How an organisation is structured effects its ability to perform because the Structure determines channels of communication, divisions of responsibility, segmentation of control and the limits of scope.
Structural change focuses on restructuring, reorganising, downsizing and outsourcing which reduces costs and hopefully improves performance.
However, because costs are reduced, using structure as the focus of a transformation project makes it is easy to calculate a Return on Investment for proposals.
This simplifies the decision for the Client and is Business as Usual for the consultancies.
This makes restructuring an obvious choice.
However, for most large organisations restructuring is also a regular occurrence.
Frequency of ‘restructures’ is increasing due to the accelerating rate of change in the market place which is decreasing the time over which any structural change remains effective.
Another way of looking at this is that structural redesign is based on projected mid and long-term strategy and the accelerating rate of change is reducing the period over which the future can be accurately predicted.
An out of date structure causes Behavioural Friction.
And the process of changing it creates Behavioural Friction in other areas especially Operational.
So an alternative to the expensive and disruptive process of frequent restructuring is desirable.
Viewing Structure as a source of Behavioural Friction provides alternative approaches.
For example: continuously adapting & evolving the structure to accommodate the changing demands of the external market place.
This requires structural Behavioural Frictions to be identified continuously and small steps taken to adjust the structure to remove them.
This gradual evolution keeps the structure closely aligned to the organisation's changing operational needs, optimising its performance.
This provides a continuous competitive advantage and removes the cost, and the disruption to internal and external performance, of the regular jolt of frequent restructuring.
By continuously reorienting the structure to make it easy for the organisation to fulfill its purpose, achieve its objectives and outperform the competition, it is energised.
People and systems operate in efficiently and effectively, sources of disengagement are removed and a hierarchy of operational effectiveness is established that is flexible and agile.
The structure is therefore always fit for purpose adapting to the changing market, delivering a strategic advantage.