10 Principles of Organization Design

A global electronics manufacturer seemed to live in a perpetual state of re-organization. Introducing a new line of communication devices for the Asian market required reorienting its sales, marketing, and support functions. Migrating to cloud-based business applications called for changes to the IT organization. Altogether, it had reorganized six times in 10 years. Suddenly, however, the company found itself facing a different challenge. This situation is becoming more typical. Today, the average tenure for the CEO of a global company is about five years. The chief executive has to get the reorg right the first time; he or she won’t get a second chance. Although every company is different, and there is no set formula for determining the appropriate design for your organization, we have identified 10 guiding principles that apply to every company. 1. For many business leaders, answering those questions means going beyond your comfort zone. 2. 3. 4. 5. 6. 7. 8. 9. 10. Conclusion Gary L.

What is Organizational Design? Organizational design is a step-by-step methodology which identifies dysfunctional aspects of work flow, procedures, structures and systems, realigns them to fit current business realities/goals and then develops plans to implement the new changes. The process focuses on improving both the technical and people side of the business. For most companies, the design process leads to a more effective organization design, significantly improved results (profitability, customer service, internal operations), and employees who are empowered and committed to the business. Excellent customer serviceIncreased profitabilityReduced operating costsImproved efficiency and cycle timeA culture of committed and engaged employeesA clear strategy for managing and growing your business By design we’re talking about the integration of people with core business processes, technology and systems. Methodology Charter the design process Assess the current state of the business Design the new organization Example:

The McKinsey 7S Framework - Strategy Skills from MindTools.com Ensuring That All Parts of Your Organization Work in Harmony Learn how to use the 7-S Framework, with James Manktelow and Amy Carlson. How do you go about analyzing how well your organization is positioned to achieve its intended objective? This is a question that has been asked for many years, and there are many different answers. While some models of organizational effectiveness go in and out of fashion, one that has persisted is the McKinsey 7-S framework. The 7-S model can be used in a wide variety of situations where an alignment perspective is useful, for example, to help you: Improve the performance of a company. The McKinsey 7-S model can be applied to elements of a team or a project as well. The Seven Elements The McKinsey 7-S model involves seven interdependent factors which are categorized as either "hard" or "soft" elements: "Soft" elements, on the other hand, can be more difficult to describe, and are less tangible and more influenced by culture. How to Use the Model Strategy:

The Greiner Curve - Strategy Tools training from MindTools.com Understanding the Crises That Come With Growth © VeerAlliance Fast-growing companies can often be chaotic places to work. As workloads increase exponentially, approaches which have worked well in the past start failing. Teams and people get overwhelmed with work. While growth is fun when things are going well, when things go wrong, this chaos can be intensely stressful. The "Greiner Curve" is a useful way of thinking about the crises that organizations experience as they grow. By understanding it, you can quickly understand the root cause of many of the problems you're likely to experience in a fast growing business. Understanding the Theory Greiner's Growth Model describes phases that organizations go through as they grow. Reprinted by permission of Harvard Business Review. Dictionaries define the word "crisis" as a "turning point", but for many of us it has a negative meaning to do with panic. Larry E. Phase 1: Growth Through Creativity Phase 2: Growth Through Direction Tip: Using the Tool