Organizational design encompasses all aspects of organization such as strategy, structure, systems, culture, and their interrelationships. The selected articles provide insights, examples, and success factors for successful organizational design.
How to make a solid organizational design?
Organizational design encompasses all aspects of organization such as strategy, structure, systems, culture and their interrelationship. Also consider the philosophy behind the design on elements such as ‘the human dimension’, competitiveness, entrepreneurship, involvement, complexity reduction, innovation, sustainability, the ‘Rhineland model’ and social innovation.
The challenge is an organizational design where structure, culture, systems and strategy complement and reinforce each other.
The design of your organization determines how customers experience your organization, how employees perform their roles and directors take responsibility. In order to realize your ambitions, your organizational design must align with your strategy, primary process and stakeholder requirements, for example by organizing your activities in such a way that the customer is at the center.
Trends Organizational Design
Smart organization of your organization’s design is becoming increasingly important.
For ‘What and how’ of a smarter organizational design, see Why we can not do without structure. And stop leading, start designing!
Each design has its own dynamics. Let this dynamic work for you as the basis for better results. These are sometimes disruptive forms of organization that increase competitiveness. The following 5 trends will get you on the right track.
- Organizational design as a network
- The online media, organizational design and the platform organization
- Startups and Organizational Design
- Organizational design and design
- Strengthen self-organization and leadership with organizational design
The five trends overlap. There are also organizations that are successful on the waves of several trends. Many platform organizations are a good example of this.
Organizational design as a network
‘Network organizations’. Networks of relatively independent entities are often also intertwined with networks of suppliers and buyers. See our pages on network organizations and on collaboration between organizations.
The network organization is also suitable for social innovation. ‘Greater responsibility in implementation’, ‘greater results orientation of components’ and ‘more flexibility’ fit well. See the Masters in our subject of ‘agile organization’.
A summary of insights and experiences in this regard can be found under Innovative organization.
This type of organization also scores well in innovation: 75% innovation success through social innovation. Organizational networking is facilitated by digital tools. This can lead to platforming.
The online media, organizational design and the platform organization
The new media affect communication within and between organizations. No organization will escape this. This development is still ongoing. The following points show the urge to experiment and the new possibilities.
The platform organization is a striking look. It has its starting point in the online possibilities and has in a short time gained a strong, according to many even disruptive position.
The trend is that increasingly smarter platforms are taking an increasing share of economic activity. With their algorithms, platforms are an alternative form of work organization. This also means an increasing demand for on-demand freelancers. “If necessary, freelancers gather in teams for a tender or to carry out a complex project together. They find each other, for example, via Part-up or in communities that have not yet been formed. On the demand side, customers find it easier to find ‘ the right man for the job ‘because of the wider selection and better matching, often supported by reviews from previous clients. “
Thus, there is the conclusion that in the gig economy, the final breakthrough for the self-employed and the end of the traditional organization is imminent. See:
– Organize and manage algorithmically as needed – The organization of the future is already announcing itself. What do the traditional organizations do?
The emergence of communities of independent professionals – Why freelancers connect with each other in the concert economy
Startups and Organizational Design
Start-ups usually care very little about organizational design. In the process, emerges among the ‘surviving’ forms of organization and management that inspire effective organizational design, especially for organizations that want to grow and innovate faster. Successful start-ups are characterized by ingenuity, speed, other forms of collaboration and the ability to innovate.
Agility, technical ingenuity and sense of customer or target audience, these are the factors that determine whether you progress step by step. Estimating budgets, drawing up business plans and meeting many experts and key people about this: all a waste of time! Even worse: they are guarantees of failure. You work the enthusiasm, the spirit, the inspiration, the agility, the creativity, the determination and the enthusiasm out the window. ” Source: Interview with ‘serial entrepreneur’ Boris Veldhuijzen van Zanten.
More info: Think like a startup – It’s adapt or die – How to handle the increasing transparency and acceleration of change in virtually all sectors.
