Organisational Design vs Organisational Development: Why Local Authorities Must Understand Both

In the ever-evolving landscape of local government, transformation is no longer a choice it’s a necessity. Whether driven by financial pressures, policy shifts, digital innovation, or changing community needs, councils across the UK are being called to rethink how they operate and deliver services. Yet, successful transformation requires more than just structural change; it demands a deep understanding of both organisational design and organisational development.

These two disciplines are often used interchangeably, but they serve distinct purposes.

Organisational design is about shaping the formal architecture of an organisation its structures, roles, systems, and workflows to align with strategic goals. It’s the blueprint that determines how work gets done. Organisational development, meanwhile, focuses on the people within that structure. It’s a continuous process aimed at improving organisational health and effectiveness through leadership development, culture change, and behavioural science.

To put it simply:

• Design is building the car to meet a specific purpose.

• Development is maintaining and tuning the car so it performs optimally over time.

For local authorities undergoing transformation, understanding the difference and the synergy between these disciplines is critical. This blog explores how organisational design and development intersect, why both are essential during periods of change, and what councils can learn from real-world case studies across the UK.

Where They Overlap

While organisational design and organisational development are distinct disciplines, they are deeply interconnected and in practice, inseparable during periods of transformation.

• Design sets the stage for development. A well-designed organisation provides the clarity, structure, and alignment needed for people to perform effectively. It creates the conditions for development to flourish clear roles, purposeful workflows, and coherent decision-making frameworks.

• Development sustains design. Even the most elegant organisational structures can falter without ongoing investment in culture, leadership, and capability. Poor communication, disengaged staff, or resistance to change can undermine the best-laid plans. Organisational development ensures that the human side of change is nurtured, enabling the structure to function as intended.

In essence, design is about what the organisation looks like; development is about how it lives and breathes. Councils that treat these as separate endeavours risk misalignment and missed opportunities. Those that integrate both are more likely to build resilient, adaptive organisations capable of delivering lasting change.

Why This Matters for Local Authorities

Local authorities are facing unprecedented challenges from rising demand and constrained budgets to shifting policy landscapes and evolving community expectations. In this context, understanding and applying both organisational design and organisational development is not just helpful it’s essential for delivering sustainable transformation.

1. Transformation Requires Structural and Cultural Change

Across the UK, councils are undergoing significant change. Whether it’s the adoption of digital technologies, the redesign of frontline services, or large-scale structural reorganisation (such as the move to unitary authorities), transformation is multifaceted. It’s not enough to redraw organisational charts or restructure departments.

• Organisational design enables councils to realign services, governance frameworks, and decision-making processes to reflect new priorities and operating models.

• Organisational development ensures that the people within those structures are supported, engaged, and equipped to deliver change. It builds leadership capacity, fosters resilience, and embeds new ways of working.

Without both, transformation efforts risk being superficial or short-lived.

2. Improving Outcomes and Efficiency

Design and development, when integrated, help councils deliver better outcomes with greater efficiency. A well-designed organisation reduces duplication, clarifies accountability, and streamlines service delivery. Development ensures that staff are motivated, collaborative, and capable of adapting to new demands. Together, they:

• Break down silos and improve cross-departmental collaboration.

• Foster a culture of innovation, learning, and continuous improvement.

• Enable smarter use of resources and more responsive public services.

3. Supporting Staff Through Change

Change can be unsettling. Staff may feel uncertain, overwhelmed, or resistant especially when transformation affects roles, responsibilities, or long-standing practices. Organisational development plays a critical role in managing this human side of change.

It helps by:

• Building emotional intelligence and change leadership skills in managers.

• Providing coaching, mentoring, and training to support staff through transitions.

• Embedding reflective practice and continuous learning to build adaptability.

Councils that invest in development create psychologically safe environments where staff feel valued, heard, and empowered to contribute to change.

4. Meeting Strategic Goals

Ultimately, transformation is about delivering on strategic priorities whether that’s improving outcomes for vulnerable residents, achieving net zero, or redesigning services around user needs. Organisational design ensures that the structure supports these goals. Organisational development ensures that the workforce is aligned, capable, and motivated to deliver them.

Councils that integrate both disciplines are better positioned to:

• Respond to complex challenges with agility.

• Build inclusive, high-performing teams.

• Deliver lasting impact for communities.

The Stats Behind the Shift

The scale and urgency of transformation in UK local government is reflected in the data. Councils are not just tweaking systems they’re undergoing fundamental change. These statistics highlight why understanding organisational design and development is so critical right now.

1. 32 Councils Received Transformation Support in 2024–25

In the 2024–25 financial year, 32 UK councils received direct transformation support from Local Partnerships and the Local Government Association (LGA). This support focused on co-designed change, strengthening governance, and building internal capability to sustain improvements. The emphasis was not just on structural redesign, but on embedding development practices that enable councils to adapt and thrive.

2. Wrexham Council Targeting £25 Million in Savings

Wrexham County Borough Council is a standout example. Its transformation programme is targeting £25 million in savings, achieved through better governance, service redesign, and improved decision-making across priority areas such as social care, environmental services, and asset management. This illustrates how design and development, when applied together, can deliver both financial and operational benefits.

