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Understanding the Importance of Organizational Analysis

Updated July 2021

HR Question:

Our business needs and demands have grown dramatically as a result of the pandemic, and this is putting a strain on our employees. I want to make sure that we approach the growing and changing needs strategically rather than using a band-aid approach for quick fixes. What do I need to do to make sure we have the right people in the right places to continue our success?

HR Answer:

You are not alone in navigating through a changing business environment as more businesses reopen or ramp up at the same time consumer confidence and demand increases. While having a business that’s growing gives reason for celebration, it often comes with challenges as well. The changes you are navigating can bring about strategic challenges that you hadn’t anticipated, so being thoughtful about how to address them and determining the necessary steps to best manage your growth and achieve your desired business results is key.

A simple framework to think about change is “Strategy > Structure > People”. These are sequential steps, since the first informs the other, and often helps you get to root causes versus putting band-aids on problems. A very effective tool you can use to assess and understand your business and staffing needs holistically is an Organizational Analysis. An Organizational Analysis can help you to determine how your current organization structure is supporting the business results. It will also help you to further identify if your structures, processes, and people strategy are optimal as you move forward.

How to conduct an organizational analysis

An Organizational Analysis begins with an in-depth review of your high-level organization initiatives and structure, including:

  • Vision
  • Mission
  • Strategic goals
  • Financial goals & metrics
  • Business operations
  • Organization values
  • Organization chart

How employee surveys and focus groups can help

To ensure a comprehensive perspective, it can be beneficial to conduct employee surveys and/or focus groups with key team members to get to a deeper understanding of what’s driving your organization, in addition to identifying barriers or inefficiencies. Those closest to the work can often tell you where pain points are, provide suggestions for improvements, or tell you the work that is value add versus not.

Identify gaps and take action

By reviewing all of the data mentioned above, it will present a complete picture of what your organization is doing right and shine a light on gaps or areas that could be improved. From there, specific actions can be identified to create complete alignment throughout your organization and to ensure that you are able to not only maintain but expand upon your current success.

Your organizational analysis could reveal necessary actions such as:

  • Realignment of your organizational structure
  • Redefining operating norms, processes, and procedures
  • Addressing potential root causes which can help improve operations
  • Redesigning job functions and descriptions

The Institute of Organizational Development gives 7 reasons why organizational development is of critical importance to grow business, and an Organizational Analysis is a powerful tool to keep you focused on the big picture and making smart strategic decisions while building your organization from the inside out.

 

HR Strategy often involves thinking ahead to the future and making plans for the growth and development of key players. strategic HR inc. understands the balance between company strategy and people strategy and can assist you with both needs. Not only do we have the expertise to help you develop a strategic plan for your company, but we also have resources to help you develop your people leaders. Visit our HR Strategy page to learn how we can assist you with your company strategy.