People design houses. They mark-out the plans for buildings, cars and jet engines. Their designs are guided by engineering realities or artistic preferences. Structures of institutions are also designed. Work is carried out within this structure.
Values guiding the Design of our Organizations
|Clarity of Accountability||Enables Action|
|Minimizing Cost||Fluid people|
|Defined Control||Serve Customers|
Organizational Design Beliefs
- All structural elements are designed to serve a purpose.
- The most efficient design is built around the material flow (product and information), generates the least cost and focuses accountabilities.
- Political motivations do exist and they can influence the design of structures.
- Designs have inherent cost structures that must be kept competitive.
- Structure follows flow.
- Structure reconciles needs of customers with needs of the business.
- Best structures facilitate flow rather than impose control.
Organizational Design Philosophy
Organization design is about serving the work, creating a clear identity for people and generating a cost structure that stays competitive.
To only add an organizational level to material flow when it is distinct and adds value.
To be accountable for delivering the results of work while owning the minimal assets required to do the work.
To have discreet bundles of work that appear logical in composition to the people doing the work.
To incorporate all support functions into the structure necessary to maintain flow without creating redundancies and underutilized people.
To create a shared service when demand within a structure doesn’t justify a dedicated response.
To have structures that can easily be matched with cost in a way that reduces uncontrolled and allocated costs.
To have jobs that can be easily matched to structure such that they are professionally enriching, offer growth potential, create a competitive advantage and facilitate customer responsiveness.