People and organization strategy

When an organization doesn’t meet its stakeholders’ needs and expectations, the cause may not be a misguided strategy or vision.

Instead, underperformance is often the result of a misalignment of the company’s strategy and its many complex, interacting organizational parts. To address such situations, PwC’s strategy consulting team Strategy& designs new operating models, based on market economics and customized to deliver against shareholder expectations, customer needs, and the relationships among the constituencies in the organization’s extended enterprise.

Tailored to meet a company’s particular situation, a new operating model typically includes any or all of the following elements:

  • Market-like mechanisms for allocating scarce resources
  • A decision-rights framework that clearly identifies and motivates individuals to work, individually and together, toward strategic objectives
  • Profit-accountable business units formed around distinct value propositions
  • Overhead optimization and outsourcing based on market models to serve internal clients responsively and competitively
  • Lean and strategically focused head offices
  • Alliances and partnerships with best-in-class providers to leverage scale, access expertise, and increase flexibility
  • Linkages among organizational elements that measure, inform, and motivate them to effectively work together to execute the firm’s strategy
  • Defining the people requirements of the new operating model as well as designing the initiatives to make fundamental change happen

Strategy& has deep expertise to not only design operating models and organizations, but also to help realize the potential of a new organization by deploying our experts in organization efficiency, outsourcing, human capital and talent management, learning and leadership development, change management, and strategic communications.

Digital culture

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Our video highlights how companies can use the strengths of their existing cultures to support their digital strategies.
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This blog post first published on explains the four steps companies need to take to ensure their cultures support their digital strategies.

How we help our clients

Organization design and organizational DNA

We take a holistic approach to organization, from the structural elements of organization design (corporate operating models, business units, functions) to the informal elements that influence its success. Our Organizational DNA capability examines the underlying factors that together define an organization’s “personality” and help explain its performance, distilled from years of experience studying how companies organize and execute.

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Organization efficiency

We assist clients in responding to competitive pressures by restructuring their organizations and achieve step-change improvements in cost performance. We help them cut costs to grow stronger, ensuring resources are placed in capability areas that will differentiate their marketplace performance. This often involves creating a lean headquarters model, setting up and optimizing shared services, leveraging outsourcing and off shoring, and redesigning business processes end-to-end. Our capabilities span the full lifecycle of a cost transformation ― from the strategy/diagnostic phase to detailed design and through implementation.

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People capabilities/ Global talent innovation

In the global knowledge economy, competitive advantage is determined and driven more than ever by human capital. Our dedicated team of functional experts and thought leaders in HR and talent management helps clients build differentiated employee capabilities across the business. We also focus on improving the capability, effectiveness, and business alignment of the HR function.

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Change management

Change management is a systematic approach for enabling an organization to transition from a current state to a desired future state. Inadequate change management increases risk of failure for any new strategy implementation or organizational transformation. Our approach is to balance formal and informal interventions to ensure that leaders drive and role model the change, people throughout the organization adopt new ways of working, and the business benefits of the change are sustained.

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Corporate governance

We believe companies must look beyond mere compliance and embed corporate governance in the business processes and culture of the organization. We address corporate governance at the shareholder, board, and management levels through five service areas: Defining corporate governance framework; refocusing corporate governance on value creation; measuring performance and creating accountability; creating a complete system; and creating cohesiveness among management and board members.

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Our thought leadership

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Strategy& has examined CEO successions and success among the world’s top 2,500 public companies. This year we’ve assessed how much progress companies have made toward better CEO succession planning.
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There is a golden opportunity today for the leaders of HR, IT, finance, operations, R&D, marketing, sales, sourcing, and other corporate functions and shared services.
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The Bay Area is famous for its long history of leadership in innovation-based industries. Strategy& worked with the Bay Area Council Economic Institute to identify the strategic, cultural, and organizational attributes.
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Drawing on recent research and real examples, the article’s authors present a new approach that leverages what is strongest in an organization’s existing culture, providing a practical road map for real, substantive evolution in employees’ ways of behaving by focusing on a few critical shifts.
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This article, published in the April 2012 issue of the Harvard Business Review, looks at the logical evolution of a CEO’s span of control and offers advice for managers as they progress in their careers.

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