Organization Design and Planning
The Organization Design and Planning (ODP) capability is the ability to manage the IT function's internal structure and its interfaces with other business units, suppliers, and business partners.
Structure
ODP is made up of the following Categories and CBBs. Maturity and Planning are described at both the CC and the CBB level.
- AOrganization Design
Determine the internal structure of the IT function and its interfaces with the rest of the business, key suppliers, and business partners.
- A1Internal Structure
Define the internal structure of the IT function so that it supports the organization's strategic direction and culture. The definition includes, for example, reporting lines, roles, responsibilities, accountabilities, and span of control (that is, the number of employees reporting to each manager).
- A2Business Interfaces
Manage the interfaces between the IT function and other business units.
- A3Supplier Interfaces
Manage the interfaces between the IT function and its suppliers.
- BOrganization Planning
Ensure that the organization design is effective, with strong stakeholder buy-in.
- B1Planning Process
Manage the organizational planning process for the IT function and the outcomes of that process, for example by involving stakeholders, and securing commitment to change.
- B2Documentation and Communication
Document the IT function's organization design (including, for example, an organization chart showing links between units and interfaces), and communicate it to relevant stakeholders.
- B3Monitoring
Monitor the effectiveness of the IT function's organization design.
Overview
Goal
The Organization Design and Planning (ODP) capability aims to organize the IT function by establishing lines of authority, defining roles and functions, and specifying their interrelationships, so that IT employees can collectively deliver the objectives of the IT function.
Objectives
An effective Organization Design and Planning (ODP) capability aims to:
- Promote effective decision-making and follow-on action by removing organizational bureaucracy and structural inefficiencies.
- Ensure that the organization design of the IT function is appropriate to the wider organization it serves.
- Promote IT employees' acceptance of organizational change.
- Clarify reporting lines, roles, responsibilities, and accountabilities.
- Organize the IT function so that it can develop and leverage core IT capabilities.
Value
The Organization Design and Planning (ODP) capability enables the IT function to readily adapt its organization structure in response to business needs, strategic leadership goals, and the operating environment.
Relevance
Organization design and planning involves structuring the IT function in such a way that it is aligned with and responsive to all other functions, processes, and strategies within the business. When looking at organization design and planning, the context within which the business operates must be taken into consideration. If this capability is weak, the IT function needs to be continually restructured, which can be inefficient, confusing, and demoralizing for its employees. If the capability is well developed, it can enhance coordination, accountability, decision-making, and responsiveness, and enable work activities to be conducted efficiently in support of the IT function's strategy and objectives. The IT function's internal structures should be sufficiently flexible to allow it to deal with business challenges and goals as they arise1.
By establishing an effective Organization Design and Planning (ODP) capability, an organization can structure and organize its IT function to effectively support its goals and objectives. The IT function is able to adapt (using comprehensive change management processes), and can proactively respond to changes in the business strategy or operating environment, easily integrate new organizational elements, incentivize organization-wide collaboration, and promote operational efficiency and flexibility.
Scope
Definition
The Organization Design and Planning (ODP) capability is the ability to manage the IT function's internal structure and its interfaces with other business units, suppliers, and business partners.
Improvement Planning
Practices-Outcomes-Metrics (POM)
Representative POMs are described for ODP at each level of maturity.
- 2Basic
- Practices
- Decide on a standard organization structure for the IT function.
- Make sure that hierarchical levels and sizing reflect current business needs and take predictions of expected changes into account.
- Outcome
- An appropriate organization structure and sizing will lead to greater efficiencies in key areas.
- Metric
- Yes/no indicator on whether or not there is a standard organization structure for the IT function.
- Practice
- Introduce a formal process to identify and design interfaces between the IT function and other business units and suppliers.
- Outcome
- Key interfaces between the IT function and the rest of the organization and its suppliers are in place, facilitating improved coordination and collaboration.
- Metrics
- Number of business interfaces formally designed.
- Number of supplier interfaces formally designed.
- Practice
- Define roles, responsibilities, accountabilities, and related KPIs for all sub- units of the IT function.
- Outcome
- There is improved understanding and transparency with respect to the roles, responsibilities, accountabilities, and KPIs for all sub-units of the IT function.
- Metric
- Number of line functions that have written role descriptions, including responsibilities, accountabilities and KPIs, as a percentage of all line functions.
- Practice
- Ensure that major organizational changes are proactively communicated to employees.
- Outcome
- Employees are well informed about all major organizational changes, enhancing their sense of ownership and buy-in to those changes.
- Metric
- Frequency of communications regarding major organizational changes.
- 3Intermediate
- Practice
- Introduce standardized organization design and planning processes for the IT function, with clear allocation of responsibilities.
- Outcome
- Clear processes and responsibilities help to secure stakeholders' commitment to change.
- Metric
- Yes/No indicator regarding the presence of standardized organization design and planning processes.
- Practice
- Ensure that KPIs for measuring the IT function's organization design effectiveness are defined and regularly monitored.
- Outcome
- The effectiveness of the IT function's organization design is validated, allowing adjustments to be made if necessary.
- Metric
- Frequency of KPI reporting.
- 4Advanced
- Practice
- Formalize a range of pre-approved organization structures (ranging from industrialized IT to innovation centres), that the IT function is able to adopt to address business needs.
- Outcome
- The availability of alternative organization structures allows the IT function to respond more flexibly to business needs.
- Metrics
- Number of different organization structures pre-approved for adoption within the IT function.
- Effectiveness with which different organization structures coexist.
- Practice
- Ensure that IT line managers work with peers in other business units to define shared objectives.
- Outcome
- Greater organizational relationships/partnerships are fostered between the IT function and the rest of the organization through shared objectives.
- Metric
- Percentage of common objectives shared between the IT function and other business units.
- 5Optimized
- Practice
- Continually review the effectiveness of roles, responsibilities, accountabilities, and KPIs across the IT function.
- Outcome
- Employee behaviour is continually aligned with the IT function's organization structure.
- Metric
- Frequency of reviews (and updates as appropriate).
- Practice
- Continually review interfaces to ensure that the IT function adapts to changes in the business and operating environment.
- Outcome
- The IT function is flexible and responsive to changing needs.
- Metrics
- Percentage of business interfaces redesigned to adapt to business environment changes.
- Percentage of supplier interfaces redesigned to adapt to business environment changes.
- Survey results on stakeholder satisfaction with business interfaces.
Reference
History
This capability was introduced in Revision 16 as a new critical capability.