4 Common Organizational Design Models
Organizational design is strategically aligning the organization to create a more effective, efficient organization, and can be imperative for the long-term success of your organization.
Done right, organizational design can shape the core of an organization and help align day-to-day activities with larger goals and values. However, it requires an intentional blend of creativity and innovation with behavior psychology and evidence-backed practices and theories.
There are several ways to achieve organizational design, but there are some tried-and-true models that can help inform your organizational strategy.
What Is Organizational Design?
Organizational design aligns parts of the organization, such as structure, roles, and processes, with larger organizational goals. It is closely tied to organizational effectiveness, efficiency, and adaptability.
Organizational design can help an organization work towards its goals and ensure that it maintains a competitive advantage by optimizing essential areas of the organization. Done right, it can help maintain:
Efficiency
Accountability
Innovation
Engagement
Decision-making
Values
Agility
The process of organizational design involves identifying gaps in the organization or opportunities for improvement and successfully implementing strategies to better align practices with long-term goals.
Types of Organizational Design Models
Organizational design aims to create a successful, thriving organization. But some several models and frameworks can help inform the strategy and plan for organizational design.
There are three types of organizational design models:
Diagnostic: Focus on diagnosing the current state of the organization with evidence-based methods and processes. It utilizes methods such as data collection and analysis and SWOT analysis to systematically identify and address issues.
Transformation: Focus on transforming from traditional hierarchy and structure to create a flexible, future-forward strategy. To do this, the model suggests that organizations should focus on eight fundamental elements: environment, strategy, core processes, structure, systems, culture, and results.
Experimental: Focus on innovative, sometimes untested, approaches to organizational design.
Most Popular Organizational Design Models
Here are some of the most popular organizational design models:
McKinsey’s 7S Model: McKinsey’s 7S Model is a popular example of a diagnostic organizational design model. It outlines seven key organizational elements that must be aligned: strategy, structure, systems, shared values, skills, style, and staff, and highlights how they interact with one another.
STAR Model: Jay Galbraith’s STAR Model is a diagnostic model that focuses on five design principles: strategy, structure, processes, rewards, and people. The model emphasizes the importance of balance and harmony between these principles.
Burke-Litwin Organizational Change Framework is a popular example of a transformation model. This model emphasizes 12 key factors, broken down into external factors, strategic factors, operating factors, individual factors, and output, and how they influence one another in an organization. The framework is organized in a way to show how different factors interact with the ones above and below them.
McKinsey Helix Model. The Helix Model relies on five essential organizational elements that can help companies improve their adaptability and agility: strategy, structure, processes, people, and technology. The model emphasizes two parallel lines of accountability and decision-making, in contrast to a “matrix” structure.
Best Practices for Organizational Design
Here are some best practices for organizational design:
Look at the organization holistically.
Define clear roles, responsibilities, and expectations for employees.
Think proactively about how organizational design can be shifted to fit future needs.
Start by establishing your strategy before beginning the organizational design process.
Involve stakeholders in the organizational design process and keep them informed throughout.
Change organizational design as organizational goals and values change.
Final Notes
Organizational design intends to align organizational structure, processes, and systems with larger organizational goals. Organizational design can improve organizational efficiency, effectiveness, and much more.
The type of organizational design model you implement into your process will depend on unique business needs and what makes sense for your workforce.
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Coordenador Departamento Pessoal
2wFor organizational design to work to its fullest, it is more than necessary that all leaders, at all levels of the organization, are aligned with the strategy and above all with the organization's values, without this any design method will never work.
Skills development strategist and thought leader
2wThe link connecting these design models are people and skills. If there is not people buyin and employees do not have the right skill set or are not up skilled or re skilled…there will be a productivity challenge which will impact on achievement of strategy and performance goals
Employer Engagement Officer - Apprenticeships | BSc Business Management Student
2wJust in time for my assignment! Thanks 🙏🏻
PS HR Professional
2wThe type of organizational design an organization chooses must align with its corporate strategic plan to be effective. This alignment helps streamline processes, improve communication, and use resources wisely. By matching the structure to strategic goals, the organization can better meet market demands, encourage innovation, and boost performance. Involving stakeholders in the design process ensures they understand and support it, which is crucial for smooth implementation and success. A well-aligned organizational design supports the organization's long-term vision and ability to adapt to changes.
Learning and Development Manager NHS
2wPeople are the core of all businesses - companies need to stop taking shortcuts and work with their OD teams to help build successful and happy workplaces.