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design choices must be complementary in five categoreis
strategy
structure
processes
metrics and rewards
people practices
strategy is
a formula for success based on vision, mission and goals in relation to external and internal factors
structure determines where
formal power is located (functions, products, geographies, customers) and configured into a decision hierarchy
processes integrate
activities and route information up, down, and across the hierarchy and clarify roles and responsibilities, especially at the boundaries created by structure
metrics and rewards align and motivate
individual behaviors and performance with strategic goals
people practices set policies to
hire, train, and develop for the capabilities and mindsets required by the strategy
____ are the key to the star model
capabilities
capabilities are
the unique combination of internal skills, technologies, and abilities that differentiate a company
strategy dictates the specific capabilities (core competencies) necessary to
execute on the chosen strategy and accomplish its specific goals
people, structure, processes and measures must be ALIGNED through
organization design to create and support these capabilities
much of the design process will be deciding
what not to do