Restructuring
The development of a set of guiding principles is the first step in the organization structuring process - they define the parameters and desired attributes of a new organization.
Creating organization structures requires a set of guiding principles that are consistent with the overarching direction of the organization, but are specific and relevant to the individual processes. The following are principles of restructuring:
1. Align structure to strategy: All restructures must align to strategy. This may seem self-evident, yet a significant number of organizations fail to do so. For example, if local conditions are a predominant factor, then stress local sales and marketing functions rather than a centralized behemoth that then tries to matrix with local elements.
Aldi ensures that it trains the employees to ensure that they are well informed and work with the core principles in mind that is responsibility, consistency and simplicity.
2. Reduce complexity
Simplicity is one of Aldi’s core values it ensures that all complexity costs are done away with. Whether it is a complex organizational structure, a complex product offering or complex transactional processes, the added cost of complexity can be a drag on performance.
To mitigate complexity, there are three considerations that help with organizational design:
I. Design structure for strategy before you design for specific personnel. Organisational redesigns which are a compromise between strategic intent and line management preferences inevitably add complexity. So, while internal political intrigue is unavoidable, at least start with a clean and clear design that matches to strategy.
II. Avoid making leadership roles too complex.
III. Minimise the use of matrices. They introduce