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Organizational Structure Options. 2009 RBAP-MABS National Roundtable Conference May 12-13, 2009 Hyatt Hotel and Casino Manila. Jove Tapiador MABS Regional Manager, Luzon. Introduction. Organizational effectiveness and efficiency is founded on the institution’s shared vision;
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Organizational Structure Options 2009 RBAP-MABS National Roundtable Conference May 12-13, 2009 Hyatt Hotel and Casino Manila Jove Tapiador MABS Regional Manager, Luzon
Introduction • Organizational effectiveness and efficiency is founded on the institution’s • shared vision; • clear strategy; and, • a well-defined structure.
7S Framework • McKinsey’s 7S Framework • Shared Vision • Strategy • Structure • Systems • Skills • Staffing • Style
Organizational structure changes in response to changes in the shared vision and strategy as well as changes in the operating environment. • This is what it means to be flexible and adaptable.
Oftentimes, managers focus on the their behavior or their staff’s behavior. • At other times, managers look at their staff’s skill sets. • Sometimes, they assume that a vision and clear strategy will take them through. • McKinsey’s 7S Framework • Shared Vision • Strategy • Structure • Systems • Skills • Staffing • Style
But often what is ignored is how an organization’s structure and systems affect implementing activities. • Without subsequent modification, people revert to their old habits, become frustrated, or find themselves facing inflexible policies and procedures. • McKinsey’s 7S Framework • Shared Vision • Strategy • Structure • Systems • Skills • Staffing • Style
Case Studies • Cases show how three organizations adapt to changes in the marketplace, increase in clients, increase in geographic scope, and greater regulation. • This also attempts to visualize next evolution of microfinance organizational structure.
Crystal Ball Exercise • Year Clients Account Officers/Supervisors • Year 1 150 2 • Year 2 300 3 • Year 3 900 7 • Year 4 1,800 13 • Year 5 3,600 26 • Year 6 7,200 52 • Year 7 12,000 105 • Year 8 17,000 117 • Year 9 21,000 144 • Year 10 25,000 170
Others would shrug it off. “I don’t believe we’ll reach that size.” (Lack of Vision.) • Others would say, “That’s great! That’s what I want. Now how will I go about it?” (Lack of Strategy.) • Then some would mutter, “I know that will happen, we’ll just do the same things we’ve been doing.” (Lack of flexibility.)
Banks need to often re-align organizational structure and systems to meet the challenges of growth: • More clients leading to more capital requirements • More capital leading to more fund raising activities • More clients leading to more staff and support people • More people leading to more management time, attention, and resources • More management time, attention, and resources leading to more management specialization and control.
Conclusions • A clear vision and detailed strategies are not enough. • At a certain scale, employee behavior modification and management training have limited impact. • Accept reality of complexity in large organizations. • Therefore, attention to reporting structures and improving bank-wide management systems become critical.
McKinsey's Performance Leadership Survey: • An in-depth questionnaire designed to explore an organization's effectiveness. • Set up in 2002, the database contains information from almost 400 discrete business units of 231 global businesses in all major regions and industry sectors. • More than 115,000 individual managers and employees have participated.
The study revealed the following key strategies to organizational effectiveness: • Clear vision and strategy • Accountability • Openness and trust, basis of performance culture
