Need to align with other functions (specify function(s)) activities >Allows us to move resources quickly across projects>Builds depth of experience in (specific) area

Non-negotiables>Drive savings of 10%>Keep headcount adds to 5%>Must utilize “X” system and/or “Y” process>Must be completed by Jan-2008>Must limit function head direct reports to no more than 5

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Activity #3: Design Criteria Questions

>How can we turn specific stakeholder requirements into design criteria?

>What do we want to make sure happens/does not happen with this design (based on your initial analysis of our organization)?

>What criteria will help us choose among trade-off decisions?>Are there any non-negotiables? Who else should we ask?

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Activity #4: Key Work Activities

What are the key work activities we do within our function?>Start with a list (brainstorm)>Then place them in one of the four categories on the next

slide>Finally label each as either–UNIQUE (only your function does this work and you do it your

way)–STANDARDIZED (you have to do it in a specified way)–SHARED (Someone else does it as well, or does it for you)

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Activity #5: Strategic Categorization of Key Activities

Competitive Activities

(Greatest Return)

Competitive Enabling Activities

Necessary Activities

Compliance(No Return)

Does this work directly make our strategy happen?

Does it directly impact the value offering(s)?

Will it create sustainable differentiation?

If we were forced to give up control of work, would this be the last thing we would give up?

Are the outputs of this process used by or consumed by competitive work?

Does it enable Competitive work?

Does the corporation consider this an enable because of it’s values/beliefs?

Is it essential to the business, but not to gaining market share?

Is it only a potential disadvantage?

Could we afford to be at par with our competitors?

Do we do this because we don’t want to go to jail or get fined?

If allowed, would we stop doing work?

Effectiveness Efficiency

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Principles at the Actual Meetings w/ EC Members: Structuring and Placement Principles

The grouping, location and resourcing of work should be driven by the greatest results (competitive) and cost impact. >The organization should be structured around its competitive work

(see Activity #5)>The grouping and locating of processes/work should support the

strategy and value offering(s)>Competitive enabling work (Activity #5) should be grouped with the

competitive work it supports>Avoid structuring necessary and compliance work with competitive

and competitive enabling work because they drive out competitive and competitive enabling work

>Use technology to neutralize tradeoffs in limited resources and capabilities

>Competitive work activities should never be outsourced >Next steps would be to discuss “linkages” between functions.

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Resources and Links

> The Sandler Group: sandlergroup.net/

> Leland Sandler Website: lelandsandler.com

> LinkedIn: https://www.linkedin.com/in/lelandsandler

> Crunchbase: https://www.crunchbase.com/person/leland-sandler

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> Expertfile: http://expertfile.com/experts/leland.sandler

> YouTube: https://www.youtube.com/channel/UC4pT3Ne6_jxSAKrWC2iQzWQ

> My Presentations: http://www.slideshare.net/lsandler91/presentations