Ospd Deepu

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    Submitted by

    Deepak Soni

    Submitted to

    Dr.Janaki Naik

    By Marcia W blenko

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    Consists of activities Task allocation

    Coordination

    Supervision

    Towards achievement of goals & objectives

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    MYTHS Organization structure is the key determinant

    of financial performance.

    Job of CEO is to put right person in right jobJob of army officer to put right troops in right

    place.

    Reorganization is important for cost cutting

    and to achieve growth.

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    Organizational structure is not the onlydeterminant of performance.

    A change in structure to gather more creative inputmay end up with too many peoples involved and

    thereby slowing the pace of decision making.

    Similarly it happened with YAHOO.

    In 2008 Bain & Company surveyed 760 companiesdecisions effectiveness

    Decision quality

    Speed

    Yield

    Effort

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    Then scored with firms financial performance. companies who got 71/100 were found with

    good decision execution throughout.

    Found there were still scope of improvementfor companies who scored 30%.

    Mainly it proved no relationship betweenstructure and performance can be

    established.

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    To stack up against the competition. when looking back on critical decisions we find we choose right

    course of action

    Q1) When looking back on critical decisions, we find that we choose

    the right course of action ( Q SCORE ) 1 never

    2 infrequently

    3 some of the time

    4 Most of the time

    Q1) We make critical decisions ( S SCORE )

    1 Much slower than competitors

    2 Somewhat slower than competitors

    3 Somewhat faster than competitors 4 Much faster than competitors

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    we execute decisions as intended ( Y SCORE )

    1 Never

    2 Infrequently

    3 Some of the time

    4 Most of the time

    Were off the charts

    We put in somewhat too much/nowhere near

    enough effort We put In somewhat too much/too little effort

    We put imn exactly the right amount of effort

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    1) 2) 3) 4)Strongly disagree Diagree more than agree Agree than disaagree Strongly agree

    Our structure help rather hinders the decisions most critical to our success

    Individuals understand their roles and accounatability in our most critical decisions

    Our process are designed to produce effective,timely decisions and action

    The people in critical decision roles have the information they need when and how theyneed

    People understand their priorities clearly enough to be able to make & executedecisions they face

    Our culture reinforces prompt, effective decisions and action throughout the org.

    >35 great , 31-35= good but need improvement, 26-30=structure is barrier, 10-25=

    major change is required.

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    Identify your organizations key decision

    Determine where in the organization thosedecisions should happen

    Organize the macrostructure around sources of

    value

    Figure out what level of authority decision makersneed

    Align other elements of the organizational system

    such as incentives, information flow, process Help managers to formulate skills and behavior to

    execute decisions.

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    In 2006 division faced seriousperformance crisis.

    Examined service, geographic, customersegment.

    Discovered profitability and growth variedwith customer segment

    1st segment used large amount ofgas/electricity with 2nd slight low and 3rd as

    lowest and inconsistent. On the basis of this problem recognized

    following decisions were proposed.

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    Established three business Premier energy - Energy first -pay as you go

    This structure directly affected customerssuch a service level, positioning, andproduct bundling

    Reduced customer attrition from about 20%to less than 10%Reduce in bed debtGained business growth

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    Adjusting to new structures that can be bothmacro or micro change.

    New structure = New boundaries

    That can make effective more difficult.

    So they should be interconnected.

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