1 Organizational Development Framework

2 Evaluate your Organization & Build a Development Roadmap

3 Common Development Services
Contributors: KyNam Doan, Nguyen Thuy Anh, Phan Tra My
Latest updated day: 22 April 2017

MANAGE YOUR BUSINESS WITH A STRUCTURED APPROACH

© 2017 Structured Business Group, LLC
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 1. ORGANIZATIONAL DEVELOPMENT FRAMEWORK
• Organizational Stages of Growth
• Management & Functional Systems
• Management Systems Development Path
• Functional Systems Development Path

2. EVALUATE YOUR ORGANIZATION &

CONTENTS BUILD A DEVELOPMENT ROADMAP

• Organizational Effectiveness Evaluation
• Capability Evaluation
• Roadmap – Gap Analysis

3. COMMON DEVELOPMENT SERVICES

• Performance Management System (KPIs)
• Corporate Governance
• Organizational Re-Structuring
• Department Re-Structuring
• As-Is Business Process Development
 1
O R G A N I Z AT I O N A L
DEVELOPMENT
FRAMEWORK
Organizational Stages of Growth
Organizations can be
categorized into 6 levels 5-Year Goal
of growth – G0 to G5

You can plot where your

organization currently sits
and you intend to go in the
G0 G1 G2
Your Organization
G3 G4 G5
next 5 years.

Maturity

Locally
New Venture Expansion Mature Re-innovation Internationalization
Established

Years 0-2 3-5 6-10 10-20 >15 >20

Employees 2-20 20-50 51-1000 500-2000 >1000 >2000

Revenue ($)
<1mio 1-10 mio 10-100 mio 100-300 mio >300 mio >500 mio
Manufacturing/Construction
Revenue ($) <200k 200k-2m 2m-75m >75m >100m >150m
Service/F&B/Retail

Examples

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MANAGEMENT
SYSTEMS Product/Service Development

Performance Management System Marketing and Sales

Planning
Decomposition of Logistics of Products & Services
Financial Management
your Organization
Project Management
Customer Management
into Management &
Legal & Risk Control
Functional Human Resource

Organizational Structure
Systems Information Technology
Management Information System

Manage External Relationship
Total Quality Management
Leadership
Change capability
Your organization is naturally broken into the Accounting
work you do (functions) and how you manage
them.
Purchasing
Next we’ll look at Management and
Functional Systems separately. External Project Management

Vision Strategy FUNCTIONAL

SYSTEMS
(Departments)
5
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Management Systems Development Path
Management systems can also be 0 1 2 3 4 5
categorized into 6 levels of maturity None Basic Capable Integrated Optimized Strategic
(Just like Organizational Maturity):

This table illustrates the maturity Organizational Growth G0 G1 G2 G3 G4 G5

level of management systems Stage New Locally Growth Mature Re- Internation
corresponding a company’s Management System Venture Established innovation alization
growth stage.
Leadership Team 1 2 4 5 5 5
For Example, an organization
Vision, Strategy & Planning 1 3 4 5 5 5
seeking to grow effectively (Growth
stage 2) should focus on developing Organizational Structure 2 4 5 5 5
an integrated (3) Performance
Management System, Business Business Intelligence 2 3 4 5 5
Process Management System and
optimizing (4) their Organizational Performance Management 2 3 4 5 5
Structure and Finance Management
and Control System. Risk & Compliance 1 2 4 5 5
Corporate Governance 1 2 4 5 5
Quality Management 1 3 4 5 5
Business Process Management 1 3 4 5 5

Finance Management & Control 1 3 4 5 5 5

External Relationship Management 2 3 4 5 5
Internal Project Management (Change
2 3 4 5 5
Management)

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Functional Systems Development Path
Functional systems can also be
0 1 2 3 4 5
categorized into 6 levels of maturity
(Just like Organizational Maturity): None Basic Capable Integrated Optimized Strategic

This table illustrates the maturity Organizational Growth G0 G1 G2 G3 G4 G5

level of functional systems in Stage New Locally Growth Mature Re- Internatio
corresponding to an company’s Functional System Venture Established innovation nalization
growth stages.
Product/Service Development 2 3 4 5 5 5
For Example, an organization
seeking to grow effectively (Growth Marketing and Sales 2 3 4 5 5 5
stage 2) should focus on integrating
(3) their Human Resource and IT Logistics of Products & Services 1 2 3 4 5 5
Departments while optimizing (4)
Marketing & Sales as well as Customer Management 1 3 4 5 5
Accounting.
Human Resource 1 2 3 4 5 5

