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chevron_right Core Level (L1)

Core Organizational Design Practices To Align The Organization With Business Strategy.

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Steve Kofford, PhD
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Wowledge Expert Team
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This guide is part of a progression set comprised of Core, Advanced, and Emerging Organizational Design practices.

What it is

Organizational design includes activities to design and implement an organization that can enable the pursuit of the business strategy and organizational goals. These activities include clarifying the scope and structure of the organizational design, articulating the business strategy, as well as identifying organizational priorities and principles to guide the design of the organization. They also include selecting an organizational structure, designing roles, and assessing, selecting, and placing people into roles to enable the organization to pursue its strategy and realize its goals. 

Why use it

A good business strategy is, by itself, not enough to achieve success. Companies also need well-designed organizations that are aligned with business strategy and empower people to perform their best. Designing and implementing the right organization can be challenging, given that companies often face dynamic business environments, and effective organizational design requires the coordination of various aspects of the organization.

A thoughtful, comprehensive approach to organizational design can propel organizations to unlock the potential of their people and achieve faster growth and improved performance.

Practices at this level

Establishing governance and principles for designing the organization that are aligned with business strategy.

Engaging the appropriate stakeholders, utilizing the proper information, and ensuring that the newly designed organization is aligned with the business strategy.

Designing an organizational structure to facilitate coordination and effectiveness across business areas and levels.

Selecting and tailoring a structure that meets the needs of the organization and determines how the organization will work together to implement its strategy and achieve its goals.

Defining capabilities, tasks, and roles to create clarity and accountability in the organization.

Providing clarity for the work required to achieve the organization’s objectives and creating a shared understanding regarding who will perform the work.

Assessing, selecting, and placing people into roles to leverage employee capabilities in the organization.

Leveraging a structured approach to fairly and equitably evaluate talent and place people into defined roles.

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