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Organizational design sprints accelerate rapid, focused changes by prototyping and testing new structures, fostering agility within teams. Operating model redesign involves comprehensive overhaul of processes, technologies, and governance to align with strategic goals for long-term transformation. Discover how each approach can optimize your business's operational performance.
Why it is important
Understanding the difference between Org Design Sprints and Operating Model Redesign is crucial for effective organizational transformation. Org Design Sprints focus on rapid prototyping and testing new organizational structures to address immediate challenges or opportunities. Operating Model Redesign involves a comprehensive overhaul of an organization's core processes, systems, and capabilities aligned with strategic goals. Knowing this distinction ensures that consultants apply the right approach to optimize performance and achieve sustainable growth.
Comparison Table
| Aspect | Org Design Sprints | Operating Model Redesign |
|---|---|---|
| Purpose | Rapid prototyping of organizational structures | Comprehensive overhaul of operating processes and systems |
| Duration | 1-4 weeks | 3-6 months or longer |
| Focus | Alignment of roles and team structures | End-to-end business process and technology integration |
| Outcome | Validated organizational design prototypes | Implemented operating model with improved efficiency |
| Stakeholders | Cross-functional teams, HR, leadership | Executive sponsors, operations, IT, HR |
| Methodology | Agile workshops, rapid iteration, prototyping | Process mapping, system analysis, change management |
| Risk Level | Low to medium | Medium to high |
| Cost | Lower investment | Higher investment |
Which is better?
Org design sprints focus on rapid, iterative development of organizational structure, promoting agility and quick adaptation to change. Operating model redesign delivers a comprehensive overhaul of workflows, processes, and governance to align with long-term strategic goals and improve overall efficiency. Choosing between the two depends on whether a business prioritizes short-term flexibility or a deep, system-wide transformation for sustainable growth.
Connection
Org design sprints accelerate the iterative development of organizational structures by rapidly testing and refining operating model components. Operating model redesign provides the strategic framework, defining how processes, technology, and people align to execute business strategy effectively. Together, they enable agile transformation by aligning organizational capabilities with evolving market demands and corporate goals.
Key Terms
Value Chains (Operating model redesign)
Operating model redesign centers on optimizing value chains to enhance efficiency, agility, and customer value by aligning processes, technology, and organizational capabilities. Org design sprints specialize in rapid, iterative changes targeting specific organizational structures to address immediate challenges and improve team collaboration. Explore these methodologies in depth to determine which approach best drives transformative business outcomes.
Rapid Prototyping (Org design sprints)
Operating model redesign involves comprehensive restructuring of processes, governance, and capabilities to align with strategic goals, while org design sprints prioritize rapid prototyping to quickly iterate and test organizational changes in a time-boxed manner. Org design sprints enable faster feedback loops and agile adjustments by focusing on specific elements such as team structures, roles, and workflows within condensed cycles. Explore the benefits of org design sprints for accelerating transformation and maximizing adaptability in complex organizational environments.
Governance Structures
Operating model redesign emphasizes comprehensive changes to governance structures to align decision-making frameworks with strategic objectives, ensuring clarity in roles, accountabilities, and control mechanisms. Org design sprints focus on rapid, iterative adjustments to team configurations and governance processes to enhance agility and responsiveness within existing organizational parameters. Explore deeper insights into optimizing governance structures through these approaches.
Source and External Links
Operating Model Redesign - Wilson Perumal & Company - A redesigned operating model is a critical link between strategy and execution, defining who does what, where, and how decisions and assets are deployed, with no one-size-fits-all blueprint but a proven three-phase design approach to unlock value and growth.
A new operating model for a new world - McKinsey - Updating the operating model involves committing to specific performance outcomes through changes in structure, processes, culture, and talent development, often requiring a shift to agile enterprise models to close the gap between strategy and execution and achieve ambitious growth and innovation goals.
Designing an Operating Model for Changing Market Needs - Deloitte - An operating model must adapt continuously to changing market dynamics and business strategies by integrating fragmented initiatives across the enterprise, using technology and automation, and designing for adaptability rather than periodic redesigns to meet accelerating pace of change.