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global coordination across solutions. The anizational design team is addressing the design issues related to Sales, Operation and Delivery (Shared Services), and Consulting. Global Strategies Addressed by Organizational Design Project 16 Organizational Design Guiding Principles Organizational design guiding principles are derived from inAble guiding principles Strategic Focus and Execution: Business models will be focused on understanding market forces and opportunities, and shifting priorities to follow market dynamics. Proactive Research amp。 Delivery The internal efficiencies and management of the processes that enable the operations and delivery of products and services and support of the client. Innovation and Product Development amp。 s al es funct i on? Car ee r path i n the s al es funct i on? O pti mi z ati on of al l s al es peop l e as a resul t of c entrali z edfoc us? Hi gher foc us on cl i ent qual i ty resul ti ng from c l i entmanagement a nd sal es i nterface? Pri mary del i v ery foc us wi thi n Sol uti on/Product groups? Requ i res s i gni fi c ant i nterface between sal es and sol uti onsfor pro d uct and st rategic devel opment? Sol uti on/Product groups hav e P/ L r esponsi bi l i ty , butl i mi ted i nfl uence ov er the sal es funct i on? Strategi c al ly – B ig c ul tural s h ift? Not ti ghtl y i ntegra ted wi th ma rket s ol uti ons? Sol uti on/Product groups de pend ent on the Bus i nessDevel opment grou p for n ew and exi s ti ng sal es c hann el s? Sol uti on/Product groups m ust c oor di n ate wi th theBus i ness Devel opment grou p for pr oduct an d s trategi cdevel opment? Cl i ent Management g rou p mus t rely on the S ol uti on/Product grou ps for i s s ue resol uti on21 Additional Design Considerations In addition to the choice of a sales anization model, several other major design decisions are critical Solution / Product structure Shared Services model Consulting / Professional Services Business Performance Management 22 Solution / Product Structure Metavante’s business is currently anized and run along business lines which represent sets of products and services. The inAble strategy drives a business focus around “market facing solutions” which bundle products and services according to the way they are sold and delivered in their target markets. The inAble strategy requires focus, ownership, and accountability around solutions, which implies significant change from today’s productfocused business structure. A solutionbased structure supports the clientcentered focus by shifting the view from multiple, individual product silos to aggregated market solutions. Although multiple alternatives are possible to define how products are shared across multiple solutions, the following mon characteristics of the alternatives are more important than the differences: responsibilities previously associated with the product level are shifted to the solution level (. product branding / marketing) matrixing of products into solutions crossing anizational boundaries is required in any alternative structure 23 Alternative structures for Solution and Product groups Solution Groups Product Groups Products Products Products . Alternative 1 ? Similar products are aligned to form a product group ? Delivery of products flow through the product group with dotted line alliance to a solution ? Solution groups focus on strategic development Alternative 2 ? Solution and product strategy is developed within the solution groups ? Solutions will pull through products from other business groups when applicable ? Products that “most” align with a solution are grouped together and report through a solution group Business Groups Business Groups Solutions Products Solutions Products Alternative 3 ? Both solution groups and products report through a “business group” ? Solutions will pull through products from other business groups when applicable ? Delivery responsibility primarily lies with the product group Pros: ? Product life cycle strategies are separate from delivery functions ? Products serve all solutions equally Con: ? Potential for products to bee siloed ? Increased number of direct reports Pros: ? Greater focus on delivering a solution rather than only a product ? Product life cycle strategies are separate from delivery functions ? Decreased number of direct reports Con: ? Cross solution delivery may be plex ? Product emphasis may be weakened in hierarchical environment Pros: ? Decreased number of direct reports ? Business groups are equally split between strategy development and product delivery Con: ? Cross solution delivery may be plex ? Potential for products to bee siloed ? Adds a layer to management structure Solution Group Products Solution Group Products Solution / Product Structure 24 Shared Services Model An early finding in both inAble and Organization Design work is a broad consensus that: Metavante has not gone far enough in standardizing and consolidating mon functions that are performed in multiple business units Significant opportunities exist for cost reduction and improved efficiencies As a baseline, the following are best practices describing key attributes and characteristics of successful shared services environments Key attributes of a shared service center include: Operates as a standalone supplier (maintains its supplier P/L) Consolidated with dedicated resources Focuses on internal customers and external clients Uses service level agreements (SLAs) and performance measures to ensure quality of services Charges the business units for services provided for them Processes that are homogenous across business units should be c