It is above all in times of crisis that organizations need to review their efficiency, results, organization and profitability. However, at all times, the final objective of companies is always to offer a good service or a good product, designed not only for today, but also taking into account the long-term sustainability of the company.
Thus, in a market as fluctuating as the current one, the corporate strategy must be constantly reviewed. This is a fundamental exercise, because depending on the basic adaptations, it will also be necessary to change the inside of the business organization so that it is more effective and efficient.
In this sense, it is the company's strategy that should set the agenda with regard to how the organization should be structured to achieve its main objectives in the best possible way.
constant review
It is above all in times of crisis that organizations need to review their efficiency, results, organization and profitability. However, at all times, the final objective of companies is always to offer a good service or a good product, designed not only for today, but also taking into account the long-term sustainability of the company.
Thus, in a market as fluctuating as the current one, the corporate strategy must be constantly reviewed. This is a fundamental exercise, because depending on the basic adaptations, it will also be necessary to change the inside of the business organization so that it is more effective and efficient.
Structuring
In this sense, it is the company's strategy that should set the agenda with regard to how the organization should be structured to achieve its main objectives in the best possible way.
For example, if the corporate strategy points to constant and aggressive commercial activity, then the structure, as a company, must have a large and ambitious commercial force. If, on the other hand, the corporate strategy focuses on customer service as a distinctive feature of the competition, the organizational structure must have an attentive and meticulous after-sales team that follows up on all customer complaints and wishes.
The internal review of the organization of the entire company requires certain basic points for a realistic and complete analysis: it is essential to know where the company is heading (the aforementioned corporate strategy), to know the financial structure that will allow it to go in one direction or another in the future and , finally, review in detail all the purely organizational aspects, namely:
- Arrangement of the organizational chart (how people are structured around tasks, lines of hierarchy and responsibility established);
- Definition of jobs (who does what and how); and
- Definition of work processes (which information flows are established for carrying out all the company's tasks).
The example of Lledo illustrates how it is possible to constantly adapt the organization in relation to the evolution of the company's strategy.
Lledó Iluminación: A success story
Lledó Iluminación is a company that has an attitude of constant adaptation. In this sense, the resources and effort invested in adapting and improving its processes to production requirements, adapting its policies to the reality of each moment, adapting its strategy to the demands of the market, the sector and its customers are remarkable.
Within this context, the company decided to adapt the organizational structure of the company's central departments to the company's new strategy, marked especially by market fluctuations.
Objectives
To achieve this goal, the following main objectives were established:
- Eliminate inefficiencies and redundant tasks in processes;
- Identify the appropriate number of people for each central services department;
- the key competences of each job.
The analysis of the corporate strategy, financial structure and business framework was the starting point of this process.
The “picture” obtained or “conceptual framework” allowed us to carry out a deeper analysis later, understand how the company was structured and make decisions regarding the reorganization needs of the different areas.
Once a “photograph” of the business was obtained, the project was developed in two phases:
1 - Analysis of the Current Situation:
It consisted of an in-depth study of the three areas of work:
- Organization;
- job descriptions;
- Business flows.
Through the LBC methodology, strong and weak points and opportunities for improvement were detected. A social study was also carried out to identify possible resistance to change and organizational and operational performance indicators were established.
This phase allowed establishing a working base from which monitoring and constant contact with the client would help in orientation and subsequent decision-making.
2 – Proposal for a New Organizational and Operational Model:
The previous analysis provided the necessary information to elaborate creative and realistic solutions, which took shape in the form of business scenarios, which were presented to the client to help him make his choices.
After choosing, by the client, the most attractive scenario, a new organization chart was defined with the corresponding job descriptions, together with the sizing of the various departments.
Finally, the business flows were designed that would facilitate greater control of the activity and that would make it possible to make the most of the company's powerful information systems.
During this phase, Lledo and LBC worked closely together to assess the different scenarios and guide the final decision on the company's new structure and operating model.
Culture change
As a result of the project, an organization of central services was defined capable of facing the company's new strategy, more efficient in its processes and, therefore, with a greater use of its own resources.
Inherent to the whole project was, in a subtle way, a change in the company's culture, from which flexibility and adaptation to a changing environment became key values and were reflected in the new behavior of employees.
The Lledó Group sells more than 25 products, from lighting fields to control systems or metallic structures. The Group has a team of over 4 employees, spread across Spain, Portugal, France and the Netherlands.