Organization theory and design 04 2013

organization @TC 2013

4.ฐานแนวคิดการออกแบบองค์การ


หัวข้อบรรยาย/กรณีศึกษา 1 แนวคิดทฤษฎีองค์การ 2 โครงสร้างและการออกแบบองค์การ Focus on task performance and structure Focus on motivation Focus on adjustments to the external environment 3 หลักการการออกแบบองค์กรที่มีประสิทธิภาพ 4 Fundamentals of Organization Designพื้นฐานแนวคิดการออกแบบโครงสร้างองค์การ C 1 : Harvard Business Case / NYPD New 5 Designing Around the Customer C 2 : Harvard Business Case /Transformation at Ernst & Young United Kingdom


The Star ModelTM: A Framework for Decision Making

•  Strategy •  Organizational Capabilities: Translating Strategy into Design Criteria

Structure •  Processes •  Rewards •  People














Design Principles

•  Requisite Complexity •  Complementary Sets of Choices •  Coherence, Not Uniformity •  Active Leadership •  Reconfigurability •  Evolve, Do Not Install •  Start with the Lightest Coordinating Mechanism •  Make Interfaces Clear •  Organize Rather Than Reorganize


What was it all about?

Configuring:

ü Structure ü Processes

ü Reward systems ü People practices & policies

TO SUPPORT THE STRATEGY

Source: Galbraith, J & al: « Designing Dynamic Organization » Chapter 1 ‘Getting started’


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Adapted from Designing Organizations by Jay R. Galbraith, p. 12 (Josey-Bass, Inc., San Francisco, CA 1995)

Realized Design Benefits Effective Structural Change Silo Integration No Organization Disconnect Strategic Staffing Reduced Role & Decision Conflict Increased Management Skills Efficient Span-of-control Management Consensus HR Partnership

Strategy

Need for Design Barrier Issues

Strategic Success Factors Strategic Design Criteria

People Practice

Staffing and Selection Performance Feedback

Learning and Development Workforce Planning

Reward System Goals and Results

Values and Behaviors Individuals and Teams

Metrics

Structure

Organization Disconnect Roles and responsibilities Efficient Span-of-control New Structural Elements

Lateral Process Integration Integrative Roles

Teams Networks

Matrix Structures

NGSB Methodology – Our Star Model

organization @TC 2013 19

NORTHROP GRUMMAN PRIVATE/PROPRIETARY LEVEL I

One-Page Consensus from Completed Strategy Workshop

Success Strategies (Tool 3) Strategic Org Capabilities (Tool 4) Design Changes (Tool 4)

--------------------------------------- ---------------------------------------

Technical success Project success

--------------------------------------- --------------------------------------- --------------------------------------- --------------------------------------- ---------------------------------------

---------------------------------------------------- -----------------------------------------------------

§ Improve accuracy, process, training

§ Prioritize all work

------------------------------------------------- ------------------------------------------------- ------------------------------------------------- ------------------------------------------------- -------------------------------------------------

1. ----------------------------------------------- 2. ---------------------------------------------- 3. Continuous improvement group 4. Project management team 5. ----------------------------------------------- 6. ----------------------------------------------- 7. ----------------------------------------------- 8. ----------------------------------------------- 9. -----------------------------------------------

What We Learned


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Adapted from Organization Design, The Collaborative Approach by Naomi Stanford, p.3 (Elsevier Butterworth-Heinemann, Burlington, MA, 2005).

Methodology Phases Strategy

Workshop → Design Workshop →

Implementation Workshop

Purpose ▪ Design need and changes ▪ Issue resolution & detailed design ▪ Assess and implement design

Questions

▪ Why change? ▪ Are we ready? ▪ What capabilities are lacking? ▪ What change is needed?

▪ Issues with current design? ▪ Does design address all criteria/issues? ▪ Are key processes integrated? ▪ Do current practices support?

▪ Is the design improved? ▪ Is the implementation ready? ▪ Will employees transition smoothly? • Has the design been effective?

