Organizational Design

Organization Design is the deliberate process of configuring structures, processes, reward systems, and people practices and policies to create an effective organization capable of achieving the business strategy. The organization design process and its outcome, however, are much broader than rearranging the boxes on the organization chart.

The star model (Chart 3) is a framework for thinking holistically about the five major components of an organization design. Each point on the star model represents a major component of organization design. The structure, processes, rewards, and people practices all support the strategy.