March 2010 Developed by Agency Human Resource Services, DHRM 1

Organization Assessment

Example of an Organizational Design Review and Recommendations

March 2010 Developed by Agency Human Resource Services, DHRM 2

Purpose and Agenda

• Purpose for this discussion– Organization assessment

• Agenda– Business framework - understand business goals and

priorities– Identify business needs– Understand what we currently have– Summary of observations: (What are the possible gaps,

barriers, and constraints? What are their impacts on the organization?)

– General benchmarking– Possible proposals– Next steps

March 2010 Developed by Agency Human Resource Services, DHRM 3

Business Framework

• Organization Strategy– Superior Customer Service through Speed

and Cost Containment• Utilize current service delivery position and

extend customer service through process improvements and partnerships

• Achieve leading cost position through fastest technology

• Expand services offered • Fast business processes and high flexibility to

react quickly to new opportunities

+

March 2010 Developed by Agency Human Resource Services, DHRM 4

Business Framework

• Actions to achieve highest customer satisfaction rating – Drive service diversification

• Realize new potential in target customer base• Diversify service channels

– Sustain competitive cost position• Achieve 95% accuracy in transactions• Faster learning cycles• Build world class service automation

– Don’t waste money

March 2010 Developed by Agency Human Resource Services, DHRM 5

Business Needs

• To achieve these business goals and priorities, we need:– Effective and efficient communication– Speed– Flexibility– Excellent execution– Financial accountability– Creativity and courage to try new ways– Consistent positive results

March 2010 Developed by Agency Human Resource Services, DHRM 6

Current Situation

• What do we know about our organization?– Where are the business challenges?– Are we meeting the business goals or are we

on a path to meet them?– Do we meet our customer service goals and

timelines? How do we know?• Organizational Map*

– Observations– Does our organization’s structure support our

identified needs?

*An organizational map was created on large poster boards with movable pieces to reflect the current total organizational structure. This map was reviewed in detail with leadership and allowed for exploration of options by arranging the pieces (roles) into different structures.

March 2010 Developed by Agency Human Resource Services, DHRM 7

Gaps, Barriers, and Constraints

Gap/Barrier/Constraint Possible ImpactOperate in silos Work for benefit of own department

measures and do not necessarily focus on other areas or overall performance – self-interest

Conflict between groups – e.g., Logistics and Service, IT and Service, Dept vs. Dept

Challenges in efficient and effective execution; resources not shared effectively; increased OT/double time

Repetition of embedded jobs – e.g., IT Dept and IT jobs embedded within departments

Possible increased costs and reduced efficiency

Hierarchy Communication gaps, slow processes – may create an opportunity cost

Lack of differentiation between levels in job families

Increased costs – not getting the “bang for the buck”

Lack of focus in roles – e.g., Manager or Project Manager?

Unrealistic expectations, unclear direction, missing leadership

Cross-functional functions buried in other groups and often lack visibility

Weaker focus on overall organization performance

March 2010 Developed by Agency Human Resource Services, DHRM 8

Some Data and Information

Management Employees as Percent of Employee Headcount

Span of Control Industry Comparisons

Our Organization

Executive Leadership TeamAverage

3.5% .08%

Department/Program DirectorsAverage

6.1% .48%

ManagersAverage 12.0% 2.7%

SupervisorsAverage 2.4% 5.2%

March 2010 Developed by Agency Human Resource Services, DHRM 9

Proposals – Separate Customer Service and Support Functions

Site Director

Executive Director

Executive Director

IT Staff Manager

FinancialServices

Staff Manager

Admin Services

Staff Manager

Customer Services

Staff Manager

CustomerServices

Staff Manager

Admin Services

Staff Manager

Advantages:•Centralized customer service focus – flexibility, communication, goal focus•Centralized customer service support services – improved visibility•More focus at Staff Mgr level

Possible Disadvantages:•Communication barriers (among support functions and between two admin services groups•Span of control

March 2010 Developed by Agency Human Resource Services, DHRM 10

Proposals – by Function and Office

Site Director

Executive Director

Executive Director

IT Staff Mgr

AdminServices

Mgr (Office 1)

AdminServices

Mgr (Office 2)

FinancialServicesStaff Mgr (Office 1)

FinancialServicesStaff Mgr (Office 2)

CustomerService

Staff Mgr

CustomerServices Staff Mgr

Advantages:•Clearer functional focus – improved communication and goal focus•Site vs. dept focus•Integration of admin services groups - flexibility•Integration of financial services groups – flexibility•Centralized IT services – improved visibility

Possible Disadvantages:•Communication barriers (admin services and financial services)

March 2010 Developed by Agency Human Resource Services, DHRM 11

Proposals – by Function

Site Director

Executive Director

Executive Director

CustomerService

Staff Mgr

AdminServices Staff Mgr (Office 1)

FinancialServices

Staff Mgr (Office 1)

IT Staff Mgr

FinancialServices

Staff Mgr (Office 2)

AdminServices

Staff Mgr (Office 2)

Advantages:Clearer functional focus – improved internal communication and goal focusSite vs. dept focusIntegration of financial services and IT support - flexibilityIntegration of admin services groups – flexibility

Possible Disadvantages:•Communication barriers (admin services and financial and IT services)

March 2010 Developed by Agency Human Resource Services, DHRM 12

Other Ideas• Create a group of project managers for each office to remove

this activity from the Manager and Supervisor – Allows the Manager and Supervisor to focus on effective

management of their areas and provide input/information for projects

– The project managers provide the coordination and legwork to effectively pursue large scale projects

• Look at supervision spans of control in Office 2 and in smaller groups– Opportunity to combine groups including cross-training– Necessary to have leads and supervisors in all groups?

• Create central focus for IT type positions (embedded positions)– Within IT or other centralized area– May create improved efficiency across these positions

• Review differentiation of levels within job families– Determine if differentiation exists– Assess needs at each level – how many senior, middle, and lower

levels do we need in each job family?

March 2010 Developed by Agency Human Resource Services, DHRM 13

Next Steps?

• Feedback from Leadership• Incorporate feedback into HR priorities• Others?

• Our offer– Provide additional information on further

organization assessment– Provide consultation for reviewing and discussing

options– Provide and guide execution of any future changes