The work of organization design benefits from a thoughtful, inclusive process where leaders can iterate and explore alternatives and align on a path forward. The reality is that tight deadlines, fear of broad involvement, and a too-narrow view of the problem to solve or potential solutions often threaten to derail good design decisions.
We see 10 common pitfalls to avoid or manage for effective project outcomes:
| Pitfalls | Consequence |
| 1. Inadequate assessment of the current state | • The problem to solve is unclear or wrong
• Solutions may not address root causes • Increased resistance to change – no case for change |
| 2. Executives not aligned on the problem to solve | • Key contact may not be the real client; spin and churn due to working at the wrong level or in the wrong place
• Project becomes HR or consultant work versus a leadership initiative • Implementation undermined |
| 3. Lack of design criteria | • Waste of time and resources developing options not centered on business growth needs or problems to solve
• Lack of clarity around how the new organization design will be better than the status quo |
| 4. Insufficient stakeholder engagement or input | • Design work moves fast at beginning, but implementation stalls due to lack of buy-in needed for change, increased resistance
• Team may miss key intelligence about barriers or critical success factors |
| 5. Structure solution only | • Changes do not stick as processes, metrics, and reward mechanisms still reinforce old ways of work
• Sub-optimized results as employees struggle to deliver on new expectations |
| 6. Redesigning functions in isolation | • Increase in unrewarded complexity and frustration in markets and business units as functions change without an overall enterprise framework to guide decisions
• Shadow functions in markets and business units • New conflicts around allocations, chargebacks, and decision rights |
| 7. Redesigning business units in isolation | • Duplication and inconsistencies in programs, processes, metrics or reporting
• Non-value-added time and resources spent on overlapping work at global, regional, and local levels • Missed connections, leverage, and learning across business units or markets |
| 8. Unclear design terminology | For example: Product, Customer, Product or Project Management, COE, Shared Service, Analytics
• Ambiguity hinders efficiency of the design process and creates friction • Inability to integrate data, compare across units • Duplication and/or gaps in roles and work across units, functions |
| 9. Moving too fast | • Failure to engage key stakeholders and consider different perspectives
• May side-step proper control and regulatory processes; vetoes pop up at the end of the design process |
| 10. Moving too slow | • Case for change is forgotten, becomes lost, or changes
• Change fatigue, and momentum is lost • Loss of competitive advantage and customers/clients |
The realities of business make some of these pitfalls unavoidable. Understanding the consequences and enabling informed trade-off decisions when they do arise is the work of the business leader and organization designer.
Rollin Burhans
Senior Consultant