3. 41% of England’s Population Affected by Reorganisation

The current wave of local government reorganisation (LGR) is the largest since the mid-1990s. It will affect around 41% of England’s population, as two-tier systems are replaced with unitary authorities and smaller unitaries are redrawn. This scale of change demands not only structural redesign but also a robust development strategy to support staff, maintain service continuity, and build new organisational cultures.

Case Studies

1. London Borough of Hillingdon – DMA as a Dual Tool for Design and Development

Context

The London Borough of Hillingdon adopted the Decision Making Accountability (DMA) model not merely as a structural review tool, but as a strategic lever for both organisational design and organisational development. Initially seeking a robust framework to challenge traditional assumptions about local authority structures, Hillingdon’s HR and business improvement teams trained 12 staff in the DMA methodology, embedding it across the council. DMA was not used as a one-off intervention it became a continuous process for rethinking roles, responsibilities, and organisational layers. This dual application allowed Hillingdon to simultaneously reshape its operating model and invest in its people.

Design Impact

One of the most significant applications of DMA was in social care services, where a full review was conducted from front-line staff to director level. The analysis revealed overlapping responsibilities between team managers and deputy team managers, prompting a bold redesign:

• The deputy team manager role was removed, eliminating redundancy.

• A new advanced practitioner role was introduced, creating a specialist pathway that enhanced decision-making and professional development.

This structural change streamlined workflows, clarified accountability, and improved service responsiveness.

Development Impact

Beyond structure, DMA had a profound impact on organisational culture and leadership:

• It created a shared language across the council, enabling more consistent conversations about role purpose, accountability, and value.

• Staff and managers reported greater clarity and collaboration, with improved relationships between social workers and their line managers.

• The process supported succession planning, identifying individuals operating above their grade and flagging them for career progression.

• It encouraged reflective practice, with staff actively engaging in discussions about their roles and how they contribute to strategic goals.

DMA also challenged long-standing assumptions about what constitutes a “strategic” role, prompting a shift towards operational effectiveness and value creation.

Why It Matters

Hillingdon’s experience demonstrates how organisational design and development can and should be integrated. By using DMA as both a structural and developmental tool, the council:

• Built a more agile and responsive organisation.

• Fostered a culture of continuous improvement and leadership growth.

• Delivered tangible improvements in service delivery and staff engagement.

Importantly, the approach was welcomed across the council, with senior managers embracing the challenge and councillors kept informed throughout. Hillingdon’s case shows that transformation is most effective when it reshapes both the architecture of the organisation and the mindset of its people.

2. Suffolk County Council – Vision-Led Transformation

Context

Suffolk County Council embarked on a strategic transformation journey in partnership with Local Partnerships, aiming to future-proof its operating model in the face of rising demand, financial pressures, and evolving community needs. Rather than reacting to external pressures with piecemeal changes, Suffolk chose to take a vision-led approach, co-designing a transformation programme that aligned with its long-term ambitions and values.

The council’s leadership recognised that transformation needed to be holistic addressing not just structures and systems, but also culture, capability, and ways of working. This led to the development of a set of Operating Model Principles, which now guide decision-making across the organisation.

Design Impact

At the heart of Suffolk’s design work was the creation of a prioritisation matrix and a comprehensive transformation plan. These tools helped the council:

• Align services with strategic goals and community outcomes.

• Identify areas of duplication and inefficiency.

• Restructure its operating model to enable better integration across departments.

The design process was inclusive, involving workshops with the Corporate Leadership Team to explore what an ideal future state would look like. Themes such as “everyone understands their role as part of one council” and “change is joined up with consistent delivery methods” emerged, shaping the principles that now underpin Suffolk’s transformation efforts.

Development Impact

Organisational development was embedded throughout the programme not as an afterthought, but as a core enabler of change. Suffolk invested in:

• Leadership development, ensuring senior managers were equipped to lead transformation with clarity and confidence.

• Stakeholder engagement, fostering collective ownership of the change process.

• Capability building, with a focus on continuous improvement, reflective practice, and resilience.

The council also ran targeted resilience workshops for staff, recognising the emotional and psychological demands of transformation. These sessions, delivered in partnership with external experts, helped staff manage stress, build energy, and stay engaged during periods of uncertainty.

Why It Matters

Suffolk’s approach demonstrates that organisational design must be underpinned by development efforts to be truly effective. By aligning structure with strategy and investing in people, the council has created a transformation programme that is not only technically sound but also culturally sustainable. Key lessons from Suffolk include:

• Transformation is most successful when it is co-designed with those who will deliver it.

• Operating model principles provide a north star for decision-making and change.

• Development builds the internal capability needed to sustain transformation beyond the initial programme.

Suffolk’s case is a powerful example of how local authorities can lead change with purpose, clarity, and compassion.

3. Essex County Council – Whole Council Transformation

Context

Faced with a projected £158 million budget gap by 2026/27, Essex County Council launched a bold and ambitious Whole Council Transformation (WCT) programme a seven-year strategic initiative designed to reshape how the council operates, delivers services, and engages with residents. The programme is underpinned by the council’s long-term vision: to be one of the most forward-looking, effective, and financially sustainable councils in the country by 2030.

