1. Designing Organizations
Nancy Truitt Pierce
TELA Program
May 2009
I am delighted that you have given me a podium a mic. and your attention to talk about a topic I find endlessly and addictively interesting.
Talking about Growing a Robust Business is my favorite topic in the whole world. In fact I'm completely ruined for almost any other conversation.
Especially where it relates to stages of growth and how to manage through it.
I plan to cover several aspects of the growth question today … Starting with the end in mind (as Stephen Covey suggests!)
Then I will spend some time on the Fantasy vs. the Reality of growth
Three of the ways organizations grow and the stages of growth businesses go thru. (There are a couple others, like stages of funding, that I won’t touch on)
By then some of you will be saying, yeah, yeah, yeah, but we do we DO about it. Which is the only question that really matters and THE POINT of all the rest. Because the KEY issue in growing organizations is figuring out what is the BEST thing to DO on any given day to move closer to the goal. It’s ultimately about TIME and how best to use it.
© Woods Creek Consulting, 2009

2. Designing Organizations
The STAR Model
Stage and Strategy
Pivotal Position Theory
Five Structures
Application of Various Structures
Pros and Cons of Each
I plan to cover several aspects of the growth question today....Starting with the end in mind (Covey would be so pleased!) we will briefly describe the goal of growing a robust business - to build an effective Organization. If we don't know where we are headed, the rest doesn't really matter, after all.
Next we will look at the Fantasy vs. Reality of growth
Then we will spend some time on the three ways that organizations grow and The stages of Growth businesses go through.
By then,some of you will be saying, "Yeah, yeah, yeah, enough of the theory, Nancy - what do we DO about it! Which is the only question that really matters and THE POINT of all the rest.
Because the KEY issue in a growing organization is figuring out what is the BEST thing to DO on any giving day to move closer to the goal. It's ultimately all about TIME and how best to use it. So we will end up with...What to watch for and WHAT TO DO! My hope is that you will leave this talk a little smarter and a little more armed for the journey you are on on.
NEXT SLIDE
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3. Star Model by Jay Galbraith
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Purpose of Structure
Structure is about the flow of information and learning
And the allocation of time, energy and resources (decisions) needed to achieve the strategy!
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Organize
When you have over 25 people (Scope)
Based on Strategy first
Each type is appropriate for Certain Situations
Each type has Limitations
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Strategy
What business are you in?
What is your strategy?
What are the keys to your success?
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Departmentalization
Function or Specialty
Product Line
Customer Segment
Geographical Area
Work Flow Process
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Examples
Function or Specialty – The classic organization
Product Line – Hewlett Packard (Printer Division)
Customer Segment – Boeing (Commercial, Military)
Geographical Area – FedEx (Regions)
Work Flow Process – Continental Mills (dry goods, frozen foods)
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Functional Structure
Pros
Transfer of Knowledge
Contacts with Peer Specialists
Greater level of Specialization
Cons
Doesn’t scale for additional product lines
Inhibits cross functional collaboration
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Product Structures
Pros
Compress Product Development Cycles
Create Diverse Product Strategies
Cons
Builds Turf Wars
Decreases Efficiencies in Resource Utilization
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Market Structures
Pros
Increase Market Knowledge (Segments)
Target Product Development
Cons
Builds Turf Wars
Decreases Efficiencies in Resource Utilization
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12. Geographical Structure
Pros
Proximity to Customers
Increased Cost Efficiency for Distribution
Local Knowledge
Cons
Creates Communication Challenges
Decreases Efficiencies in Resource Utilization
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13. Departmentalization for IT
Application Development
Telecom
Desk Top
Help Desk
Data Management
Outsource Management
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IT Organizations
Ways to Organize the IT Department
Functionally
By business unit
By geo
Centralized
De-Centralized
Matrixed / hybrid
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15. © Woods Creek Consulting, 2009
Summary
There is no perfect organization
No matter what you do, there will be problems
Some work better for your stage, strategy and business
Choose the best and back fill the problems
I plan to cover several aspects of the growth question today....Starting with the end in mind (Covey would be so pleased!) we will briefly describe the goal of growing a robust business - to build an effective Organization. If we don't know where we are headed, the rest doesn't really matter, after all.
Next we will look at the Fantasy vs. Reality of growth
Then we will spend some time on the three ways that organizations grow and The stages of Growth businesses go through.
By then,some of you will be saying, "Yeah, yeah, yeah, enough of the theory, Nancy - what do we DO about it! Which is the only question that really matters and THE POINT of all the rest.
Because the KEY issue in a growing organization is figuring out what is the BEST thing to DO on any giving day to move closer to the goal. It's ultimately all about TIME and how best to use it. So we will end up with...What to watch for and WHAT TO DO! My hope is that you will leave this talk a little smarter and a little more armed for the journey you are on on.
NEXT SLIDE
© Woods Creek Consulting, 2009

16. © Woods Creek Consulting, 2009
Group Exercise
Share your Org Chart:
For the company
Titles in the boxes (no names necessary)
For the IT Org
Titles in the boxes and where you are
What are the pros and cons of each?
What issues are you trying to resolve?
What org changes MAY solve those?
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The Mentors
Our Questions
Their Career Path
Insights and tips to get and keep a CIO job
How CIO is different from other levels
How they spend their time
Be thinking of other questions you want them to answer
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18. © Woods Creek Consulting, 2009
Homework for TELA
Prep for Next Week
Come up with a real business problem
TELA group votes on them
Pick the top three to work on
Lunch with your team mates
Fill out the interview form
Develop your Personal Plan
Based on the 360
Complete the Evaluation for today
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