Framework for Developing Organizational Structures PPT

This PPT slide, part of the 42-slide Organizational Design for High Performance PowerPoint presentation, outlines a structured approach to developing organizational structures through 5 key steps. It begins with the design of the Profit and Loss (P&L) structure, emphasizing the importance of defining business units. This initial step sets the foundation for how functions and activities are organized within the company.

Next, the slide focuses on defining the scope of functions and activities. It distinguishes between support and business functions, highlighting the need to clarify what activities are necessary for each function. This clarity is crucial for ensuring that resources are allocated effectively and that each function can operate efficiently.

The third step involves determining the degree of centralization versus decentralization. This is illustrated through a matrix that considers scalability and customization needs. Organizations must assess which activities can be centralized for efficiency and which should remain decentralized to cater to local market demands.

Following this, the slide addresses the need to define clustering logic. This involves deciding how to group functions at different levels—global, regional, or local. The clustering logic is vital for aligning organizational structure with strategic objectives and operational needs.

Finally, the slide concludes with deriving functional reporting structures. This step ensures that there is a clear hierarchy and reporting relationships, which is essential for accountability and effective communication within the organization.

Overall, this slide provides a comprehensive framework for executives looking to optimize their organizational design. It emphasizes the importance of clarity in roles, the balance between centralization and decentralization, and the need for a well-defined reporting structure to enhance performance.

This slide is part of the Organizational Design for High Performance PowerPoint presentation.

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Organizational Design Organizational Structure Profit and Loss Effective Communication

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