Thirty one percent of companies in India are considering a different organisational structure. This is part of the key findings of this joint study by CII and Willis Towers Watson. The top five drivers for considering this change include creating a performance-driven culture (49%), meeting changing customer demands (41%), supporting change in strategy (36%), changing the behaviour and mindset of the workforce (34%) and cutting costs (30%).
Polling more than 100 organisations, with almost half at CXO levels, the study 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.
Many factors, both direct and indirect, lead organisations to change their business model and growth strategy. The study found that 61% of the organisations are considering expanding their products / services portfolio; 42% are considering geographic expansion; while, 13% are considering merging with or acquiring another company.
The study also reveals that organisations are making or are planning to make efforts to fix organisational structure-related challenges over the next three years. For example, 73% are paying more for certain skills, 60% are deploying work to other locations and 57% are focusing on workplace flexibility.
Further, 28% respondents felt they had excess manpower in revenue generating roles, while 40% said they had excess manpower in support roles.