Review of Linking Strategy to Structure: The Power of Systematic Organization Design

Review of Linking Strategy to Structure: The Power of Systematic Organization Design

Introduction

The reviewed paper explores a comprehensive and yet flexible model for designing and launching new organization in the context of the process paradigm of organizational design. The Organization Design Model utilizes a four-phase framework that is 1. determining the design framework, 2. designing the organization, 3. developing the details, and 4. implementing the new design.

Literature review

Organization design is used to implement strategy and determines organization success. Designing organizational structures can be a complex and demanding task, one that can be greatly assisted by the use of carefully developed models. In terms of author????s viewpoint, for ensuring long-term success, organization design requires a clear understanding of organization strategy. This is supported by lots discussion. It is recognized that a good fit between strategy and organizational design creates a competitive advantage for an organization (Galbraith et al. 1993; Galbraith 1994; Tushman et al. 1997:583). However, in reality strategy is often made within the current structure of an organization, so that current design constraints puts limits on strategies. (Richard L. Daft 2007). If business strategy was planed carefully and thoroughly at the beginning of structure design or restructure, organization design can be a powerful competitive advantage, with organizations creating designs that effectively arrange and align their capacity to deliver industry-leading results.

Methodology

To illustrate the power and flexibility of the model, the author selected an application concerning an Information Technology function within a global consumer products company. This case involves the redesign of an existing organization, but all phase and steps were applied to some degree, providing a good example of the Model. In this scenario, the organization was in crisis and in need of a complete redesign. Beginning with Phase 1, define the business strategy, determine the capabilities required, assess current state capabilities gaps, and define general design criteria. At the Phase 2, define processes and practices, define structure, align talent and align performance systems. In the third Phase, integrate the details of work process, identify inhibitors and facilities, develop change plan and establish