Current Organizational Design Has Aged Out
The design of an organization — the structure, leadership, and processes that govern it — has the power to unleash the full potential of human capital to pursue the organization’s purpose and convert the cost of that capital to strategic advantage. But in today’s customer-led and disruption-rich market, most organizations are proving to be slow, rigid, and culturally tone-deaf. Designed on the principles of stability, accountability, and control, they protect entrenched politics and create hard-walled, politically laden silos, long decision cycles, and disjointed customer experiences that stymie change — and frustrate customers.
Instead of unleashing the value of human capital, the current design of most organizations is creating dangerous inertia in fast-moving markets.
Experience Index (CX Index™) results show another year of flat results as CX teams
fail to champion the organizational change needed to pursue more than cosmetic
• Digital transformations are underway at over half of ﬁrms, but few have moved beyond bolt-on efforts to optimize individual channels or functions. Analog-first, silo-oriented political capital continues to create powerful inertia.
• Only 32% of employees in the US — 13% worldwide — are engaged, meaning they are involved in, enthusiastic about, and committed to their work and workplace. Yet leadership shows little appetite to change the norms that made their careers and shaped their teams. CX combined with employee experience (EX) can create a powerful force to drive internal and external change. But this remains a potential, not a realization, for most.