Why Your Organization Needs In-House OD Capability
The Need for Internal Organization Design Skills
Not long ago, organization restructuring was a rare event—happening once every five or ten years. Most executives and HR professionals might go their entire careers without leading one. That’s why external consultants were the go-to solution.
But today, everything has changed.
Market volatility, digital transformation, and talent shortages require organizations to adapt continuously.
Strategies shift rapidly, meaning structures must change in response.
Even at the team level, ongoing changes in personnel and priorities make static organization design unsustainable.
According to McKinsey, 60–70% of large organizations now restructure every two to three years. This means the traditional reliance on consultants for OD is no longer sustainable businesses need in-house capabilities for flexibility, cost control, and agility.
What Kind of OD Capability Do You Need?
Your approach to building OD expertise will depend on several factors:
✔ Organization size – Larger, more complex organizations may require dedicated OD teams.
✔ Rate of change – If restructuring is frequent, ongoing expertise is critical.
✔ Budget – The balance between internal and external OD resources.
✔ Where OD fits – Options include HR, a Transformation Office, or a standalone function.
Three common models for OD capability:
Dedicated OD Team – A separate function focusing solely on organization design. Best for multinational firms with frequent change.
OD Embedded in HR/Change Roles – Organization design specialists who also support change management, organization effectiveness, or talent strategy.
Hybrid Model – A small internal OD function that partners with consultants when needed. Works well for mid-sized organizations.
How to Build OD Capability
Hiring: Look for professionals with experience in org design, change management, and business strategy. Certifications like ODF or CIPD can indicate expertise.
Developing Internal Talent: Organization design is a critical HRBP skill—upskilling HR professionals can be an effective approach.
Training Broader Teams: Educating leaders and managers in OD fundamentals ensures they can contribute effectively to restructures.
With organizations restructuring more frequently than ever, building in-house OD capability isn’t just an option—it’s a necessity. How is your company preparing?