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.
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.
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.
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.
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.
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.