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Class 3 org design dev 2011 v lm-cdf

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  • 1. Organizational Design & Development Foundational Models & Culture February 8, 2011 MGMT-4000 Linda Miklas, Christina Finegold Harvard University
  • 2. Creating the Environment Center for Workplace Development Trust earned one person at a time Accountability for the right results Opportunity for Growth & Impact
  • 3. Three Types of Trust
    • Competence – “Trust of Capability”
    • Contractual – “Trust of Character”
    • Communication – “Trust of Disclosure”
    Center for Workplace Development
  • 4. Iceberg Model What How
  • 5. Iceberg Model Skills Knowledge HayGroup= Achievement Power Affiliation Butler = Passion Connection Achievement Power A Powerful New Model = Acquire Bond Comprehend Defend Inner Work Life = Creativity Productivity Commitment Collegiality
  • 6. Clarity - Communication - Rigor Modeling Decision-Making Developing Talent Achieving Results
  • 7. Understanding Design
    • Are business units:
    • Structured around a clear and demonstrable value proposition?
    • Responsible, with authority, for developing and executing key components of strategy?
    • Authorized to make decisions affecting strategy?
    • In control of resources required to execute strategy?
    • Accountable for revenue, funding, profitability?
    Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”
  • 8. Structural Imperatives Source: Reframing Organizations: Artistry, Choice, and Leadership. Bolman, Lee G. and Deal, Terrence E., 2008, Jossey-Bass. Dimension Structural Implications Size and age Complexity and formality increase with size and age. Core process Core processes or technologies must align with structure. Environment Stable environment reward simpler structure. Strategy and goals Variation in clarity and consistency of goals requires appropriate structural adaptations. Information technology Information technology permits flatter, more flexible, and more decentralized structures. Nature of the workforce More educated and professional workers need and want greater autonomy and discretion.
  • 9. Organization Design Characteristics (Boston Consulting Group) Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design” Interactions Hybrid Structures and Overlays Performance Rewards Open-Source Approaches Lean Corporate Center Change Readiness Design should facilitate people working together Interactions should occur across org boundaries.
    • Design should reflect different business drivers across org:
    • differences in span of control
    • processes that can improve management practices
    Design should include performance measurement mechanisms and programs to reward performance; variable incentives. Design can integrate with customers and suppliers. Design should include a center that disseminates best practices, drives change initiatives. Design should institutionalize capacity to flex and respond to environmental changes.
  • 10. Galbraith’s Star Model Processes People Rewards Structure Strategy Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”
  • 11. Five Basic Structure Options Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design” 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 Process GM New Product Dev. Order Fulfillment Customer Acquisition
  • 12. Strategies for Five Structure Options Source: 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”
  • 13. References
    • 2009 Corporate Executive Board, Corporate Leadership Council’s “Frameworks for Organizational Design”; CLC6422289.
    • 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.
    • Designing Your Organization: Using the STAR Model to Solve Five Critical Design Challenges. Kates, Amy and Galbraith, Jay.
    • Do You Have a Well-Designed Organization? (Goold and Campbell’s Fit and Good Design Tests), Harvard Business Review, 2002.
    • 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, Terrence E., 2008, Jossey-Bass.
    • Trust and Betrayal in the Workplace: Building Effective Relationships in Your Organization. Reina, Dennis S. and Michelle G., 2006, Berrett-Koehler Publishers.

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