This PPT slide, part of the 26-slide Organisation Design 101 - Best Practice PowerPoint presentation, outlines a structured approach to organizational design, emphasizing its alignment with strategic objectives. It presents a three-step process: developing strategy, designing vertical structures, and designing horizontal processes.
The first section, "Develop strategy," highlights the necessity of crafting a "winning strategy" that reflects market conditions and leverages existing or potential organizational capabilities. This strategy is typically articulated through an annual planning cycle in larger companies, ensuring that the organization is prepared to meet its goals effectively.
In the second step, "Design vertical structures," the focus shifts to analyzing the diversity within the organization. This involves evaluating whether to adopt a single or multiple product/service approach. Prioritizing design criteria is essential for determining how departments should be structured. Selecting the appropriate structure is crucial for facilitating effective communication and operational efficiency.
The final section, "Design horizontal processes," stresses the importance of modifying vertical structures to incorporate lateral or horizontal processes. This adjustment is aimed at enhancing information sharing and decision-making capabilities across the organization. The slide suggests that these horizontal processes are vital for ensuring that the organization can adapt and respond to changing conditions.
Overall, this slide serves as a practical guide for executives looking to align their organizational design with strategic goals. It underscores the interconnectedness of strategy and structure, providing a clear framework for effective organizational development. The tools mentioned, such as Business Definition and RAID, offer additional resources for implementation. Understanding this design process can help organizations achieve their vision more effectively.
This slide is part of the Organisation Design 101 - Best Practice PowerPoint presentation.
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