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Designing Your Organization

A practical guide arguing that different business strategies require deliberately different organizational designs, and showing how to align structure, processes, rewards, and people to build the capabilities needed to execute five common complex strategies.

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What it’s about

Building on the Star Model developed over thirty years by Jay Galbraith, this book equips leaders and organization design practitioners to solve the five most vexing design challenges facing modern firms: organizing around customers, operating across borders, making a matrix work, resolving the centralization-decentralization dilemma, and organizing for innovation. Rather than offering fads or one-size-fits-all templates, the authors ground every recommendation in contingency and complementary-systems theory: strategy dictates the organizational capabilities a firm must excel at, and those capabilities become the criteria for choosing among complementary sets of structures, processes, metrics, rewards, and people practices. With rich company examples (Cemex, IBM, Procter & Gamble, MeadWestvaco, Northwest Guaranty), assessment tools, and clear step-wise reasoning, the book teaches leaders to manage complexity deliberately, use lateral connections as strategic levers, and treat organization design as an ongoing process rather than a periodic reorganization event.

The through-line

Who it’s for
A business leader or organization design/HR practitioner who wants to build an organization capable of executing a complex, third-generation strategy and gaining competitive advantage.
The problem
Their current organization is a barrier rather than an enabler to executing complex strategies involving customers, geographies, matrices, scale, and innovation. They feel overwhelmed by organizational complexity, frustrated by silos and politics, and uncertain whether to centralize, matrix, or reorganize.
The plan
  1. Articulate strategy and translate it into no more than five differentiating organizational capabilities as design criteria.
  2. Diagnose which of the five challenges you face and how far along the relevant spectrum your strategy requires you to be.
  3. Choose complementary structures, processes, lateral connections, rewards, and people practices aligned to those capabilities.
  4. Build lateral capability by evolving from networks to teams to integrative roles to matrix, using the lightest touch needed.
  5. Treat the change as a project with a decision framework, goals, milestones, transition management, and participative change management.
The payoff
An organization that is an enabler, not a barrier, so employees can easily make the right decisions and focus energy on customers and innovation. · The ability to reconfigure quickly around opportunities and threats, gaining competitive advantage over slower rivals. · Successful execution of complex strategies—customer solutions, global coordination, matrix integration, balanced centralization, and organic growth.

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