Does the Organization : -Have common vision -Set goals and define priorities -Have clear values -Walk

the Talk -Trust each other -Communicate effectively -Make good decisions -Have strategic vs. tactical focus -Hold each other accountable -Handle conflict management -Have the right mix of talent Clear definition of how the org. needs to changeover timeto deliver the FIs strategy and an actionable plan of how to make the transformation
Organizational Strategy

Organizational Design

Vision, goals and Strategy: -From Strategic Plan -Data and Results Driven -Measurement Systems in place -Commitments -We Wills

Management Capabilities and Skills

Strategic Direction and Focus

Optimal Org. Design will: -Provide clear direction and leadership -Facilitate Decision making -Develop and Deploy good people -Drive front line execution Influenced by External Environment: -Economy -Competitors Design Elements: -Work processes -Human Resources Skills -Vertical/Horizontal Structure -Decisions and Information -Rewards and Recognition -Lateral Relations

Organizational Strategy
A financial institutions optimal strategy promotes collaboration vertically and horizontally; allowing more informal decision making closer to customers

Hybrid Organizational Model

A new model that blends the functionally aligned organization, typically relying on vertical communication, with one that is less formal, and more fluid, incorporating the input and interactions of people laterally across functional departments who are closer to the customer Real value will then come from creating and sharing knowledge, rather than just managing it.

Hybrid Model: Lateral Relationships

Effectively used to offset coordination problems in functional and divisional structures:
Dotted Line Supervision Liaison Roles Temporary Task Forces Permanent Teams

Hybrid Model: Lateral Relationships

Reduce unproductive complexity Increase collaboration Not ad-hoc, but part of culture Support the goal of creating an environment where decision making is faster, more informed and incorporates input from agents closest to the customer

Impact on Traditional Organizational Structure

New rules and realities impacting traditional hierarchy: -Position authority becomes less important when making decisions -Any team member can raise flags; and create new, fluid boundaries between siloed departments -Workers closest to business opportunities must collaborate closely with each other -Intangibles such as knowledge, methods, capabilities, and relationships are more important than ever, supporting the need to foster and promote lateral communication -New partnership is needed between CIOs and CMOs in order to act on customer information more quickly

Key Questions
Will the culture allow autonomy and freedom in decision making, developing and promoting new ideas and personal expression? How will this affect organizational strategy? What about the skills needed by Senior Management and the Leadership Team? How does talent management change? Who knows how to do that in the organization?

Additional Questions and Considerations

-What should lateral teams look like? -Who should they share knowledge with? -How long should decision making take? -How will traditionally structured firms measure performance in this new environment?