This product (Organisation Design 101 - Best Practice) is a 26-slide PPT PowerPoint presentation slide deck (PPT), which you can download immediately upon purchase.
The objectives of this document are:
• Explain organisation design in relation to the other attributes of an organisation, such as its people and strategy
• Outline the key success factors in designing an organisation structure
• Explain the high level process and supporting tools
This PPT delves into the eight critical attributes of an organisation, including shared values, vision, strategy, core capabilities, structure, systems, and style. It provides a comprehensive framework for understanding how these elements interplay to create a cohesive organisational design. The insights offered are grounded in practical examples and actionable steps, making it an indispensable resource for executives aiming to optimise their organisational structure.
The design process section breaks down the steps necessary to develop a winning strategy, design vertical structures, and implement horizontal processes. This ensures that the organisational design is aligned with the overarching strategy. The document also includes tools like the Business Definition and RAID analysis, which are essential for identifying and developing the necessary horizontal processes within an organisation.
The document also explores various structure types, such as functional, product, market, geographical, and process-based structures. Each type is discussed in terms of its overview and selection criteria, providing a clear understanding of when and how to implement each structure. This level of detail ensures that executives can make informed decisions about the most appropriate organisational structure for their specific needs.
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MARCUS OVERVIEW
This synopsis was written by Marcus [?] based on the analysis of the full 26-slide presentation.
Executive Summary
This presentation, "Organisation Design 101 - Best Practice," delivers insights into effective organization design principles, aligning with the quality standards of McKinsey, Bain, or BCG (consulting-grade; not affiliated). It provides a structured approach for corporate executives and consultants to develop, implement, and optimize organizational structures that align with strategic goals. Users will gain the ability to articulate key success factors, design vertical and horizontal processes, and utilize supporting tools for effective implementation.
Who This Is For and When to Use
• Corporate executives overseeing organizational strategy and design
• Integration leaders managing structural changes within divisions or groups
• Consultants advising on organizational effectiveness and design
• HR leaders focused on aligning people and processes with strategic objectives
Best-fit moments to use this deck:
• During strategic planning sessions to align organizational structure with business goals
• When initiating a redesign of existing organizational frameworks
• In workshops aimed at enhancing cross-functional collaboration and decision-making processes
Learning Objectives
• Define organization design in relation to people, strategy, and structure
• Build a comprehensive organizational structure that supports strategic objectives
• Establish key success factors for effective organization design
• Analyze business diversity to inform structural decisions
• Design vertical structures that facilitate accountability and decision-making
• Implement horizontal processes that enhance flexibility and responsiveness
Primary Topics Covered
• Objectives - This section outlines the goals of the presentation, focusing on organization design and its relationship with other organizational attributes.
• Attributes of an Organisation - Discusses shared values, vision, strategy, structure, people, systems, and style as foundational elements of an organization.
• Organisational Structure - Explains how an organization’s structure aligns its attributes to execute strategy and achieve vision.
• Key Success Factors - Identifies critical elements for successful organization design, emphasizing alignment with strategy.
• Design Process - Details the steps for developing a strategy and designing both vertical and horizontal structures.
• Business Definition - Explores how to assess business diversity and define the appropriate organizational structure.
Deliverables, Templates, and Tools
• Business Definition template for assessing organizational capabilities
• RAID analysis framework for decision-making roles and responsibilities
• Organizational structure palate for visualizing different structural types
• Vertical structure design criteria checklist for prioritizing design elements
• Horizontal process mapping tools for enhancing cross-functional collaboration
• Implementation roadmap for tracking design changes and outcomes
Slide Highlights
• Overview of organizational attributes and their interconnections
• Key success factors for effective organization design
• Business diversity analysis matrix for determining structural needs
• RAID analysis grid illustrating decision-making roles
• Organizational structure palate showcasing various design types
Potential Workshop Agenda
Introduction to Organization Design (30 minutes)
• Overview of objectives and key concepts
• Discussion on the importance of aligning design with strategy
Vertical and Horizontal Structures (60 minutes)
• Breakout sessions to design vertical structures
• Group discussions on horizontal processes and their implementation
Key Success Factors and Tools (45 minutes)
• Presentation on critical success factors
• Hands-on activity using RAID analysis and business definition templates
Customization Guidance
• Tailor the organizational structure palate to reflect specific client needs and contexts
• Adjust the RAID analysis framework to align with existing decision-making processes
• Modify design criteria based on the unique attributes of the organization
Secondary Topics Covered
• The relationship between organizational culture and design
• Strategies for effective communication during redesign processes
• The impact of technology on organizational structure
• Best practices for managing change during implementation
FAQ What is organization design?