Information Technology 1 3 4 5 5

Accounting 1 2 4 5 5 5

Purchasing 1 3 4 5 5

External Project Management 2 3 4 5 5 5

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 2
E VA L U AT E Y O U R
O R G A N I Z AT I O N &
BUILD A DEVELOPMENT
ROADMAP
Organizational Effectiveness Evaluation
Little or none Excellent

We use two types of

organizational effectiveness
evaluations – one borrowed
from Bain and the other from
Wes Wertz. These two have
been proven to be very quick,
but effective techniques to
identify strengths and
weaknesses.
An effective organization is
one that is effective in
translating objectives into
results.
Criteria 1 2 3 4 5
Is the organization clear about the top 5 priorities for making our
1
business more valuable?
2 Is our leadership team cohesive and aligned?
Are individual roles, accountabilities and authority clear for the
3
most important decisions?
Does the organization’s structure reflect the sources of value in
4
the business? Support the business objectives and capabilities?
Do we have enough high performing people, in the jobs where
5
they can have the most impact?
Do we measure what matters—and link incentives for our people
6
to those measures?
Does our front line consistently execute well on the activities that
7
are critical to success?
Does our back office support contribute value commensurate with
8
its cost?

9 Do we have a high performance culture?

10 Do we have the capacity to change?

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Systems Capability Evaluations

We evaluate the capabilities

of your management and
operational systems using Sample Dashboard Capability Evaluation of 13 systems
four (4) criteria: ID Functional Group Value Weight w.Score Score Developed Implemented Communicated Adopted
1 Develop Vision and Strategy 3 5% 2.2 2.1 3.0 1.7 2.0 1.7
Development: How well
2 Develop and Manage Products and Services 5 9% 3.6 2.0 2.0 2.0 2.0 2.0
developed is it?
3 Market and Sell Products and Services 3 5% 2.9 2.7 3.4 2.4 2.6 2.4
Implemented: How well 4 Deliver Physical Products 5 9% 4.8 2.7 3.5 2.0 2.8 2.5
documented is it? What type of 5 Deliver Services 5 9% 3.6 2.0 2.0 2.0 2.0 2.0
system is used? 6 Manage Customer Service 4 7% 3.0 2.1 2.4 2.0 2.0 2.0
Communication: Do your 7 Develop and Manage Human Capital 5 9% 2.4 1.3 1.4 1.2 1.3 1.3
employees know about it? 8 Manage Information Technology (IT) 5 9% 3.2 1.8 2.0 1.3Each category2.1is 1.7
evaluated on four
Where to find and use it? 9 Manage Financial Resources 3 5% 2.9 2.7 3.3 2.0 criteria from2.9 2.7
10 Acquire, Construct, and Manage Assets 3 5% 3.2 3.0 3.0 3.0 3.0to
1 (Little to None) 3.0
Adoption: Do your employees 5 (Excellent)
know how to use it? Do they Manage Enterprise Risk, Compliance, 1.5 1.0 1.0 1.5
use it? 11 Remediation, and Resiliency 5 9% 2.2 1.3
12 Manage External Relationships 5 9% 3.9 2.2 3.0 1.2 2.4 2.2
13 Develop and Manage Business Capabilities 5 9% 3.1 1.7 1.9 1.7 1.7 1.6
Business Structure Rating 100% 41.0 2.1 2.5 1.8 2.1 2.0

We’ve adapted APQC’s process frameworks to form the core of our systems capability evaluations
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Systems Capability Evaluations

Sample Dashboard Capability Evaluation of an HR system

We evaluate the capabilities
of your management and
operational systems using ID Name Developed Implemented Communicated Adopted
four (4) criteria: 7.0 Develop and Manage Human Capital 1.4 1.2 1.3 1.3
7.1 Develop and manage human resources planning, policies & strategies 2 2 2 2
Development: How well 7.2 Recruit, source, and select employees 2 2 2 2
developed is it? 7.3 Develop and counsel employees 1 1 1 1
Implemented: How well 7.4 Manage employee relations 1 1 1 1
documented is it? What type of 7.5 Reward and retain employees 1 1 1 1
system is used? 7.6 Redeploy and retire employees 1 1 1 1
Communication: Do your 7.7 Manage employee information and analytics 1 1 1 1
employees know about it? 7.8 Manage employee communication 2 1 1 1
Where to find and use it?
Adoption: Do your employees Each category is
know how to use it? Do they evaluated on four
use it? criteria from
1 (Little to None) to
5 (Excellent)

We’ve adapted APQC’s process frameworks to form the core of our systems capability evaluations
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Building a Development Roadmap
We will evaluate your current state of
management and functional systems, compare
them to what you are desired to achieve to
define which areas you should focus on.
A Road Map is then published to present the
priority and sequences of actions should be
taken to close this gap. A roadmap is
developed for the organization and for each
system individually

