Aligning Organizational Design with Strategic Objectives PPT

This PPT slide, part of the 26-slide Organisation Design 101 - Best Practice PowerPoint presentation, outlines a structured approach to organizational design, emphasizing the necessity for alignment with strategic objectives. It is divided into 3 main components: developing strategy, designing vertical structures, and designing horizontal processes.

The first section, "Develop strategy," highlights the importance of formulating a "winning strategy" that is informed by market conditions and the organization's capabilities. This strategy is typically articulated during the annual strategy planning cycle in larger companies. The focus here is on high-level business design to ensure that the organization can effectively execute its strategy and achieve its overarching vision.

Next, the slide moves to "Design vertical structures." This part stresses the need to analyze the internal diversity of the organization, considering factors such as whether it offers single or multiple products or services. It encourages prioritizing key design criteria that will influence departmental structures and selecting the most suitable structure and number of departments based on this analysis.

The final section, "Design horizontal processes," addresses the integration of lateral processes into the vertical structure. This integration is crucial for fostering information sharing, enhancing decision-making capabilities, and ensuring flexibility for future modifications. The emphasis here is on creating a more interconnected organizational framework that supports agility and responsiveness.

Overall, the slide provides a clear roadmap for organizations looking to align their design processes with strategic goals. It underscores the importance of a thoughtful approach to both vertical and horizontal structures to drive effectiveness and adaptability.

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Organizational Design