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Home > Process-Based Organizational Design
Process-Based Organizational Design
Organizational design is the definition of individual, team and group responsibilities for carrying out required tasks. Organizational design has a significant impact on both business results and the subjective experience of what it’s like to work in an organization.
Organizational design is frequently approached as a top-down problem. Dating back at least to the 1860s when the Transcontinental Railroad was built across the U.S., the top down approach organizes work by creating separate departments, often defined by management “functions” such as Sales, Operations and Finance. Major objectives are assigned to each of these departments, and each department is run more or less independently in pursuit of its unique objectives. Teams and individual roles are defined by further subdividing departmental objectives.
Some argue that the top-down approach to organizational design originated well before the dawn of the modern corporation and had its roots in the kingdoms and monarchies established throughout human history (The End of Bureaucracy and the Rise of the Intelligent Organization, Berrett-Koehler Publishers, 1993.)
Unfortunately, a top-down approach serves to focus energy on managing up and down the hierarchy, not on serving customer needs. It is often hard to connect with or even identify customers in an organization built on these principles.
Approaching organizational design from a hierarchical perspective not only fails to serve customers, but also yields a conflict-ridden design process and, ultimately, a conflict-ridden design. Prospective organizational changes are perceived as threatening to each individual’s territory, team, allegiances and livelihood. Few developments inspire as much trepidation, even dread, as the announcement of an organizational redesign.
After nearly twenty years experience in guiding organizational design initiatives, we are pleased to say there is a better way⎯in fact, a much, much better way.
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