Framework for Optimizing Functional Structures PPT
This PPT slide, part of the 26-slide Organisation Design 101 - Best Practice PowerPoint presentation, titled "Principles of Functional Alignment" presents a framework for understanding how organizations can optimize their functional structures. It emphasizes that each organization is unique, and any theoretical application must consider its specific context. The slide is divided into a matrix that categorizes functions based on 2 axes: the potential to combine functions and the skill competency of those functions.
The vertical axis ranges from "High" to "Low" regarding the potential for process sharing and value chain sharing. The horizontal axis similarly ranges from "High" to "Low" in terms of skill competency. This creates 4 quadrants that guide decision-making:
1. High Potential to Combine Functions with High Skill Competency: This area suggests that organizations can benefit significantly from integrating functions, leading to enhanced customer service and shared best practices.
2. High Potential to Combine Functions with Low Skill Competency: Here, organizations may still find value in combining functions,, but they must be cautious about the skill gaps that could hinder effectiveness.
3. Maintain Separate Functions with High Skill Competency: This quadrant indicates that certain functions should remain distinct due to their specialized skills, which may not translate well into a combined structure.
4. Maintain Separate Functions with Low Skill Competency: In this case, the organization may benefit from keeping functions separate, as combining them could lead to inefficiencies.
The slide concludes with key insights on maximizing value through alignment, highlighting the importance of customer focus, internal best practice sharing, and cost management. It also notes that these strategies must operate within risk constraints, particularly regarding the segregation of responsibilities. This framework provides a strategic lens for executives to evaluate their organizational design choices.
This slide is part of the Organisation Design 101 - Best Practice PowerPoint presentation.
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Organizational Design Customer Service Cost Management Value Chain Best Practices
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