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Organization as Strategic Design

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Presentation on theme: "Organization as Strategic Design"— Presentation transcript:

1 Organization as Strategic Design
View of the organization: input-throughput-output system Key concepts: information, systems (information systems, human resource management systems, etc,) Key processes: grouping (differentiation), linking (integration), and alignment View of the environment: opportunities & threats, resources Role of the leader: “organizational architect”, strategist Stimuli for change: lack of internal alignment, lack of “fit” between organization & environment Barriers to change: inadequate analysis, inadequate information

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3 Strategic Design - KEY CONCEPTS
Grouping Linking Alignment (internal) Fit (external - with environment)

4 Key Grouping Criteria • Activity (function) • Product •
Market/customer (geography, segment) Process (business processes - especially in support functions) Matrix

5 Key Linking Mechanisms
Formal reporting structures Liaison roles Integrator roles Permanent cross-unit groups Temporary cross-unit groups Info. technology systems Planning processes

6 Key Alignment Mechanisms
Performance metrics Rewards and incentives Resource allocation Human Resource Development (recruitment, training, tracking, planning) Informal systems and processes

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