Organizational design and design
It’s time. ‘Design’ is now definitively transferred to organizations. It claims a wide range of applications based on the principles ‘Everything is about the customer’ and ‘Only the end user counts’. The following articles provide an idea. First, another confusing statement:
‘Organizational design eats strategy & systems for breakfast and culture & structure for lunch!’
Strengthen self-organization and leadership with organizational design
We are increasingly seeing a build-up of relatively small units with their own responsibility for results. We see this reflected in all the trends mentioned. This inevitably raises the question of how that responsibility and the necessary self-organization can be realized. The issue of horizontal cooperation and coordination also arises.
Control is important; a form that does not flatten autonomy and personal responsibility. It is a form of management in which aspects of organizational design such as structure, systems, culture and strategy complement and reinforce each other. This creates the basis for a strong positive dynamic. In small organizations, this can sometimes be a success. As organizations grow, we see that people are not aware of this. Three examples:
1. Collaboration is encouraged, but individual assessments and individual goals set the tone†
2. A tech company places decision making lower in the organization, but direction and framework are more vague than ever.
A board member: ‘Self-directed teams are perfect, we’re going to roll them out quickly in our organization.’
Do you feel the contradictions in these actions. How to get the energy out of the organization.
If the coherence between the organizational principles is lost, it takes a lot of strength out of the organization. People either believe in it or become cynical. It is precisely the art of gathering all strength and human energy and focusing on improving outcomes and goals. It is undeniable that some organizations are better at this than others.
Strengthening both self-organization and leadership seems to be the key. Sometimes, healthy internal competition between the units can be well combined with forms of coordination and collaboration. For example, some cooperatives in agriculture and horticulture are characterized by AND individual entrepreneurship by the affiliated members AND central management & cooperation. Network and platform organizations sometimes develop in this direction as well. The Chinese Haier is a strong example of this,
The following 3 articles provide inspiring concepts and experiences.
- New organization
What about the interplay between technical, organizational and other factors? Do they counteract or reinforce each other?
- Competitiveness and innovative organization
How to organize so that strategy, structure, systems and culture complement and reinforce each other in their effect on behavior, attitude and cooperation.
- Puzzle pieces: is your organization in balance?
Organizations are puzzles. The big picture consists of countless separate pieces that fit together. Although: ‘fit together’?
Disruptive forms of organization
Some organizations then make use of the trends described above that their position becomes ever stronger. Notable in this regard are the companies that attract attention with disruptive technology like Booking.com, Google and AirBnB. But the underlying organizational design also plays a role. Such a large role that organizations that do not differ through disruptive technology can actually have disruptive power at their disposal. It is then the form of organization that does it for him. These are organizations that are characterized by a strong dynamic towards an increasingly strong position in their market. Buurtzorg.nl is an example in the healthcare system, VDL in the industry. More examples can be found under Innovative organization and Responsible management. See also: Is your organization sufficiently agile? An extremely powerful example of the latest development is provided by the Chinese company Haier: The Haier case – New Organize as a competing monster.
One would think that such forms of organization would be adopted at lightning speed. Forget it. Getting started with a new technology will still work; a new form of organization requires different behaviors. It’s a different cake. It is clear that new technology is now being used extensively in organizations. The emergence of the platform organization is a threat to many ‘old’ organizations. The Haier case shows how this threat takes shape in a very concrete way. The following article is also not reassuring: Concert Finance – The end of the organization?
Organizational design: insights, examples, tips
Here is a selection of articles on the above topics. Also the latest contributions from ManagementSite Network, the articles with the most reactions and Tips & tricks. The ‘related topics’ at the end of the articles provide background information.
The network organization’s knowledge base page provides additional information. Many organizations network after all. Even beyond the boundaries of one’s own organization and deep into the chains of dependence within which the organization operates. In this context, a look at the page Collaboration between organizations is also appropriate.