Key Elements for Evaluating Organizational Structures


This PPT slide, part of the 70-slide Organizational Design Framework PowerPoint presentation, outlines the critical elements involved in evaluating organizational structures, emphasizing their foundational role in enterprise functionality. It identifies eight key components that influence how organizations operate and make decisions.

The first element, Organizational Layers, highlights the importance of hierarchy in shaping communication efficiency and agility. A flatter structure may enhance responsiveness, while a deeper hierarchy could slow decision-making. Next, Reporting Relationships are crucial for understanding accountability and supervision, affecting how tasks are delegated and coordinated.

Departmentalization examines how an organization divides itself into distinct units, impacting specialization and collaboration. The Centralization vs. Decentralization element reveals where decision-making authority lies, which can either streamline processes or create bottlenecks depending on the distribution of power.

Geography & Competition looks at how external factors influence organizational structure, providing insights into local market needs and competitive positioning. Performance Metrics focus on the indicators that gauge success across different units, aligning operations with strategic goals.

Lastly, Workflow & Processes delve into how tasks move through the organization, identifying potential inefficiencies and areas for improvement. The slide concludes with a reminder that an effective organizational structure is not merely about hierarchy, but about optimizing these various elements to enhance overall performance and adaptability in a changing market.



This slide is part of the Organizational Design Framework PowerPoint presentation.

This framework is created by former McKinsey, BCG, Deloitte, EY, and Capgemini consultants. It provides a robust, modern approach to Organizational Design used by global consulting firms.

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