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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.

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.

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.

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.

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.

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.

This capability was introduced in Revision 16 as a new critical capability.

The following CCs cover topics that are related to ODP in some way:

BPBusiness Planning

Planned major initiatives to inform the IT function's organization structure

BPMBusiness Process Management

Insights on the organization's businessprocesses

ITGIT Leadership and Governance

Executing IT governance

ITGIT Leadership and Governance

Guidelines on decision structures, bodies, and escalation paths

PAMPeople Asset Management

Managing roles and career progression, and implementing incentives

PPMProgramme and Project Management

Managing project delivery

REMRelationship Management

Insights on interfaces between the IT function and other business units

SPStrategic Planning

Defining the IT strategy

SPStrategic Planning

The strategic context for designing and planning the organization structures of the IT function

SUMSupplier Management

Insights on interfaces to IT service suppliers