WCT is not a standalone project it’s a comprehensive journey that integrates structural reform, cultural renewal, and workforce development. It builds on lessons from previous transformation phases, which delivered over £680 million in savings between 2008 and 2017, but with a renewed focus on non-financial outcomes, such as service quality, staff wellbeing, and resident satisfaction.

Design Impact

At the heart of Essex’s transformation is a new operating model, designed to:

• Improve service delivery through innovation and integration.

• Reduce long-term costs by streamlining processes and eliminating duplication.

• Align structural changes with the council’s strategic framework, Everyone’s Essex, which sets out 20 commitments across four priority areas: economy, environment, children and families, and health and wellbeing.

The council adopted a transition state model, guiding each phase of change with clear objectives, governance, and performance measures. Structural reforms were mapped against strategic drivers to ensure coherence and impact.

Development Impact

Essex recognised that structural change alone would not be enough. The WCT programme embedded organisational development throughout, focusing on:

• Culture change: Creating a “One Council” mindset, where collaboration, innovation, and shared purpose are central.

• Leadership alignment: Equipping senior leaders and elected members to make strategic decisions and champion transformation.

• Workforce capability: Delivering structured programmes, workshops, and learning opportunities to build resilience, adaptability, and digital skills.

The council’s People Plan 2021–25 supported this effort, with targeted investment in wellbeing, diversity, and leadership development. Staff were actively engaged in shaping the transformation journey, with feedback loops, discovery phases, and cross-functional working groups ensuring that change was co-owned and inclusive.

Why It Matters

Essex’s transformation journey illustrates a fundamental truth: designing new structures without developing the people within them is insufficient. The success of WCT lies in its integrated approach where organisational design and development are treated as two sides of the same coin.

Key takeaways from Essex include:

• Transformation must be strategically anchored in a long-term vision.

• Structural reform should be matched by investment in culture and capability.

• Councils must create the conditions for success including leadership buy-in, staff engagement, and a mature approach to benefits realisation.

Essex’s Whole Council Transformation is a model for how local authorities can lead change with ambition, clarity, and compassion building not just better services, but a stronger, more resilient organisation.

Comparing the Case Studies: Three Models of Integrated Transformation

Council	Transformation Context	Design Focus	Development Focus	Key Learning
Hillingdon	Used the Decision Making Accountability (DMA) model to challenge assumptions and streamline social care structures.	Removed redundant roles and introduced advanced practitioner roles to improve decision-making and clarity.	Created a shared language across the council, improved collaboration, and supported succession planning.	Design and development can be embedded in a single methodology (DMA), enabling simultaneous structural and cultural change.
Suffolk	Partnered with Local Partnerships to co-design a transformation programme aligned with strategic vision.	Developed a prioritisation matrix and operating model principles to reduce duplication and align services.	Invested in leadership development, stakeholder engagement, and resilience workshops to build internal capability.	Vision-led transformation is most effective when staff are co-creators of change and development is embedded from the outset.
Essex	Launched a seven-year Whole Council Transformation (WCT) to address a £158m budget gap and deliver long-term strategic goals.	Created a new operating model aligned with the “Everyone’s Essex” strategy, focusing on integration and efficiency.	Embedded culture change, leadership alignment, and workforce capability building through structured programmes.	Large-scale transformation requires a mature, long-term approach where design and development are fully integrated and strategically anchored.

Common Threads Across All Three Councils

• Strategic Alignment: Each council ensured that organisational design was directly tied to strategic priorities whether through a vision (Suffolk), a strategy (Essex), or a methodology (Hillingdon).

• People-Centred Development: All three recognised that transformation cannot succeed without investing in people through leadership development, cultural change, and capability building.

• Integrated Approach: Rather than treating design and development as separate phases, each council embedded both disciplines throughout the transformation journey.

Distinctive Strengths

• Hillingdon stands out for its use of a single tool (DMA) to drive both design and development, making change tangible and accessible across the organisation.

• Suffolk exemplifies co-designed transformation, with strong emphasis on internal ownership and resilience.

• Essex demonstrates how long-term, whole-system transformation can be delivered with clarity, ambition, and compassion.

Final Thought

For local authorities, understanding the difference and more importantly, the synergy between organisational design and organisational development is far more than an academic exercise. It is a strategic imperative. Transformation is not simply about redrawing organisational charts or introducing new systems. It’s about creating environments where people can thrive, collaborate, and deliver meaningful outcomes for communities. Design provides the structure; development brings it to life. Councils that embrace both disciplines are better equipped to:

• Navigate complexity and uncertainty.

• Build resilient, high-performing teams.

• Deliver services that are not only efficient but also empathetic and inclusive.

As the case studies from Hillingdon, Suffolk, and Essex show, the most successful transformations are those that integrate design and development from the outset. They align structure with strategy, and culture with capability. They don’t just change how the organisation looks they change how it feels, how it thinks, and how it leads. In a sector where the stakes are high and the pace of change is accelerating, this dual focus is not optional. It’s the foundation for a future-ready local government.