Tools

Identifying What Needs to Change

1. Deciding What Works Well 2. Deciding What Will Succeed 3. Determining Org Capabilities 4. Determining Design Changes

Improving What Is Inefficient or Ineffective

5. Improving structural connections 6. Improving roles and responsibilities 7. Improving responsibility levels 8. Improving span-of-control 9. Detailed structural changes 10. Improving lateral process integration 11. Validating reward & people practices

Validating Design & Optimizing Implementation 12. Design/implementation check 13. Design effectiveness 14. Role transition

NGSB Methodology – Workshop Overview


Four Phases of Organization Design I. Determining the Design Framework

Leadership Team

Leader and Executive Team

Steering Committee and Work Groups

Whole Organization

Current State Assessment

II. Designing the Organization

III. Developing the Details

IV. Implementing the New Design

Structure Processes and Lateral Capability Reward Systems People

What is the gap between where we are and where we want to go?

Strategy

What organizational capabilities do we need to deliver on the strategy?

What are the details? How do the pieces all work together?

How are we going to make the transition?

What structure and organizational role meet our strategic design criteria?

How will work get coordinated and integrated across business units?

How do we measure and reward performance at an individual, a team, and an organizational level?

How do we select and deploy people into new roles, manage their performance, and support their development?

Source: Jay R. Galbraith, Designing Organizations: An Executive Briefing on Strategy, Structure, and Process (San Francisco: Jossey-Bass, 1995).


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STRATEGY Vision & Mission

Direction Competitive advantage

STRUCTURE Power & Authority

Reporting Relationship Oganizational roles

PROCESSES AND LATERAL CAPABILITY

Networks, Processes Teams, Integrative Roles

Matrix structure

REWARD SYSTEM Goals, Scorecards

Values and Behaviors Compensation|Reward

PEOPLES PRACTICES Staffing and Selection Performance feedback

Learning and Development

Source: Galbraith, J & al: « Designing Dynamic Organization » Chapter 1 ‘Getting started’

Organization design – star model




Organizational Design Variables

From Galbraith and Kazanjian “Strategy Implementation: Structure, Systems and Process”


Currere Adaptation of Galbraith Star Model

Strategy

WORK PROCESSES q  Describes the key tasks & activities of an organization

Assessment Focus ü  Are there work processes that have become more (or less) important

in the current environment & given the business strategy (e.g., where customer emphasis, technology, or business requirements are changing)?

ü  Which major work processes currently work well (are well integrated), & which need to be improved? Where does coordination/ integration break down?

ü  Do support processes meet the requirements of the businesses?

STRUCTURE: Assessment Focus ü  Does the current structure leverage

talent (board and staff) and optimize partnerships?

ü  Does the current structure facilitate or impede effective management of functions, programs, customers, and partners?

ü  Does the current structure impede or facilitate work effectiveness/mission accomplishment?

ü  Are there the right kinds of connections across units and/or with partners to be able to effectively & efficiently make decisions, resolve issues & integrate work? Where does this break down?

ü  Are the various parts of the organization well linked through the information technology system?

MANAGEMENT PRACTICES: Assessment Focus ü  How is the direction set & cascaded through the organization? How well does it work?

How well does it help integrate the activities of the organization? (e.g., strategy, goals & objectives, budgets, metrics, reviews, etc.)

ü  Are decision-making processes, authority, & responsibility clearly defined & well understood? How do they break down? Where is there a lack of common understanding that may get in the way of well integrated and/or efficient work?

ü  Does the right information get where it needs to be for effective performance? Does information get shared across the organization? Where does this break down?

ü  Are there processes in place for learning across the organization & improving work & business processes? Where does this break down?

REWARDS / INCENTIVES: Assessment Focus

ü  Does the reward system motivate & reward required individual & team performance?

ü  Does it motivate the needed cooperation among individuals & across various teams & units?

ü  Does the performance assessment process focus on the key individual & collective performances?

ü  Are rewards flexible enough for diversity of work – yet foster the needed inter-group collaboration?

PEOPLE / TALENT: Assessment Focus ü  Does the organization have the competencies / talents

required? What are the competencies / talents required? Have HR practices kept pace?

ü  Is there a good process for developing competencies & talent, for making sure people have meaningful job experiences & career paths?

ü  How do the established HR practices facilitate and/or impede collaboration & integration?

ü  Is the organization developing the needed leadership capability and succession at all levels?

Structure

Management Practices Rewards

Work Processes

People Culture

Assessing Organization Design