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www.stantonmarris.com
Building a healthy organisation with DMA levelsJohn Bruce-Jones
Pam Parkes, Croydon Council
November2011
© Stanton Marris & DMA Consultancy
One simple idea
Healthy organisations are efficient, effective, make and execute decisions without delay . They have motivated and productive employees with meaningful jobs and the freedom to exercise their responsibilities.
Unhealthy organisations have unhealthy management hierarchies: often too many layers, sometimes key layers missing. They do not work effectively and they carry unnecessary management cost.
Healthy organisations have effective vertical organisation design based on well-defined and clear Decision Making Accountability.
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The DMA approach
The DMA Solution Set is a robust proven framework, developed at Unilever and Tesco, which identifies accountable decision rights
Decision rights and accountabilities are plotted from customer to CEO
Every organization has a genetic code of decision levels – up to 8
Only 1 layer of leadership is needed for each accountability level
Conceptually integrated approach to organization design, leadership development and reward
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Decision Making Accountability levels are established by analysing seven DMA elements
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Research and interviews are used to set Levels and maximum layers
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Level 5
Level 4
Level 3
Level 2
Level 1
Example Job (and Layerin a Healthy Hierarchy)
Council CEO (Layer 1)
Director (Layer 2)
‘Senior Manager’ (Layer 3)
‘ Middle Manager’(Layer 4)
Team Leader (Layer 5)
Supervised first line employee (Layer 6)
Managers(based on
accountability, not job title)
= Supervisors
Nature ofLeadership
ExampleAccountability
Level
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Example analysis of your current layers
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Maximum allowed layers = example 6
50% of jobs in layers too far below the CEO
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Example: identifying areas for in depth analysis
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Analysis by directorate and within directorates
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Example: spans of control analysis
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IN THEIR OWN WORDS
https://rcpt.yousendit.com/1273419004/5ff83dc744ca8bfb10ef65e6b5b820b8
A closer look at our objectivesA closer look at our objectives
Empowered managers
greater power to make decisions
Staff are able to do their jobs
quicker decisions from management
Spans of control
Improved career progression
Cost saving efficiencies
Reducing management costs
Reducing management layers / spans of control, resulting in...
optimum number of direct reports for each role.
understanding the scope of each role, helps us to identify career paths.
