Advanced Organizational Design Practices That Enhance Coordination.

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

What it is

Effective coordination requires more than just an established organizational structure. It is best facilitated when all aspects of the organization work together to help the organization accomplish its goals. This includes establishing an “operating model”, or a representation of how work gets done to achieve the organization’s goals. An operating model clarifies how different parts of the organization coordinate with each other to complete key tasks, how information is shared, and how performance gets measured and rewarded.

Why use it

Companies need effective coordination to be able to compete in today’s increasingly complex and competitive business environment. The need for coordination is only heightened as organizations grow and mature. Organizations should be designed to facilitate value-creating linkages between individuals and teams across the organization.

Practices at this level

Creating an operating model to align the organization with business strategy.

Designing a model to identify how all aspects of the organization will work to both implement the business strategy and achieve prioritized goals.

Designing process and information flows to efficiently allocate organizational resources and facilitate information sharing.

Creating and documenting major workflows to clarify tasks that are to be performed in an organization and identify the information that is needed for and generated by each task.

Establishing governance and decision rights for key processes to strengthen accountability and ownership.

Assigning responsibilities and accountabilities for critical decisions and actions to be taken in each step of key business processes.

Implementing performance metrics and incentives to empower the organization.

Identifying key performance indicators and reporting tools that can be used to monitor processes and measure employee performance in alignment with business objectives.

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