Organizational
Design Project –
Team 9
1911307 Apaka Pavan
2011053 Prajwal R
2011033 Monalisa Mallick
2011007 Swati Bajpai
2011061 Pavan Kumar Siripurapu
2011060 Nihal A Singh
03 01 02
Hierarchical Structure & Org Organizationa
About JPMC l Purpose
Configuration
Agenda
04 05 06
Organization Strategy Organization Environment Organization Structure
07 08 09
Organization Organizational Innovation & Organization
Culture Technology Challenges
2
Page 2 EY LLP
About EY – A Global Firm with extensive pan India and Global footprint
► People who demonstrate integrity, respect and
teaming At EY, people are committed to helping our people, our
► People with energy, enthusiasm, and the What EY clients and our wider communities achieve their
Who they are courage to stands for potential;
lead It’s how they make a difference.
► People who build relationships based on doing the
right thing
30+ US $Billion 270,000+ people 750+ 150 countries 1 unwavering
Turnover# offices commitment
EY has been ranked as the # 1 Brand among the Big Four in India for the fourth
successive edition of the Global Brand Survey*
India presence Ranked as #1* brand in India for fourth successive editions of the biennial
► Over 18,700* people in EY India and 22000 in Global Brand Survey 2017
GDS
► 11 cities in India: Ahmedabad, Bangalore,
Chandigarh, Chennai, Hyderabad, Jamshedpur, EY has been named a global leader for Innovation Consulting Services, ahead of all
Kochi, Kolkata, Mumbai, NCR (New Delhi + consulting service providers, by Forrester Research, Q4, 2018
Gurgaon + Noida), Pune
► 2 cities in Bangladesh : Chittagong, Dhaka
* Source: Global Brand Survey, conducted by Ipsos, an independent research agency
Page 3
Hierarchical Structure & Organizational Configuration (Mintzberg’s)
16 Associate Senior Senior Top
Analyst Consultant Manager Director Partner
Consultant Consultant Manager Leadership
Organizational Configuration : Mintzberg’s Five Basic Parts
► Service Line Heads ► Includes partners who act as
liaison between the top
► Managing Country Partners
management and the on-
► Geographical Region Heads ground consultants
► CXO’s
Top Management Middle Management
Tech Support Tech Core Admin Support
► Business Development ► Includes everyone in the ► HR
hierarchy responsible for on ► Finance & Accounts
► Branding & Communication ground execution
► Backend IT Support
► Security & Housekeeping
Page 4 EY LLP ► General Admin & General Works
Organizational Purpose
Competitive Advantage
Cutting edge technological solutions
leveraging upcoming technologies. Low
cost strategy to compete with big 3
consulting firms
Core Competence
Unwavering commitment and a Operating Goals-1
myriad of services ranging from Internal target to win repeat business from
audit, tax, transactions clients. EY has decided to pursue only big-ticket
advisory and business clients
consulting.
Mission Operating Goals-2
Mandatory training hours
To Build a Better Working
compliance for employees for
World by ensuring high quality
them to gain relevant skills
services being provided to the
client
CRITICAL SUCCESS FACTORS
Page 5 EY LLP
Organizational Strategy
VISION 2020 : Reach Revenue of $50 Billion+
Different competitive Doesn’t believe in focussing
strategies for different on a particular market
segment/ service offering
service lines
Encourages Creativity Always seeks new
Promotes Innovation
more than efficiency opportunities
Follows mechanistic Innovation on the
approach with big clients periphery
As per Miles & Snow’s strategy topology, EY acts like Analyzer
Page 6 EY LLP
Organizational Environment
Economic General
Industry
Sector Environmen International
Condition t
Government
Task Human
Resource Low Uncertainty Low-Moderate Uncertainty
Environmen Sector (Stable & Simple) (Stable & Complex)
t Environmental
Uncertainty
Market High-Moderate Uncertainty High Uncertainty
Sector (Unstable & Simple) (Unstable & Complex)
Page 7 EY LLP
Matrix Organizational Structure
Sharing of Resources
Country Managing Often people in EY work on
Partner engagements from different
industry segments and hence
sharing of resources across
Industry Transactio industry segments is important
Assurance Tax Consulting
Segments n
Advisory
AMI Interdependence Required
As EY operates in the complex-
unstable environment, the
degree of interdependence
CHS required is very high
TMT
Dual Knowledge Requirement
It is a pre-requisite for
employees to have both in
GPS depth service line and industry
knowledge to be able to serve
their clients better
Page 8 EY LLP
S.W.O.T
Analysis
Gaps in the product range sold by EY
Over 150,000 highly trained and skilled
Unable to handle challenges due to new entrants
New revenue systems-generates good returns
in the market
Good track record of building new products Though EY invests highly on R&D, but it’s still
It has a very strong brand portfolio below other fastest growing players.