01 02 03 04 05 06
Develop Define Conduct Prioritize Discover Develop and
• Develop a clear and • Define the desired • Conduct a Gap • Prioritize the findings • Discover the optimum Publish
unambiguous end state Analysis exercise from the Gap Analysis sequence of actions • Develop and Publish
understanding of the exercise into the Road Map
current state strategies

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 3
CORE
DEVELOPMENT
SERVICES
Performance Management System (KPIs)

• System that facilitates the attainment of organization We will evaluate your current Performance
and its individuals’ goals Management System and propose solutions to
• Enable tracking and monitoring the performance of ensure the system:
employees, departments and organization itself
• There must be an alignment in the objectives of the
Is fair, consistent, and reliable
organization, each department, the
Manager/Supervisor, and the staff.
Uses established performance measures

Perspectives/Key Success Areas Communicates performance expectations

regularly
Promotes continuous employee
Goals, Objectives & Metrics development

Increases employee performance

PMS Management Software Can be used for succession planning,
compensation, rewards, and recognition

360-degree Feedback Processes

Quarterly & Annual Feedback

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Corporate Governance

• A method of governing the company, to

protect business transparency and promote
shareholder trust
• Includes:
• Control and compliance
• Financial control
• Legal control
• Risk control & mitigation
• Quality control

We will evaluate your current

Corporate Governance and propose
solutions to ensure its:

Fairness
Accountability
Responsibility
Transparency

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Organizational Re-Structuring
The following elements can be
designed/defined to support your
organizational strategies and objectives:
• Grouping – Group your
divisions/departments/and teams by
different characteristics to better control
that specific area
• Integrations – These are the structures
that tie your groups together and have a
high degree of influence on
organizational objectives
• Primary Authority
• Secondary Authority
• Control Authority
• Support Structure
• Communication Structure
• Collaboration Structure
Typical Organizational Strategies: We will evaluate your current
Organizational Structure and propose
• Verticalization – Tall to flat. This
describes the length of command solutions to ensure it is well designed
chains and degree of control. Tall to support your organizational
organizations move slower, but strategies and objectives
guarantee higher levels of quality.
• Formalization – Formal to informal.
This describes how strictly rules are
defined, implemented, and audited.
• Departmentalization – Define the
rigidity of departmentalization to
control information, authority
• Centralization – Define decision
centralization to control capability to
change quickly
• Specialization – Team members are
expected to fully specialize or
generalize within a department
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Department Re-Structuring
Sample of
deliverables
We will evaluate the capabilities
and competencies of your
managers/supervisors based on:

• Leadership Quality
• Skill Capability
• Change/Improvement Orientation
• Performance Orientation
• Teamwork Attitude

From the capabilities and

competencies evaluation and based
on department’s responsibilities, we
will recommend re-organization
within your company:

• Replace
• Recruit
• Move
• Keep the same

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 Business Process Development
The six phases of BPM maturity:
Sophisticated

0 1 2 3 Compare
alternatives
driven by
various
Re-align
process
with market
strategy
4 Create a
business
Goal-driven
processes 5Innovate new
businesses,
optimization performance products and
techniques framework that services
in real time Craft
process dynamically links through an
Identify the valuation of agile
Maturity process automation
Direct link the business to business
Model and owners and process and control
across the process structure
analyze governance model and execution
business structure rules to enterprise,
processes execution customers
and trading
Establish partners
Measure and process Integrate
monitor performance activity based
business metrics accounting
activities with process
steps

Immature Intra-process
Acknowledge Inter-process Enterprise Agile Business
Operation Process Aware Automation and Automation and Valuation Control Structure
Inefficiencies Control Control

Source: Gartner
Most Companies Fall Back to
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Business Process Development (cont.)
The level of development and Sample of process flow, process document and form
documentation of processes are
crucial factors in evaluating the
capability of a management and
functional system.

Based on your current business, we

will help you to develop and complete
business process which can be
applied immediately, including:

• Detailed flow
• Full document set of standard
policies, processes, procedures and
forms
• Measurement metrics for each of the
process

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Our clients & partners
Retail | Services | Production | Real Estates |Food & Beverage and More

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 MANAGE YOUR BUSINESS
WITH A STRUCTURED APPROACH

Contact us directly to get your business evaluated at This document belongs to thestructured.com
inquire@thestructured.com or contact one of the contributors
Inquiries, information, contact: inquire@thestructured.com
directly.
Contributors:
KyNam Doan
Managing Partner
kynam@thestructured.com

Thuy Anh Nguyen

Business Analyst
thuyanh@thestructured.com

My Phan
Business Analyst
my@thestructured.com

SBG Ho Chi Minh City Office

AB Tower, Floor 20
76A Le Lai
District 1, HCMC, Vietnam

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