How it works

Once organizational design priorities and principles have been identified, an initial organizational structure should be selected and tailored to the organization's needs. The structure plays a major role in determining how the organization will operate both independently and in conjunction with other teams to implement its strategy and achieve its goals. It also guides how other aspects of the organization are designed and implemented. As such, a structured and thoughtful approach to the organization's design should be followed to ensure that mission-aligned, principles-based foundations are established and integrated into the resulting model.

looks_oneClarify the strategic purpose and value proposition of each function

The organization's structure should begin with clear statements of the value to be derived from each business function and how they will work in a coordinated fashion to best achieve the financial, operational, and talent objectives of the enterprise as a whole. In this way, leaders and planners can create a design that optimally enables and leverages their contributions and collaborations. This starts with the leadership and expert team defining the strategic mission and purpose of each function by asking questions that connect enterprise strategy with each function’s purpose and its measurable value (with follow-up or clarifying queries):