Investment in training and sales teams Comparatively more expenditure than it’s
Huge distribution network of EY competitors
Good brand equity among potential customers Profitability ratio and Net Contribution - below
A dedicated CRM- high level of customer satisfaction industry average
Companies setting up their own research
centres
Strengths Weaknesses
Opportunities Threats
New sales channel in the online mode
A number of lawsuits filed against EY
Core competencies can aid in success of similar
Unstable supply of innovative products
product strategy
New technologies developed by the
Chance to enter new emerging market after
competitors
government free trade agreement
Profitability has been stable over the years,
Possibility of investing in new product
thus increasing market competition
categories with stable free cash flow
Shift in demand of profitable products
Opportunity to try out different
value
pricing
Currency fluctuations around the world
strategy with the onset of new
The increase of raw-material usage
Page 9
technologies EY LLP
Organisation Culture
Highly diverse and
collaborative
environment allows
talented individuals to
work across the globe
Huge resource is EY organises Spotlight
invested in training and and Kudos to recognise
development of and facilitate working if
employees the employees regularly
Off-sites are arranged
Adaptability culture of annually to improve
EY allows it’s employees team bonding & better
a flexibility and change understanding of
to meet the needs of teammates capabilities
customers and concerns
Page 10 EY LLP
Organizational Innovation & technology
AI
Organic Structure to drive EY Catalyst
innovation and exploration of
new ideas
Areas Machine
RPA in Accounting
RP
of focus Learning
A
Mechanistic Structure for Asterisk
routine implementation of Teams
Data
innovations Analytics
• Started an internal innovation ecosystem in 2015 with a team of five in Silicon Valley
Creating • By 2018, the team expanded to over 70 innovation leaders representing different sectors, regions, service lines
Departments
• On March 28, 2017 EY had launched a global network of innovation centers known as "EY Wavespace”
• EY Wavespace designs immersive programs to bring people together and provide them with the right mindset and
Innovation
collaborative tools to find new solutions quickly
Units
• EY is working with technological start-ups and universities and research labs to think on new ways of working
• EY's has made thirteen strategic alliances in the fields of IoT, Supply Chain & strategy
Building
Relationships & • Recently, EY announced an alliance with UiPath to drive the hyper-automation in its business
Strategic
alliances
Page 11 EY LLP
Organization Challenges
• EY has a high attrition rate of 17% to 18% for the past several years
• High attrition rates result in the loss of a talented pool and increase the risk of poaching
• Gardening leave costs will increase with a higher attrition rate
High Attrition
Rates
• EY's is focusing "Strategic Hiring and Positioning" to tackle the challenge
• Hiring candidates who fit the EY's culture along with EY's beliefs and Values is the key
• EY is also providing targeted support to the employees to reduce attrition rates
• EY is holding 18.7% market share in professional services space as of December 2019
• EY’s vision 2020 of enhancing revenue by US$50B+ is not realized
• Collaboration across firms and advent of the technology increased the competition
Low Market
share
• EY is leveraging its innovation and technological expertise to further pursue cost leadership
• It is exercising its cost leadership on the mid-sized and small companies, which are price-sensitive
Page 12 EY LLP
References
We interviewed the following people from EY for gaining detailed and comprehensive insights about the firm:
Arpan Khurdelia, Manager – Technology Innovation, Business Consulting
Karthick Sundaram, Manager – Suppy Chain & Operations, Business Consulting
Vikram Verma – Associate Director, HR
Secondary references
1 Facts and Figures - EY Global review. (n.d.). Retrieved September 18, 2020, from [Link]
and-figures
2 Home: Building a better working world: EY – India. (n.d.). Retrieved September 18, 2020, from [Link]
3 Simplifying your corporate structure. (n.d.). Retrieved September 18, 2020, from [Link]
transactions/simplifying-corporate-structure
4 Understanding the theory and design of organizations by Richard. L. Daft and Nishant Uppal
5 Results from Fern Fort University extensive research
6 EY wavespace™. (n.d.). Retrieved September 18, 2020, from [Link]
Page 13 EY LLP
THANK YOU !
“It is not the strongest of the species that survives, nor the most intelligent that survives. It is the one that is the
most adaptable to change."
— Charles Darwin
