PRACTICE / MANAGEMENT

Organisation, control and decision mechanisms.

Allocate authority along the value chain, balancing central control with local responsiveness.

Methodology: The ZHICE Value-led Operating Method
THE REAL CHALLENGE

Define the problem first.

Organisational change is often reduced to adding or removing departments and layers. What affects operations more directly is how decisions are formed, professional disagreements resolved and responsibility for outcomes assigned. Excessive centralisation can weaken local responsiveness; delegation without capability and oversight can increase risk. ZHICE designs control models around critical decisions, accommodating both existing operations and new-business exploration. Mature activities emphasise standards and stability; new businesses use staged objectives and validation. Resource allocation and operating reviews keep the two coordinated.

BEYOND THE SYMPTOMS

Look beyond symptoms.
Understand the business logic.

Organisation and control diagnosis starts with actual decisions. ZHICE selects cases crossing levels and disciplines that affect operations, reconstructing how information formed, professional advice was handled, decisions were actually made and results fed back. Formal rules and actual authority are recorded separately to expose informal vetoes, duplicate approvals and accountability gaps. Business maturity, risk and staff capability then inform which matters to centralise, which to delegate under standards and which need explicit escalation and conflict resolution.

The target operating model connects roles, measures and management rhythms. Each responsibility must have corresponding decision content, information, resources and outcome accountability, preventing expanding responsibility tables from leaving actual decisions unowned. Mature and exploratory businesses can use different goals and resource arrangements while remaining coordinated under common governance. Trial critical decisions first, observing whether delegation is used, specialist checks work and exceptions are resolved; revise policies and staff capabilities from that evidence.

A TOOL FOR THE WORKING SESSION

Turn diagnosis into verifiable questions.

DECISION TOOL

Diagnosing organisation and control through real decisions

Swipe to explore the complete table

Review focusBusiness evidence requiredDiagnostic emphasisDesign response
Decision formationComplete records of proposals, specialist assessments, approvals, execution and outcome feedback.Who actually decides, whether information is sufficient, and whether informal vetoes or duplicate judgements exist.Identify the decision owner and specialist inputs, retaining valuable checks while reducing duplication.
Delegation conditionsActual role capabilities, data access, risk responsibility and oversight arrangements.Whether responsibility matches authority and delegated roles can obtain information and exercise judgement.Coordinate authority changes with capability, data and oversight, including exception escalation.
Cross-functional coordinationReal examples of shared tasks, interface deliveries, disputes and coordination meetings.Who owns the overall result, how disagreements are resolved and whether conflicting goals or information drive coordination costs.Define responsibility interfaces and shared objectives, handover requirements, escalation paths and response times.
Business differencesTasks, budgets, metrics and interim outputs for mature businesses and exploratory work.Whether uniform control constrains necessary experimentation or exploration lacks boundaries and stop conditions.Match authority and evaluation to the task, coordinating both through resource reviews.
Diagnosis is grounded in enterprise facts. Differentiated management does not weaken essential governance, oversight or safety responsibilities.

Four checks before the engagement begins

01Are decision rights, specialist advisory roles and oversight clearly distinguished and consistently applied?

02Do delegated roles have the necessary information, capability and resources, or only additional responsibilities?

03Are the final accountable owner and escalation timeframe clear when departments disagree?

04Do evaluation and resource rules suit the current tasks of businesses at different maturity stages?

HOW WE WORK

From diagnosis to implementation.

Three connected levels form the working approach. Select a stage to explore the detail.

01

Trace actual decisions

Reconstruct proposal, review, approval and execution for investment, procurement, maintenance and trading cases. Identify duplicate approvals, informal vetoes and gaps in accountability.

02

Distinguish management needs

Group activities by maturity, risk, professional capability and geography. Determine where common standards are needed and where regional or site-level authority is appropriate.

03

Examine governance burden

Check whether meetings, reports and approvals provide necessary information. Analyse why routine coordination consumes management time while retaining steps that provide meaningful checks.

TANGIBLE OUTPUTS

Deliverables designed for
real work.

Agree depth, data conditions and acceptance criteria at initiation. The engagement scope follows the tasks confirmed by both parties.

01

Target operating model

02

Headquarters and business-unit accountability map

03

Critical decision rights and escalation rules

04

Integrated role, performance and review arrangements

ILLUSTRATIVE SCENARIO

Redesigning headquarters and regional authority

Illustrative scenario

A multi-region energy group wants faster business responses while retaining necessary risk controls. This is an organisational-design illustration, not a client implementation case.

  1. 01

    Review investment and procurement cases to identify duplicate approvals and essential specialist checks.

  2. 02

    Differentiate authority and escalation by risk, financial scale and business maturity.

  3. 03

    Trial the model in selected regions, verifying role capability, information and oversight.

  4. 04

    Revise policies from observed issues before gradually integrating them into group management.

BOARDROOM QUESTIONS

Focus the discussion on these choices.

01Are decision rights assigned to roles with the necessary information and capability?

02Who owns cross-functional operating outcomes, and who provides specialist advice only?

03Do assessment methods for exploratory and mature businesses reflect their different tasks?

RESEARCH FOUNDATIONS

Research brought into
consulting practice.

We translate management research and technological advances into working methods for energy businesses. The frameworks below are ZHICE's synthesis of the research and industry questions.

Charles A. O’Reilly III、Michael L. Tushman / Academy of Management PerspectivesOrganizational Ambidexterity: Past, Present and Future · 2013

Application in the ZHICE approachDraws on organisational design for exploiting mature activities while exploring new businesses, distinguishing management approaches and arranging necessary coordination.

Scope and limitationsThe research discusses multiple approaches and their conditions of use; it does not imply that every firm should create a separate innovation organisation.

Read the original research
OUR PRACTICE

Explore the critical questions.

Each practice examines diagnosis, solution design, implementation and delivery requirements in detail.