NEW BUSINESS MODELS REQUIRE NEW ORGANIZATIONAL DESIGNS
Challenge
An Italian manufacturing company used the ONA to map the effective span of control of its managers and avoid the risk of burdening the structure with unnecessary organizational layers.
Insights
HOW4 developed a unique approach to the span of control analysis and allowed to:
- Unveil informal leaders and check if formal ones gained bottom-up recognition
- Calculate the number of collaborators who referred to them as “their managers”
- Calculate the index of complexity of the relationships that managers have to handle
Actions
The company, together with AVA Team, decided to:
- Remove management levels that do not add value
- Strengthen other managers as ‘gatekeepers‘, streamlining the structure
- Reduce the rules so as not to constrain managers and prevent them from exercising their judgment effectively