For anyone wondering why changing the org chart didn't make the comapny work better

For the advanced practitioner | Guide to Organisation Design: Creating high-performing and adaptable enterprises (The Economist) | Naomi Stanford

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	• Guide to Organisation Design: Creating high-performing and adaptable enterprises (The Economist) Naomi Stanford Bloomberg Press, 2010 - 343 pages average customer review:based on 4 reviews view larger image
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Guide to Organization Design

Naomi Stanford has done it again! Her work on organization design serves as a useful tool for those of us teaching the subject. The models are very useful and well-researched. The examples she provides, such as the Shackleton expedition, to make her point are enlightening.

I particularly appreciated the Appendix of sources and annotated bibliography. Well done!

For anyone wondering why changing the org chart didn't make the comapny work better

It's too bad that for most people organizational design equals the org chart. What this means is that the organization has a structure of some kind, but that no thought or care is given to the way the organization functions as an entity. Today, everyone competes with everyone everywhere. Those who are the most poised to deliver all of their energy, maximize the use of their resources, and have a design aligned with their strategy are most likely to win in the mega melee (sometimes called a marketplace).

Of course, business schools teach a lot of different courses on organizational behavior, of which design is a part. However, they also teach courses (often required courses) on managerial accounting and how many companies are limping along without those systems? The author, Naomi Stanford, wisely points out that the reason the activity of designing organizations is neglected is because it is very hard and is not the stuff that builds high profile careers. Yet, neglect of this process weakens, cripples, and then kills many organizations as they come under pressure.

In the first chapter she talks about what organizational design is and is not. She then covers each of these topics in separate chapters: 2) Discussing various design models and approaches. 3) Various approaches to structuring organizations (and how it is only a part of the design). 4) How to plan and implement your design change project. 5) What measurement of your project might mean and ways to do it. 6) The role of Stakeholders in the design process, whether you want them there or not. 7) Where to find the leaders to help you in your design project (many of them without formal titles) and what to watch out for from those who might think they will lose out in the change. 8) How your group culture will affect your ability to change your organization design.

The last chapter discusses the importance of not trying to build the one fixed perfect design. Rather, the goal should be to build adaptability into the design so the organization can change in order to successfully compete. Stanford calls this the ability to morph.

Of course, the author is a consultant on this subject and works with organizations on the design change projects. This book is a great handbook for anyone thinking about beginning such a project and a good reference for ideas, principles, and suggestions as your work your way through it.

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For the advanced practitioner

I was stuck at the Brussels airport after working with a client, and happened upon this book about the models of organizations. Clearly I was meant to run across it - and it is humbling. Even with my PhD in organizational psychology and consulting for 15 years, I was blown away by the thinking in this book. So many models out there are written for 1980s hierarchical, Theory X worlds, and Stanford presents thinking that will be helpful in guiding us in 2010, not 1980. A few highlights:

- case studies about organizational cultures - and one company's book (pg 26)
- working from a learner mindset, not a judging one #pg 44#
- a tool to evaluate the organizational structure #pg 78#
- a review of a model of influence without authority #pg 201#
- and my very favorite, an explanation of existing organization design models (pg 287)

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Solid take on managing an organizational design project

Naomi Stanford believes that executives pay too little attention to changing their companies' organizational designs, perhaps because such initiatives don't promise high-profile careers. Yet, updating your organization's structure is a vital process that can make your company stronger by unleashing its energy and using its resources more aggressively. This handy publication covers material you might study in a college-level organizational design course. However, it isn't a textbook. Think of this manual as a survey of the subject, with many helpful suggestions and thought-provoking ideas. The writing is compact, a little dry and somewhat jargon-laden. However, if you want to examine what your company needs to consider in a design change project, we recommend this solid resource.

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There are many designs and theories for how to best structure companies, but not all prove successful. In America alone between 1990 and 2000, there were over 6.3 million business start-ups and 5.7 million business shutdowns. This new guide in The Economist series, written by a leading consultant with deep experience on both sides of the Atlantic, explores five basic principles that will render organizational design effective, encouraging both high performance and adaptability to changing circumstances. This is an invaluable guide for any manager wanting to build a better, smarter company faster.

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