Organizational Structure & Design - AgilityHealth · Agile Organizational Design Patterns Go Wide...

Copyright© Agile Transformation Inc. 1

Organizational Structure & Design

Copyright© Agile Transformation Inc.

Intentionally designing the structure of your organization to maximize business agility. Alignment across teams (business & technology) to enable FLOW of value.

2

Org. Structure and Design is…

Enterprise Value Streams

Copyright© Agile Transformation Inc. 3

How Might We?

Design true end to end cross-

functional teams?

Align teams around value streams and

business outcomes?

Give them stability and

focus with the right

allocation?


Organizational

• Speed of execution

• Architectural robustness

• P&L and Budget alignment

• Capabilities

• Business value streams

• Development value streams

• Shared services

• Enterprise solutions

• Dependencies

• Size

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Org Design Considerations

Teams

• Cross-functional

• Skills needed to deliver

• Component or Feature

• Dependencies

• Allocation of people

• Run/Grow/Transform focus

• Nature of the work

• Team Size


Start Small

1. Pilot with targeted project teams

2. Significant, high-priority initiatives

3. Existing business teams OR IT Teams

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Agile Organizational Design Patterns

Go Wide

1. Value Streams (Business and Development)

2. Business Capabilities

3. Technical Components

4. Customer segments or journeys

Org design is a complex activity. We recommend facilitating a 2 day workshop to develop your future org design structure and gain feedback from managers and

teams. Start with intent and outcomes desired for your new structure.


Designing Stable Teams

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Benefits of Stable Teams

Adapted from Tuckman Model 1965

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Stable Teams – Best Practices

• Build “empowered” Cross Functional teams that have all the skills, tools they need to design, develop, test and release that can deliver from “concept-to-cash”

• Bring the work to the team, don’t pull the individuals to the work – Keep the team together!

• Let the teams FOCUS and finish what they start• Encourage High Collaboration and Self-Organization• The team co-locates physically or collaborates virtually

and works together daily practicing Agile.

“Stop Starting and Start Finishing!”

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The Basic Stable Team Structure

Business VisionWhat? Why?

ProcessFacilitatorTechnical

Vision

How?Measurement

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Backlog

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Value Stream Discovery Journey

Step 1 – Define the Strategy for VS

• Strategic intent & themes

• Business processes / Journey Steps

• What to optimize for?

• Design principles & guardrails

• Define strategy for VS

• Who to invite for next step

Step 2 – Capability Deep Dive

• What are the business & tech capabilities for each journey step

• What are the systems that enable

• What shared services are needed

• Who to invite for next step

Step 3 – Logical Teams Design

• Who are the teams needed

• Skills & Roles

• # of teams

• Core or shared

• Managers & stakeholders

Step 4 – Physical Teams Design

• Leadership Triangle

• Team members needed

• Transition Plan

• Risks & Mitigation

• Workspace

• When to transition


Sample Value Stream

• Release past models for new thinking• Develop a “growth mindset”• Hit the easy button – Simple Solutions

• All work should be visible and on the train• Empower Team members - Push decision

making down to the lowest level

• Buy don’t build where ever possible• Experiment – fail and learn fast• Systems thinking at every level

Customer Portal

Insights & Analytics

Distribution Support

Billing & Payments

Systems

Business Processes

Run, Grow, Transform

A-1 Insurance Employer Services Value Stream

New Product Development

Enrollments

CustomerInsights

Solution Ideas

Customer Leads

Customer Application

Receive Service

Process Payments

Bill Customer

Service Request

System Team

• 2.5 M individuals• Early adopters• Middle income bracket• Age 25 to 40

Customers / Market Segments

DiscoveryTeam

• Product Definition• Architecture Design• CX Design• Customer Insights

Intuitive CRM

Campaign TRACK

AP SCAN Business Intel

Business Rules Engine Rapid Bill & Pay

Customer Support

Guiding Principals

Mid Size Employers Team of Teams 2

Portfolio Mgr.

