Thirty one percent of companies in India are considering a different organisational structure. This is part of the key findings of a joint study by Willis Towers Watson and Confederation of Indian Industry (CII). The top five drivers for considering this change include creating a performance-driven culture (49 per cent), meeting changing customer demands (41 per cent), supporting change in strategy (36 per cent), changing the behaviour and mindset of the workforce (34 per cent) and cutting costs (30 per cent).

Polling more than 100 organisations, with almost half at CXO levels, the study, titled “Willis Towers Watson – CII Study on Organisation Structures in India”, analyses if and how current organisational structures in India are aligned to growth-enabling business strategies. It also examines a range of indicators of any impending challenge that could arise due to ineffective and misaligned structures.

Commenting on the study findings, Mr. T V Narendran, CEO & Managing Director, Tata Steel Limited, who is also the Chairman, CII National Committee on Leadership and HR, said “Today, India is counted amongst the countries that will drive the global economy. Given the rapidly changing work and workforce related dynamics, it is reassuring to note that as many as one in three companies in India are re-evaluating the compatibility between their growth strategy and current organisation structure. This is a progressive step that would enable companies to drive growth, mitigate risks and institute strong governance structures”.

Many factors, both direct and indirect, lead organisations to change their business model and growth strategy. The study found that 61 per cent of the organisations are considering expanding their products / services portfolio; 42 per cent are considering geographic expansion; while, 13 per cent are considering merging with or acquiring another company.

Stating the top challenges resulting from an unsuitable organisation structure, respondents identified a lack of adequate functional experts, greater focus on meeting functional goals instead of customers/organisation wide goals, being middle management heavy and lack of innovation.

Mr. Chandrajit Banerjee, Director General, CII said “The study findings are significant, especially at a time when Indian companies are not only expanding their global footprint but catering to a new and ever expanding domestic consumer base and all of this in a rapidly changing business environment. It seems evident that organisations need to get the basics, like their organisational structure, right, to ensure they are well placed to cater to a changing business strategy”.

Source: CII
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