Organization design is the process of aligning an organization’s structure with its strategy and objectives to enhance effectiveness and efficiency.
How do I determine the right structure for my organization?
Assess the diversity of your business, including customer segments, product lines, and market needs, to inform the selection of an appropriate organizational structure.
What are the key success factors in organization design?
Key success factors include alignment with strategy, clarity in decision-making processes, and effective communication of design changes.
What tools can assist in the organization design process?
Tools such as RAID analysis, business definition templates, and organizational structure palates can facilitate effective design and implementation.
How can I ensure successful implementation of a new organizational design?
Communicate the reasons for the redesign, provide adequate support and resources, and allow time for the new structure to be fully implemented and tested.
What are vertical and horizontal structures in organization design?
Vertical structures refer to the hierarchy and reporting relationships within an organization, while horizontal structures facilitate cross-functional collaboration and decision-making.
How does business diversity impact organization design?
Understanding business diversity helps determine whether to consolidate or separate functions based on shared customers, costs, and competencies.
What is the RAID analysis framework?
RAID analysis is a tool used to clarify roles and responsibilities in decision-making processes, ensuring accountability and effective collaboration.
Glossary
• Organization Design - The process of structuring an organization to align with its strategy and objectives.
• Vertical Structure - The hierarchy of reporting relationships within an organization.
• Horizontal Processes - Processes that occur across different functions to facilitate collaboration and decision-making.
• RAID Analysis - A framework for defining roles in decision-making processes: Recommend, Agree, Input, Decide.
• Business Diversity - The variety of products, services, and customer segments within an organization.
• Key Success Factors - Critical elements that contribute to the successful design and implementation of organizational structures.
• Organizational Structure Palate - A visual representation of various organizational structures for design reference.
• Decision-Making Processes - Procedures through which decisions are made within an organization.
• Shared Values - The core beliefs and principles that guide an organization’s culture and behavior.
• Strategic Alignment - The process of ensuring that organizational structure and processes support strategic goals.
• Implementation Roadmap - A plan outlining the steps and timelines for implementing organizational design changes.
• Cross-Functional Collaboration - Cooperation between different departments or functions within an organization.
This PPT slide outlines various organizational structure types that can be adopted based on specific design criteria. It categorizes these structures into 5 distinct types: Functional, Product, Market, Geographical, and Process. Each structure type is briefly described, highlighting its primary characteristics and the contexts in which it is most effective.
The Functional structure is centered around the activities or functions within the organization, such as sales or R&D. This type is typically suited for smaller organizations or those with a single product line. The Product structure, on the other hand, organizes the company by product lines and is designed for efficiency at scale. It emphasizes the importance of product-focused strategies, especially in environments with multiple products targeting different customer segments.
The Market structure is organized around specific markets or customer segments, allowing for rapid adaptation to changing market dynamics. This structure is particularly beneficial for organizations that need to respond quickly to customer demands. The Geographical structure is relevant for companies expanding into new territories, organizing operations based on geographical areas to leverage local advantages.
Lastly, the Process structure is described as the newest organizational design, focusing on workflows and processes rather than traditional functional hierarchies. It aims to streamline operations and reduce cycle times, making it an attractive option for organizations looking to innovate.
Overall, the slide serves as a foundational overview for executives considering how to align their organizational structure with strategic goals. Understanding these types can guide decision-making in designing an effective organizational framework.
An organizational structure is pivotal for aligning various attributes within a company to effectively execute its strategy and realize its vision. This PPT slide illustrates how the organizational structure serves as a central coordinating mechanism that integrates key elements such as people, core capabilities, systems, shared values, and style. Each of these components plays a critical role in ensuring that the organization operates cohesively.
The diagram emphasizes that the organizational structure does not merely exist in isolation; it coordinates the interaction among these elements. For instance, the people within the organization must align with the core capabilities and systems in place. This alignment is essential for the execution of the overarching strategy. The structure also reflects the shared values and style of the organization, indicating that these cultural aspects are integral to how the organization functions.
