Optimizing Organization Design offers a comprehensive resource and valued guide for anyone interested in improving organization performance. The book presents an approach to optimizing organization design that is based on over 100 large scale projects and 23 research studies that have been completed by Capelle Associates over the past 25 years. In addition, the book includes insightful comments from executives on their success in using this approach. Capelle’s research and client experience reveal that optimizing organization design leads to better financial performance, customer satisfaction and employee engagement. It can provide a competitive advantage and a significant return on investment. It can also become the foundation of both strategy implementation and human resources management.
Capelle shows that organization design includes the alignment of a number of critical factors, including positions (vertical and functional); accountabilities and authorities (managerial and cross functional); people; deliverables and tasks. He shows that manager – direct report alignment is the single most important organization design variable. His research also shows that it is suboptimal nearly half the time. This is a horrendous waste of talent and capability, but also provides a significant opportunity for improvement in organization performance.
Optimizing Organization Design clearly explains how to implement organization design improvements. This approach includes people change management, project management, and a cascading, iterative approach that is based on teams and involves education, doing real work and feedback. In addition, Optimizing Organization Design includes special sections on the role of the Board of Directors, project management, process management and compensation. In addition, the author has included four case studies and a useful glossary.
Table of Contents:
List of Research Studies xi
Acknowledgments xiii
Introduction xix
1 Why Organization Design Matters 1
Employee Satisfaction 2
Customer Satisfaction 5
Financial Performance 6
Competitive Advantage 7
Significant Return on Investment 8
Foundation of Strategy Implementation 9
Foundation of Human Resources Management 10
Client Experience 12
Research Support 13
Special Topics 15
Conclusion 18
2 Organization Design Assessment 20
Organization Systems Functioning Model 23
Organization Systems Change Model 28
Organization Alignment Model 29
Vertical Alignment of Positions 32
Functional Alignment of Positions 58
Aligning Accountabilities and Authorities 73
Aligning People with Positions 103
Aligning Deliverables 112
Aligning Tasks 126
Organization Design Principles 135
Conclusion 136
3 Organization Design Implementation 138
Objectives of an Organization Design
Implementation 140
Organization Design Implementation Components Model 141
Organization Design Implementation Process Model 150
Organization Design Implementation Principles 155
Strengthening the Organization Design Implementation 157
Internal-External Team Approach 160
Conclusion 162
4 An Overview of the Process 164
Initial Discussion, Proposal, and Contract 165
Assessment, Report, and Meetings 167
Implementation 172
Sustainment 174
5 Additional Topics of Importance 175
The Role of the Board 175
Project Management 184
Process Management 189
Compensation 192
6 A Call to Action 195
Appendix A: Client Experience 201
Appendix B: Research 225
Appendix C: Case Studies 362
Allstate Insurance Case Study 363
Canadian Pacific Case Study 377
Capital Power Case Study 390
Royal Ottawa Health Care Group Case Study 404
Glossary 417
References 430
About the Author 440
Index 441
