Regardless of whether or not it is formalized, the management framework as a whole is rarely revisited. However, the need for such revision increases as organizational structures undergo transformation and become more complex.
Context and challenges
Changing a management framework disrupts an organization’s governance and requires a special approach to change management.
The elaboration of a management framework starts with the following key questions:
- How can the management framework be adapted to cope with changes in the company's business model?
- What type of financial governance should be implemented to manage an international matrix organization?
- How can we financially motivate existing organizations to collaborate and disseminate expertise from centers of excellence to the majority of Business Units (BU), for example?
- Which performance indicators should be defined to ensure that the benefits of such a collaboration can be shared?
- How can the 1+1=2.5 principle be illustrated financially?
- What should the response to remuneration issues regarding managers' financial targets be in a collaborative matrix organization?
- How should operational cash-flow targets be defined? Is it possible to define standard rules for rolling out Days' Sales Outstanding (DSO) and the related formulas?
How can Argon Consulting help you?
- Defining or revising the management framework
- Specifying the performance measurement tools
- Managing change and supporting its implementation
To succeed, the dedicated change management initiative must be based on:
- Strong support from the executive management
- A vision, shared by the executive committee, of the company’s business models and general management framework
- The involvement of line managers, to ensure that the roll-out of the framework meets operational performance needs