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CORPORATE LEADERSHIP COUNCIL
www.clc.executiveboard.com
CLC6422289
Frameworks for Organizational DesignExecutive Brief
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FRAMEWORKS FOR ORGANIZATIONAL DESIGN EXECUTIVE BRIEF
2 CLC6422289 | 2009 Corporate Executive Board. All Rights Reserved.
TABLE OF CONTENTS
This report five leading frameworks companies can use when approaching organizational design. Although there is no universal or ideal organizational
structure, the most notable common thread connecting these top approaches is organizational strategy. Each framework emphasizes that considerations of
the organizations strategy should be the key determinant of how the business will be structured. Different strategies lead to different organizations; the
chosen design best meets the criteria derived from an organizations unique strategy.
Developing Optimal Organizational Design: End-to-End Process
Jay Galbraiths Star Model ........................................................................................................................................................................Page 3-4 Boston Consulting Groups Building Blocks Framework.........................................................................................................................Page 5-6
Determining the Degree of Centralization
Balanced Scorecard: Making Tradeoffs between Centralization and Decentralization ...........................................................................Page 7
Booz Allen Hamiltons Natural Business Units: Identifying Opportunities for Decentralization ..........................................................Page 8-9
Evaluating Current Design to Identify Opportunities for Improvement
Goold and Campbells Fit and Good Design Tests ............................................................................................................................Page 10
Appendix: Additional Resources ...............................................................................................................................................................Page 11
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FRAMEWORKS FOR ORGANIZATIONAL DESIGN EXECUTIVE BRIEF
11 CLC6422289 | 2009 Corporate Executive Board. All Rights Reserved.
APPENDIX:ADDITIONAL RESOURCES
This appendix provides additional resources and information for each framework presented in this report.
JAY GALBRAITHS STAR MODEL
Designing Your Organization: Using the STAR Model to Solve Five Critical Design Challenges, Amy Kates and Jay Galbraith, 2007This workbook is a hands-on guide that provides managers with a set of practical tools to use when making organization design decisions. Based on Galbraiths Star Model, the book covers thefundamentals of organization design and offers frameworks and tools to help leaders execute their strategy.
Designing the Customer-Centric Organization, Center for Effective Organizations, 2006
http://www.marshall.usc.edu/assets/005/5484.pdfThis teleconference deck, written by Galbraith, provides examples of how organizations can use the star model to pursue customer-centric and solutions-oriented strategies.
BOSTON CONSULTING GROUPS BUILDING BLOCKS FRAMEWORK
A Survivors Guide to Organization Redesign, Boston Consulting Group, 2003http://www.bcg.com/impact_expertise/publications/files/Survivors_Guide_Organization_Redesign_Jan2003.pdfThis link provides access to the full-text article.
BALANCED SCORECARD
The Balanced Scorecard, Robert S. Kaplan and David P. Norton, 1996This book provides greater detail on and further implications for business inherent to the balanced scorecard methodology.
NATURAL BUSINESS UNITS
Organizing for Agility: Creating Natural Business Units, Booz Allen Hamilton, 1999http://www.boozallen.com/publications/article/658369This link provides access to the full-text article.
GOOLD AND CAMPBELLS FITAND GOOD DESIGNTESTS
Do You Have a Well-Designed Organization?, Harvard Business Review, 2002(Due to copyright restrictions, we cannot provide a copy of this article. This document can be obtained from Harvard Business Publishing.)This article includes examples and details regarding how organizations can conduct each test outlined in this brief.
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