Business / VS Lead

Ent. Architect

A-1 Insurance

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- 2 - - 3 -

Sample Team of Teams

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Mgt. Team FeaturesOutcomesCapacityAllocation

Mid-Size Employers

Growth Team

Capabilities

Marketing SalesCustomer

ServiceClaims

Channel Mgt.

Product Mgt.

Billing & Payments

Systems

Campaign Track

SaaS CRM

Self-Service Portal

AI Claims

i-DistributeInsights Engine

Rapid Bill and Pay

Run, Grow, Transform

Discovery Team

Teams

Marketing Team

Sales Team

Insights Team

Portals Team

ClaimsTeam

Finance Team

ChannelTeam

Shared Services

A-1 Insurance


1. Market Segment / Customer

2. Products & Services

3. Consistent tech or business capabilities/processes

3 Areas to Optimize For

If you optimize for one (align the entire org and funding around it) you’ll need to mitigate for the others (group

teams within the VS or assign capability owners).


Conceptual DesignCustomer facing vs shared services

VS 1 VS 2 VS 3 VS 4 VS 5

Customer facing value streams

Shar

ed S

erv

ice

sva

lue

stre

ams


Activity: You Turn!


Conceptual Design5 Ways to Integrate Shared Service Teams


Customer facing value streams

Shar

ed S

erv

ices

valu

e st

ream

s

Shared service value streams support customer VS by:

1. Embedding a team

2. Embedding people

3. Accept backlog items

4. Knowledge Transfer

5. Expose APIs


Activity: Your Turn!


Conceptual DesignWhat to Optimize for and how to mitigate for sub-optimization?


Customer Segment Value Streams

How do we optimize for the

other levers? How do we maintain

consistent processes or tech capabilities across

value streams?

Pro

du

ct

Focu

s

Jou

rney

St

eps

Cap

abili

ty

Prospect to Lead

Product A Product B Product C Product D Product E

Quote to Close

ValueDelivery

Service & Support

Bill to Cash


Activity: Your Turn!


Insurance Services Example


Employer

How do we optimize for the

other levers? How do we maintain

consistent processes or tech capabilities across

value streams?

Sup

ple

men

tA

pp

licat

ion

to

Pa

ymen

t

Cap

abili

tySenior Health Wealth

Departing Well

Med

Ad

v


Activity: Let’s do an Org Design!


Determining Capacity Allocation

RunOperate & sustain

GrowEnhance & expand

DisruptInnovate & Drive

• Sustain, retain and renew existing business

• Run essential processes

• Keep the lights on

• Manage cost

• Extend current products/services

• Enter new markets

• Support sales and growth

• Execute on strategic themes

• High risk, high reward

• Innovations & experiments

• New capabilities & income streams

• Disrupt yourself before being disrupted


Role Transition & Agility

Executives & Line of Business Leaders

Supervisors and Resource Managers

Project & Program Managers

Team Members

• Embrace Agile & Lean Principles

• Champion and Support Change

• Provide clarity

• Shift to Strategy

• Lead with Agility

• Decentralize decision making

• Build High-Performing Teams

• Transition to Agile Roles

• Remove Impediments

• Develop people & skills


• Enable other agile teams with critical but limited skills (DevOps, CX, UX, …)

• Provide templates, tools, best practices, coaching & training

• Temporarily embed with teams to mentor new skills

Enablement Teams

Baseline Assessment

Create a Skills Growth

Backlog

Provide Tools & Best

Practices

Mentor & Coach Team

Enable Self-Learning

Re-assess & Update Backlog


• Create high performing cross functional teams that are aligned to strategic priorities to optimize capacity

• Design your organization with the customer in mind to maximize work flow and business value

• Involve and empower teams in growing skills and transitioning to new roles

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Summary


Workshop – Color the Radar

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Workshop – Let’s Explore

Share a challenge or success story

Organizational Structure & Design - AgilityHealth · Agile Organizational Design Patterns Go Wide...

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