You've done the org design. New structure, new role descriptions, the lot. So why isn't it working?
Stefan Norrvall has a theory, and it starts with a simple observation: every organisation does three completely different kinds of work at the same time, and we keep treating them as one thing called "work". He joined me on the Change It Podcast to explain his run, serve, change model.
What are run, serve and change?
- Run: the operational work that keeps the lights on and delivers today's promises to customers.
- Serve: coordinating and integrating work across teams, because most organisations have more than one product or service.
- Change: changing the organisation itself, including sensing the outside environment and adapting to it.
Each carries a different kind of complexity and works at a different pace. Treat them as "just work" and things start to break.
Why it matters
Stefan describes a coherent organisation as one where decisions are made at the right level, by roles with both accountability and authority, and where acting on that authority doesn't need pre-alignment, sponsorship or special courage.
When that breaks down, you pay what Stefan calls the confusion tax. We unpack it in our blog: 'Why people resist change'.
Build change into the work
Stefan's model repeats at every level. Run has its own serve and its own change. Teams should be able to change how they work within boundaries set at the enterprise level. They can't, for example, decide to enter a new market alone. It's a bit like teaching people to fish, not doing the fishing for them.
Built this way, change isn't a bolt-on. He says organisations that are really good at change rarely talk about change management, because it's part of how they work. Most programmes do the work first and then try to convince everyone it's good for them, which he says is too late.
Four things to try
- Name the three types of work. Ask where run, serve and change are being treated as one.
- Let run change itself. Give teams the authority to change how they work within clear boundaries, and be clear about what only the enterprise level can decide.
- Protect your serve functions. Centres of excellence are serve work. When they do it well, problems don't happen, so their value is easy to miss. Stefan compares it to dismantling the fire department because there are no fires. Executive tenure is often only two to four years, so the function gets removed, missed, then rebuilt at a higher cost.
- Follow See, Shape, Grow. See how the system really works today. Shape the critical interventions. Grow leadership capability so you don't rely on outside support.
Listen and next steps
- Listen to the full episode with Stefan Norrvall
- Hiring for org design or transformation roles in Australia? Talk to us about employer search
