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 overarching strategy. It presents a three-step process: developing strategy, designing vertical structures, and designing horizontal processes. Each step includes specific actions and tools to facilitate effective implementation.

In the first section, "Develop strategy," the focus is on crafting a "winning strategy" that reflects current market conditions and leverages existing or potential organizational capabilities. This strategy is typically articulated through an annual planning cycle, highlighting the importance of a systematic approach in large companies.

The second section, "Design vertical structures," involves analyzing the organization’s diversity. It prompts consideration of whether to adopt a single or multiple product/service approach. Prioritizing key design criteria is crucial, as it influences how departments are structured. Selecting the appropriate structure is vital for ensuring that the organization can effectively support its strategic goals.

The final section, "Design horizontal processes," calls for modifications to the vertical structure to incorporate lateral processes. This integration is essential for fostering information sharing and enhancing decision-making capabilities across the organization.

The tools mentioned, such as Business Definition and a palette of typical organizational structures, serve as resources to guide executives through this design process. The slide effectively communicates that successful organizational design is not just about structure, but also about ensuring that processes facilitate strategic objectives. This insight is critical for executives looking to optimize their organizational frameworks.

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Organizational Design Organizational Structure