If you are trying to create a Greenfield, make a merger or an acquisition, or just start an organizational reengineering, firstly you have to define an adequate organizational architecture according to a strategic plan. Organizational architecture refers to the balanced combination and design of the organizational structure itself plus the processes, the human resourses management and organizational culture. During this design process, the organizational culture needs to be shaped by the most suitable leadership that best adapts to the strategy. LUV Microfinance has created new MFIs (greenfields and downscaling) and has also participated in mergers and acquisition processes, which has given the LUV consultants experience to face these kinds of challenges.
The organization architecture components mentioned above should be implemented following this sequence:
Organizational Architecture
1. Organizational structure
2. Processes
3. Human resources management
4. Leadership and organizational culture
The right combination of these components gives any institution the necessary stability to support all business, administrative functions and processes.