Organization Design

An effective organization design enables employees to best deploy their effort and judgment to ensure that existing strategies are implemented and that new strategies are created. Organization design must facilitate the deployment of resources and the building of complementary accountabilities throughout the organization in order to generate long-lasting performance and efficiency.

Approaches organization redesign in three ways:
  • Defining the business model and value drivers that provide competitive advantage.
  • Designing the elements of organization models to maximize management effectiveness, cooperation, and individual employee engagement. These elements include designing the role of the center, establishing accountabilities and decision rights, and creating individual and team goals.
  • Ensuring that individual accountabilities collectively help to achieve both corporate performance and employee satisfaction. People perform the best when they are fulfilling their business goals and achieving personal satisfaction at work.

The past decade inaugurated a new era in the globalization of the world economy. Globalization is no longer an option; it is an imperative. Executives everywhere must wrestle with the strategic and operational implications of managing longer and more complex supply chains that loop across continents and time zones. They must structure and manage vastly more complex organizations and networks of partners adapted for a global world.

Businesses confront new competitors - often with lower structural costs - not only in unfamiliar markets on the far side of the globe, but also, increasingly, in their own home markets. Businesses must determine which assets and processes are best for which locations, all in the context of rapidly evolving competitive advantage.
The challenges and risks are tremendous. But the opportunities are limitless in the new era of globality, which will see companies competing for everything with everyone from everywhere.