Chapter 3: Organisational Analysis

Organisations don’t create value—people do. And people are guided by structures, cultures, and leadership systems

We published some time back that we are working on a Playbook for executing Organisational Due Diligence. We publish first part of the list of topics/ ideas playbook will cover in our post.

Here is the third  chapter of the playbook.

Chapter 3: Organisational Analysis

Organisations don’t create value—people do. And people are guided by structures, cultures, and leadership systems that shape how they show up and perform every day. In this chapter, we move beyond operating metrics and into the heart of organisational effectiveness.

Whether you’re preparing for an acquisition, a carve-out, or a post-deal transformation, this phase of due diligence offers insight into the internal DNA of the organisation—its clarity of purpose, depth of talent, resilience of leadership, and functional coherence.

3.1 Mission, Vision, and Values

A high-performing organisation is built around a clear purpose. But too often, these foundational elements are either missing, misaligned, or misunderstood by the very people expected to execute them.

✅ Checklist: Evaluating Mission, Vision & Values

• ☐ Are the mission and vision clearly articulated and widely understood?

• ☐ Do stated values show up in decision-making and behaviour?

• ☐ Is there alignment between long-term vision and actual business strategy?

• ☐ Are employees able to relate their daily work back to the company’s purpose?

• ☐ Are the mission, vision, and values consistent across teams, regions, and leadership levels?

Insights Sought:
Gaps here often indicate cultural disconnects, poor communication flow, or a leadership team not yet aligned around “why we exist.”

3.2 Organisational Structure and Design

Structure reveals logic. It shows us how decisions are made, how communication flows, and whether the business is designed for stability or agility. During ODD, we assess whether the current organisational structure supports the strategic direction—or holds it back.

🗂 Organisational Structure Map

• Visualise key departments, reporting relationships, spans of control, and decision-making bottlenecks.

• Highlight “orphan” functions or roles with unclear reporting.

• Identify redundancies or fragmentation in duplicated functions across regions or business units.

📎 [Insert Org Chart Template – Hierarchical and Matrix Options]

Key Questions:

• Is the org designed for speed or control?

• Are structure and strategy reinforcing each other?

• How scalable is the current model under growth or integration?

3.3 Leadership and Management Assessment

Leadership is the single most influential variable in organisational performance—and the hardest to fix post-acquisition. The goal here is to understand the leadership bench: who they are, how they lead, and how they are perceived.

🔄 360-Degree Feedback Framework

• Collect structured input from peers, reports, and managers.

• Evaluate:

  • Decision-making capability

  • Communication effectiveness

  • Change agility

  • Cultural influence

  • Talent development

📎 [Insert 360-Degree Survey Template]
📎 [Insert Sample Leadership Scorecard]

Strategic Insight:
Look for mismatches between formal authority and informal influence. A strong integration or transformation requires not just good leaders—but the right leaders.

3.4 Workforce Analysis

A company is only as future-ready as its people. This section maps current workforce capabilities to future strategic needs.

🧭 Skills & Capability Matrix

• Categorise roles and people by:

  • Core skills

  • Technical proficiency

  • Business acumen

  • Adaptability

• Flag critical gaps against future state requirements.

📎 [Insert Visual Skills Matrix Template]

Useful Diagnostic Areas:

• Which capabilities are over-represented or missing?

• What roles are most vulnerable to turnover or disruption?

• Is the current talent base future-fit?

3.5 Talent and Succession Assessment

Talent depth is a strategic asset—but only if there is continuity. In this section, we assess not just who’s on the bench, but whether the organisation knows what it would do if key players left tomorrow.

🗺 Succession Planning Grid

• Map key leadership and technical roles.

• Plot readiness of identified successors.

• Identify single points of failure in mission-critical positions.

For example use  9-Box Succession Planning Grid.

Key Metrics:

• % of key roles with identified successors

• Readiness distribution (Ready Now / Ready in 1-2 Years / Future Potential)

• External vs internal pipeline strength

Conclusion : Turning Insight into Action

Organisational analysis isn’t just about documentation—it’s about diagnosing whether the people, processes, and power structures can deliver the business strategy. Done well, this chapter sets the stage for value creation by showing where to invest, where to de-risk, and where to intervene.

In M&A, culture and capability mismatches often derail integrations—not financials. That makes this chapter arguably the most underestimated, yet mission-critical, part of any due diligence playbook.

(If you want to see the structure of the Playbook check our previous post on the topic)