The arrows labeled "coordinates" and "reflects" suggest a dynamic relationship between the organizational structure and these elements. The structure is both a facilitator and a mirror of the company's ethos and operational approach. This dual role underscores the importance of carefully designing the organizational structure to ensure it supports the strategic goals of the organization.
For potential customers, this slide serves as a reminder that a well-defined organizational structure is not just a framework, but a strategic asset. It can drive performance and foster an environment where all parts of the organization work in harmony towards common objectives. Understanding this relationship can guide leaders in making informed decisions about organizational design and alignment.
This PPT slide titled "Business Definition" outlines a framework for determining how many distinct businesses exist within an organization. It emphasizes the importance of evaluating shared attributes among customers, costs, competitors, and competencies. The left side of the slide presents a scenario where businesses share the same customers, cost structures, competitors, and competencies, leading to the conclusion that they can be classified as "One business."
Conversely, the right side illustrates a scenario where businesses differ in these aspects, suggesting they should be treated as "Separate businesses." The slide effectively communicates that the degree of shared characteristics directly influences the classification of business segments.
The section titled "Why is business definition important?" highlights critical insights. It indicates that understanding whether segments are more profitably operated as a single entity or as separate businesses is essential. This distinction can significantly impact strategic decisions, particularly in contexts like mergers, acquisitions, or market entry strategies.
The slide also points out that defining business segments helps identify what drives profitability within an industry. This understanding serves as a foundation for strategic analysis and informed decision-making.
Overall, the slide presents a structured approach to business classification, offering valuable insights for executives considering organizational design and strategic alignment. It encourages a thorough evaluation of shared characteristics to optimize operational efficiency and profitability.
This PPT slide 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 PPT slide presents a framework for defining business units based on cost sharing and customer sharing, which are identified as key factors in determining the optimal number of businesses within an organization. The matrix is divided into 4 quadrants, each representing different strategic positions regarding cost sharing and market differentiation.
In the upper left quadrant, it indicates a scenario where a single business can achieve differentiation or occupy a niche position. This suggests that high customer sharing can lead to a unique market offering. The adjacent quadrant emphasizes the potential for cost leadership through separate businesses, indicating that distinct entities may be better suited for cost efficiency.
The lower half of the matrix introduces the concept of separate businesses, which can either operate independently or have the potential for bundling. This implies a strategy where businesses can leverage their distinct offerings while still benefiting from some level of shared resources or customer bases.
The right side of the matrix introduces the idea of substitution, where a single business can offer alternative products or services that may fulfill similar customer needs. This positioning highlights the importance of understanding customer preferences and market dynamics.
An exercise is included, prompting participants to categorize various businesses within the matrix. This practical application encourages critical thinking about where specific products, such as household items and personal care products, fit within the defined strategic framework. Overall, the slide serves as a tool for executives to evaluate their business structures and make informed decisions about organizational design.
The RAID analysis framework delineates the roles of individuals involved in critical decision-making processes. It consists of 4 primary categories: Recommend, Agree, Input, and Decide, each with distinct responsibilities and implications for management structure.
In the "Recommend" section, the emphasis is on the individual or group responsible for making proposals. This role is pivotal, as it accounts for approximately 80% of the work involved in the decision-making process. Proposals are typically approved entirely or in part by the decision-maker, highlighting the importance of this role in shaping outcomes.
The "Agree" role involves individuals who have the capacity to sign off on proposals, but only intervene in exceptional circumstances. Their power is limited, as they can veto a proposal,, but such actions require resolution by the primary decision-maker. This indicates a structured approach to accountability in the decision-making hierarchy.
The "Input" category signifies those who provide consultation on decisions. They are not obligated to have their advice followed, but are expected to challenge and drive excellence in the process. This role is crucial for ensuring diverse perspectives are considered, fostering a more robust decision-making environment.
Finally, the "Decide" role is held by the formal decision-maker, who has the ultimate authority and the power to resolve conflicts among other contributors. This position is characterized by significant time commitments and the necessity for direct reports to manage staff effectively.
Overall, the RAID analysis framework provides a clear structure for understanding roles in decision-making, which can enhance organizational efficiency and clarity in responsibilities.
This PPT slide 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.
Source: Best Practices in Organizational Design PowerPoint Slides: Organisation Design 101 - Best Practice PowerPoint (PPT) Presentation Slide Deck, P-Square Partners
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