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More importantly, this hybrid delivery model aligns products and services based on characteristics of the work (e.g., administrative, transactional, programmatic, specialist, advisory, or strategic narrowly or widely applied ongoing or event-driven) instead of by function (payroll, procurement, IT, benefits, staffing, or employee relations).

These new products and services delivery models include relying on centralized elements to achieve economies of scale and process consistency and decentralized elements to ensure a balance among quantities, service levels, and costs. Many organizations have been changing the framework for the delivery of products and services through “transformation” to solidify a new delivery model.

The advantages and disadvantages inherent in these organization models have promoted frequent switching from centralized to decentralized and back again without finding a truly successful means to deliver products and services. The decentralized model rectifies these downsides by giving the business units control over the function, but costs typically increase because economies of scale are lost and consistency diminishes. The centralized model boasts economies of scale, consistent processes, and functional specialists, but in an environment where the customer has little control over product and service mix, quality, quantity, responsiveness, and price. Decentralized organizations have reported directly to the business unit and focused on the unique needs of their specific organization. Centralized organizations have delivered products and services from a corporate-centric vantage point, allocating costs to their business unit customers. Traditionally, corporate function organizations have been designed either as centralized organizations in some companies or decentralized organizations in others. The key is dramatically reshaping the way corporate services are delivered to the customer and leveraging technology to do it. Terms like “strategic,” “business partner,” “scalable,” and “value-added services” are frequently used to describe the ideal functional organization.Īre these requests achievable? While it might appear difficult to be more business-oriented, globally integrated, and service savvy while reducing operating costs, many organizations have found it can be done. While meeting these new challenges, corporate functions providing internal service are also being required to be more business-oriented.

There is significant pressure on organizations to be financially nimble, lead the people and cultural aspects of the organization, standardize and globalize operations, consumerize service experiences, and cut costs. Rate Case Planning, Management, and Support.Performance Assessment and Benchmarking.Organization Design Consulting and Expert Staffing.