Organizational change: Efficiency, Stability & Innovation

• Which structure is right for the future? For processes in which efficiency and stability are crucial and for those in which innovation and growth are the main priority?
• What kind of stable organisational units do we need, classic or agile? Which temporary and complementary structures can effectively support us in our collaboration?
• What kind of leadership functions do we want to establish - holistically responsible leaders, technical and people leads, temporary leadership roles?

In dynamic and competitive markets, companies often evolve as a result of many individual changes, in response to specific market requirements, sometimes through large-scale strategic initiatives. At some point, however, the company realises that its structures no longer meet market requirements, organisational units no longer work together in a meaningful way, the company has become too sluggish, or employee motivation is suffering.

Target-oriented adaptability is a key success factor for companies. The organisational framework must be designed in such a way that the people involved can devote their innovative drive and commitment to the company's key objectives, which are aligned with market requirements.

5P's organisational development approach takes a holistic view of business requirements, integrates cultural factors, and designs value-creating structures in a way that enables the highest levels of performance. Effective organisational development combines structured, systematic approaches with dynamic interventions that do justice to the systemic complexity of the company - together with the people without whom the organisation could not succeed.

In consultation with a large number of change managers from a wide range of organisations, we have developed the following theses:

Theses on business development
 

1. Success begins with meaningful objectives: Change initiatives must have clear, meaningful goals that provide direction and purpose to the participants.
2. "Next-level", not disruption: Changes should be understood as advancement and progress, not as disruptive interventions.
3. Dialog, not information: Communication in change processes should be dialogue-oriented to foster genuine understanding and engagement.
4. Methods that match the objective: Strategies and measures must be consistently aligned with the defined goals.
5. Psychological safety enables co-creation: A culture of psychological safety is essential for employees to actively contribute to changes.
6. Creators, not victims: Employees should be seen as active creators of change, not as passive victims.
7. Values become particularly clear during change: The true values of an organization become visible and are tested during change processes.
8. Coopetition with clear decision-making responsibilities: A balance between cooperation and competition within clear decision-making structures promotes change.
9. "Resistance is fruitful" before "Resistance is futile": Resistance should be viewed as valuable feedback and utilized, rather than dismissed as a hindrance.
10. Harnessing the power of emotions: Emotions play a central role and should be harnessed positively to support change processes.
11. Anything new needs structure: Every innovation requires clear structures to be implemented effectively and sustainably.
12. People make the difference: Ultimately, it is the people who make the difference and determine the success of change processes.

These theses offer a comprehensive guide for leaders and change managers who wish to guide their organizations through complex change processes. By considering these principles, they can create a supportive environment where change is not only possible but also sustainable.
 

Approach

Change projects today are generally no longer planned and implemented in a linear fashion, but involve iterative elements and ongoing adjustments. When it comes to changing organisational structures with major implications for the people involved - their future role, leadership and which team they belong to - it is helpful to have a clear framework for orientation.

Our basic model, which has been proven and further developed in numerous projects and which we adapt to individual requirements, comprises the following fields of action for leaders, HR management and other change managers:

The basic model is divided into five phases:

1. Conceptualization
2. Setup
3. Co-Creation
4. Cooperation Development
5. Transition

These phases are associated with various fields of action, each emphasizing different aspects of the change process:

• Purpose & Performance: This field is particularly significant in the Conceptualization, Setup, and Transition phases.
• Project Management: Especially important in the early phases (Conceptualization and Setup) as well as in the Cooperation Development phase. Effective project management plays a key role in implementing changes.
• Organizational Design: Emphasized more in the Setup and Co-Creation phases. Designing the organizational structure is an important aspect to support changes successfully.
• People Management: Highlighted in the Co-Creation, Cooperation Development, and Transition phases, underscoring the importance of leadership and employee support throughout the changes.
• Dialog: Plays a major role in supporting the change process, especially during phases 2-4 (Setup, Co-Creation, Cooperation Development).

The diagram shows that all these fields of action contribute to improving the organization's change performance. The model aims to increase the organization's adaptability and effectiveness through a structured approach to the change process.