22 March 2023
Are you Familiar with Agile Organization Design?
What is Agile Organization Design?
It's a powerful approach to designing organizations that allows for adaptability to customer demands. According to organizational design expert Jay Galbraith, there are five key components that make up an effective organizational design: strategy, structures, processes, reward systems, and people practices.
When these components are aligned and support each other, the organization is most effective, as people get a consistent message about the appropriate behavior.
But why should you care about organization design?
Simply put, to achieve your business strategy, your organization must have the capabilities to support it. This includes the skills, competencies, and alignment of your employees. If your organization's capabilities and strategy are incompatible, it becomes less effective. Imagine needing to respond quickly to customer requests to be successful, but your existing department structure and processes make even a small change to a product take months of decision-making and development. Your current capabilities would not support your new strategy.
