Assessing The State of Your Organization

Posted by LC GLOBAL® - Organization Design & Development on December 20, 2023

At the beginning of 2023, McKinsey surveyed more than 2,500 business leaders around the world. The results went into the report on The State of the Organization 2023.

At the time, only half of the participating organizations said they were well prepared to anticipate and react to external shocks, and two-thirds saw their organization as overly complex and inefficient.

How have you been doing with the 10 shifts that were predicted to be most pressing this year? Which topic mattered the most in your organization?

The predicted shifts and expected transformation needs included:
1.  Increasing speed, strengthening resilience – Developing the ability to bounce forward and quickly get out of serial crises.  Streamlining processes and boosting cross-collaboration. Fostering an Agile Culture and encouraging a culture that values adaptability, quick decision-making, and continuous learning. 

2. ‘True hybrid’ – Finding a proactive balance of in-person and remote work. Creating transparent, authentic, and sustainable policies that support your employees as well as your business purpose. Equipping your employees to excel in a hybrid environment and enjoying hybrid collaboration. 

3. Making way for applied AI – Using AI to create sustainable talent pipelines and improve the way we work. Ensuring that there is a robust and creative interaction between AI and your employees as well as customers. 

4. New rules of attraction, retention, and attrition – Tailoring employee value propositions to individualized preferences to close the gap between what people want and the company needs.

5.  Closing the capability chasm - Building institutional capabilities (people, processes, and technology) that help consistently perform better in one aspect than competitors. Following market trends to always understand which capabilities will be needed in the future and proactively working toward retaining them. 

6. Walking the talent tightrope – Balancing budgets while retaining matching top talent. Finding ways of turning your company into a talent magnet that attracts matching top talent and manages to maintain it effortlessly. 

7. Leadership that is self-aware and inspiring – Developing leadership that is keenly aware of themselves and the people or the environment around them. Understanding future-fit leadership capabilities and providing an environment that attracts and empowers leaders to act with foresight. 

8. Meaningful progress on diversity equity, and inclusion – Making progress within the organization and for its communities. Creating an environment where individuals from diverse backgrounds feel valued, respected, and empowered to contribute their unique perspectives and experiences. Creating a place that sparks a sense of belonging and manages to reach out to communities while making a positive difference inside out. 

9. Mental health - Investing in a portfolio of interventions. Offer access to mental health resources such as counseling services, employee assistance programs (EAPs), or partnerships with mental health professionals. Foster a supportive and inclusive work culture: Create an environment where employees feel comfortable discussing mental health concerns without fear of stigma or discrimination. Encourage open communication and provide resources for seeking help.

10. “Efficiency reloaded” – Going from managing immediate crises to deploying resources where they matter the most. Staying informed about industry trends, market dynamics, and competitors' strategies. Assess how well the company is adapting to changes and maintaining a competitive edge.

As the year winds down, the question is: Which of these aspects were mostly prioritized in your organization? Where must we all still do a lot better? Which other pressing needs do you see? What are your organizational design goals for 2024?


Topics: Organization Design, New Work, AI, Assessment

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