Can an algorithm improve the design of your organization?
I believe the answer is yes.
In fact, together with two colleagues (Kim Soldal and Tore Christiansen), I am developing a software tool for this purpose. It is called Re:config.
The goal is not to automate the entire organization design process – that is not realistic (nor desirable).
What we are developing is a decision support tool: A tool that can help practitioners (leaders, internal advisors, and external consultants) create more effective organizational models.
We have created a video that explains the basic concept (it lasts for about 3 minutes):
As the video explains, what Re:config does is to help group elements (roles, teams, or sub-units) in the best possible manner.
A grouping task is like this: Should role A be organized in the same team as role B? To answer this question, one needs to know what tasks A and B have, and their interdependencies (how they are related).
This becomes a hard task when the number of elements increases.
As an example, if you have 6 roles and need to allocate them to two sub-units, there are actually 41 different ways of doing this (!).
Which of the 41 options is the most effective one? An algorithm will find the answer faster than the human brain.
By making better decisions about grouping, you will reduce coordination costs: Less time will be used in meetings and on email to coordinate with others, and more time will be spent on the core tasks.
It will also enable you to create a more flexible and modular organization, one where each sub-unit has a clear and focused mandate, with responsibility for a complete deliverable (or a set of closely related tasks).
* * *
What we have now is a prototype. It works, but like all prototypes, it will need to be further developed and testet.
For this reason we are seeking 3-4 partners (industrial companies or consulting firms) that are interested in testing the tool in their organization.
So let me know if your firm might be interested in collaborating with us on this.
P.S. The main assumptions behind the tool are described in chapter 5 in the second edition of my book.
I think this is an interesting idea and agree that we cannot automate all, but some parts can be automated helping organizational reviews to be more effective. There so many discussions and variations when we design organizations – obviously we do not design from scratch as we have already people and certain sets of capabilities on board which affect decisions. I am working for one of the biggest UN humanitarian organizations and currently we are undergoing an important transformation in terms strategies in our Country Offices around the world. If we could automate some parts of analysis and maybe this could also help us to have some ideas for structural models, as well.
Filomena, thank for your comment. Feel free to contact me if you want to discuss testing the Re:config tool (you can use the Contact form on my blog).
Hello Nicolay. This new software tool sounds promising and I’m looking forward to hearing more about it. I’ve been thinking about the comment in the video on how important decisions are being made in a top down manner by leaders who don’t have the capacity to process large amounts of information. Yet, I find that practitioners inadvertently ask for a top down approach because “change comes from the top.” It seems to reinforce a cycle of dis-empowerment.
Do you envision this tool as a vehicle to increase employee investment or engagement with their employer? I realize that this wouldn’t be a specific outcome for the tool. However, I can see it as a feature of it.
PS….I hope you’ve had a good summer!
Hello Paul – yes the summer was very good…!
I think we need to combine top down and bottom up approaches. Obviously a re-design needs a mandate from the leader of the firm/unit, and the design criteria need to be aligned with the strategies. However, there is also a need for understanding how people work and try to align the formal structure with the work process interdependencies.
Yes, one advantage of the tool is that a lot of people can provide input into the process. I still believe there is a role for interviews and workshops, but with the tool, information from a larger number of people can be gathetered, faster and at lower cost.
Hello Nicolay,
congratulations, what an interesting approach! May I ask one question? Does Re:config gather input concerning solely the current status of roles, workflows etc. or can information relating to aspired future workflows be incorporated?
Best wishes from Berlin, Germany,
Marco
Hello Marco – that’s a good question! So far we have gathered input about the current interdependencies in the organization. But we have discussed this issue and believe that an alternative would be to ask people in the questionnaire (as an example): “Given our new strategy, who do you think you should collaborate more strongly with in the future?” By the way, according to plan I will visit Berlin in May 2019 and would be happy to meet if you want to explore this approach further.
Hi Nicolay
I think this sounds really interesting. I spend so much of my time as an OD practitioner working through processes and workflows. I usually base it on as-is processes or best practice if that isn’t available and then number crunch to the extent that I’m now looking at whether I need to do some training on Power BI.
My query is what do you use as a source data, how does the questionnaire work and what outputs do you get. I’d be really interested in understanding more about how this could work.
Thanks
Nicole
Did you have a look at ‘OrgCon’ the design software developed by Burton & Obel?
Hello Hans, yes we are familiar with OrgCon. It is a rule based systems so it is very different from Reconfig, which is data based and makes use of an algorithm to process the data. See this paper for details: http://tiny.cc/8gpsez Org Con and Reconfig might be complementary – Org Con might suggest the overall model and Reconfig can then be used to identify the more micro grouping of elements.
Hello Nicolay,
your tool sounds interesting. In a Project of mine (as an OD-Consultant) we face the Task to create a new organizational design.
I would be interested in understanding how Reconfig could assist us – and at what Costs.
Best wishes, Pia