Class 3 org design dev 2011 v lm-cdf
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Organizational Design & Organizational Design & DevelopmentDevelopment
Foundational ModelsFoundational Models&&
CultureCulture
February 8, 2011February 8, 2011
MGMT-4000MGMT-4000Linda Miklas, Christina FinegoldLinda Miklas, Christina Finegold
Harvard UniversityHarvard University
Center for Workplace Center for Workplace DevelopmentDevelopment
Creating the EnvironmentCreating the Environment
Trust earned one person at a time
Accountability for the right results
Opportunity for Growth & Impact
Center for Workplace Center for Workplace DevelopmentDevelopment
Three Types of TrustThree Types of Trust
Competence – “Trust of Capability”Competence – “Trust of Capability”
Contractual – “Trust of Character”Contractual – “Trust of Character”
Communication – “Trust of Disclosure”Communication – “Trust of Disclosure”
Iceberg ModelIceberg Model
What
How
Iceberg ModelIceberg Model
Skills
Knowledge
HayGroup= Achievement
PowerAffiliation
Butler = Passion
Connection Achievement
Power A Powerful New Model =
AcquireBond
ComprehendDefend
Inner Work Life = Creativity
ProductivityCommitmentCollegiality
Clarity - Communication - RigorClarity - Communication - Rigor
ModelingDecision-Making
Developing Talent
Achieving Results
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Understanding DesignUnderstanding Design
Are business units:Are business units: Structured around a clear and demonstrable Structured around a clear and demonstrable
value proposition?value proposition? Responsible, with authority, for developing and Responsible, with authority, for developing and
executing key components of strategy?executing key components of strategy? Authorized to make decisions affecting strategy?Authorized to make decisions affecting strategy? In control of resources required to execute In control of resources required to execute
strategy?strategy? Accountable for revenue, funding, profitability?Accountable for revenue, funding, profitability?
Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”
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Structural ImperativesStructural Imperatives
Source: Reframing Organizations: Artistry, Choice, and Leadership. Bolman, Lee G. and Deal, Terrence E., 2008, Jossey-Bass.
DimensionDimension Structural ImplicationsStructural Implications
Size and ageSize and age Complexity and formality increase with size and age.Complexity and formality increase with size and age.
Core processCore process Core processes or technologies must align with structure.Core processes or technologies must align with structure.
EnvironmentEnvironment Stable environment reward simpler structure.Stable environment reward simpler structure.
Strategy and goalsStrategy and goals Variation in clarity and consistency of goals requires appropriate Variation in clarity and consistency of goals requires appropriate structural adaptations.structural adaptations.
Information Information technologytechnology
Information technology permits flatter, more flexible, and more Information technology permits flatter, more flexible, and more decentralized structures.decentralized structures.
Nature of the Nature of the workforceworkforce
More educated and professional workers need and want greater More educated and professional workers need and want greater autonomy and discretion.autonomy and discretion.
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Organization Design CharacteristicsOrganization Design Characteristics(Boston Consulting Group)(Boston Consulting Group)
InteractionsInteractions Hybrid Hybrid Structures Structures
and and OverlaysOverlays
Performance Performance RewardsRewards
Open-Open-Source Source
ApproachesApproaches
Lean Lean Corporate Corporate
CenterCenter
Change Change ReadinessReadiness
Design should Design should facilitate facilitate people people working working togethertogether
Interactions Interactions should occur should occur across org across org boundaries.boundaries.
Design should Design should reflect reflect different different business business drivers across drivers across org:org: differences differences in span of in span of controlcontrol processes processes that can that can improve improve management management practicespractices
Design should Design should include include performance performance measurement measurement mechanisms mechanisms and programs and programs to reward to reward performance; performance; variable variable incentives.incentives.
Design can Design can integrate with integrate with customers and customers and suppliers. suppliers.
Design should Design should include a include a center that center that disseminates disseminates best practices, best practices, drives change drives change initiatives.initiatives.
Design should Design should institutionalize institutionalize capacity to flex capacity to flex and respond to and respond to environmental environmental changes.changes.
Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”
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Galbraith’s Star ModelGalbraith’s Star Model
Processes
People
Rewards
Structure
Strategy
Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”
1111
Five Basic Structure OptionsFive Basic Structure Options
Functional
GM
R & D Operations Marketing
Product
CEO
Electronics Medical Instruments Computers
Market
GM
Health Service Fin. Services Distribution
Geographical
GM
Northern Region Central Region Southern Region
Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”
Process
GM
New Product Dev. Order FulfillmentCustomerAcquisition
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Strategies for Five Structure OptionsStrategies for Five Structure Options
Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”
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ReferencesReferences
2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”; CLC6422289.Organizational Design”; CLC6422289.
A Survivor’s Guide to Organization Redesign, Boston Consulting Group, 2003. A Survivor’s Guide to Organization Redesign, Boston Consulting Group, 2003. www.hcg.com/impact_expertise/publications/files/Survivors_Guide_Organization_Redesign_Jan2003.pdf
The Balanced Scorecard. Kaplan, Robert S. and Norton, David P., 1996.The Balanced Scorecard. Kaplan, Robert S. and Norton, David P., 1996. Designing Your Organization: Using the STAR Model to Solve Five Critical Design Designing Your Organization: Using the STAR Model to Solve Five Critical Design
Challenges. Challenges. Kates, Amy and Galbraith, Jay.Kates, Amy and Galbraith, Jay. Do You Have a Well-Designed Organization? (Goold and Campbell’s Fit and Good Do You Have a Well-Designed Organization? (Goold and Campbell’s Fit and Good
Design Tests), Harvard Business Review, 2002.Design Tests), Harvard Business Review, 2002. Organizing for Agility: Creating Natural Business Units, Booz Allen Hamilton, 1999. Organizing for Agility: Creating Natural Business Units, Booz Allen Hamilton, 1999.
www.boozallen.com/publications/article/658369..
Reframing Organizations: Artistry, Choice, and Leadership. Bolman, Lee G. and Deal, Reframing Organizations: Artistry, Choice, and Leadership. Bolman, Lee G. and Deal, Terrence E., 2008, Jossey-Bass.Terrence E., 2008, Jossey-Bass.
Trust and Betrayal in the Workplace: Building Trust and Betrayal in the Workplace: Building Effective Relationships in Your Effective Relationships in Your Organization. Reina, Dennis S. and Michelle G., 2006, Berrett-Koehler Publishers.Organization. Reina, Dennis S. and Michelle G., 2006, Berrett-Koehler Publishers.