According to McKinsey, over 70 percent of companies do not feel adequately prepared for the dynamics of their environment. At the same time, the pace of change continues to increase: artificial intelligence is changing business models, geopolitical tensions are endangering supply chains and the shortage of skilled workers is increasing pressure from within. Requirements arise faster than organizations can react. Change is no longer a state of emergency. He is the new normal.
Many companies still respond to this with the same means. Major transformation programs, comprehensive restructuring, long-term planning. But that’s exactly what falls short. These approaches are too cumbersome for a reality that is constantly shifting.
What counts today is the ability to continuously adapt. Fast, targeted and where changes occur. Not every few years, but continuously and as an integral part of daily activities.
But this is exactly where the challenge lies. Many companies lack perspective. They don’t know how their organization actually works, where bottlenecks arise or what effects changes have. And this means there is no basis for targeted, effective adaptation.
What exactly is needed
Continuous transformation is not decided by concepts, but by skills. Five requirements are crucial:
- A reliable database
Fragmented data prevents clear decisions. Only when HR, organizational and financial data are brought together and cleaned does a reliable picture emerge. - Transparency about structures
Daily updated organizational charts create clarity about responsibilities, leadership spans and dependencies. They make visible how the organization really works. - Insight into the workforce
Key figures and dashboards show developments and make risks visible at an early stage, for example in the case of succession, willingness to change or overload. - Understanding connections through Org Analytics
Only through Org Analytics do causes become visible. Why do bottlenecks arise? Where are structural weaknesses? Typical undesirable developments such as excessive leadership spans, a lack of successor or inefficient collaboration can be specifically identified and addressed. - The ability to simulate
Scenarios show what effects reorganizations have on costs, capacities or productivity. Decisions become robust instead of speculative.
Reorganization becomes routine
If these requirements are met, the way we deal with organization changes fundamentally. Reorganization becomes part of normal work. Adjustments are made where necessary. Precise, forward-looking and based on reliable data. This reduces risks and increases speed. Decisions can be made earlier and measures take effect more quickly. A complex topic becomes a controllable process. Companies develop the ability to continuously develop their organization and prepare it for the future. The following applies: those who organize effectively increase their organizational performance – or in scientific terms: those who have their organizational effectiveness under control reap and improve their organizational performance.
HR as a driver of organizational performance
This creates a central role for HR. Away from support and towards actively shaping the organization. With data-based analyzes and org analytics, HR can understand structures, evaluate developments and control them in a targeted manner. At the same time, HR enables managers to analyze their areas themselves, recognize developments early on and make well-founded decisions. This is exactly where real business partnering occurs. Continuous transformation is no longer a vision. The necessary methods and technologies are available. Organizations can continually adapt rather than waiting for large programs.
This creates security in change and opens up new perspectives. For companies that want to remain able to act. And for HR, which gains real influence on organizational performance and positions itself as a strategic partner for managers.
Anyone who understands their organization can change it.
And anyone who can change them will secure the future – of the company as well as the human resources function within the company.
Author
Joachim Rotzinger is CEO of Ingentis, the leading software provider for organizational analytics and strategic workforce planning. The focus of his work is on creating future-proof companies that fully leverage the potential of people and organizations.
