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It's a process that helps to align all parts of an organisation so it best delivers its strategy. The output of this is the operating model.
It ensures that every part of the organisation is aligned to strategic priorities.
It drives operational efficiency and effectiveness, from optimising the way work and information flows in the organisation, through to being clear on roles and responsibilities, decision-making, and ensuring the right resource is available when needed.
It improves the employee experience giving greater clarity on how individuals contribute to the overall mission.
A good design process will highlight choices and trade-offs.
A restructure or downsizing are potential outputs of an organisation design process, where a choice will need to be made on the best course of action to deliver the optimal operating model.
Common 'triggers' for an organisation may be:
Organisations go through stages of a 'lifecycle'. There are a variety of features that can be seen, heard, or felt depending on the stage. We have identified key points in the lifecycle with a Kozo flag - investing here in organisation design is recommended. Our 1-day workshop is a good place to start, to uncover if your organisation is fit for purpose and designed to deliver what it needs to. Whether the focus is a team, department, or the whole organisation, this high-impact workshop gets groups unstuck and focused fast.
At Kozo we use the Galbraith Star™️model as a framework. It is easy to understand and considers the main components of design:
Culture results from the way the organisation is designed. Simultaneously, culture shapes the organisation. This self-reinforcing relationship must be considered throughout the design process and not be seen as an after-thought.
At Kozo we believe and practice co-design. This means involving full representation of the organisation, so every part of the system has an opportunity to contribute.
It supports in driving greater commitment across the organisation when it comes to making design decisions and implementation. People protect what they help build.
The extent of involvement can happen at different stages of the design process, where senior leaders may be involved initially and then widened to other stakeholders as the design progresses.
We provide pre-reads to help connect design teams with the organisation design process and things to consider. Download these below.
We talk about choices and trade-offs when designing an organisation. There is no such thing as a perfect design and it is never complete!
Some common mistakes we see include:
We love Naomi Stanford's car analogy to describe this:
Organisation Design is like designing and delivering a car. Firstly understanding the intended purpose of the car (e.g. F1 race, desert rally, picking up kids from school) then building it (the blueprint, structure, and key driving features) specific for it's use.
Organisation Development is the ongoing process of maintaining and optimising the car's performance (servicing, fuelling, and training the driver) once it's up and running.
Organisation design is the architecture (the car itself) and organisation development is the maintenance and performance (keeping the car running).

W. Edwards Deming

The organisation's formula for winning. It defines the basic focus and direction, including the goals, objectives, mission, vision, and sources of competitive advantage.
It is the starting point for organisation design and dictates the requirements for the other four components.

The way work and information flows across and beyond the organisation. This includes the activity and tasks that create value for the end customer, and also the work that enables this to happen. Processes may flow vertically (e.g. planning, budgeting) and horizontally (e.g. project management, workflows).

Determines the best way to group work so it flows optimally across and beyond the organisation. The way the organisation is departmentalised (e.g. functional, matrix, geography), centralisation vs decentralisation, the extent of specialisation, and decision-making becomes clear.

Identifies the skills required to deliver the work and the mindsets to achieve success, reinforced by HR policy.
Recognises that activity and tasks can be completed in different ways (e.g. outsourcing or insourcing, human or technology).

Systems designed to align the goals of employees and technology with the goals of the organisation. This includes all formal and informal mechanisms - like compensation, bonuses, promotions, recognition, and performance metrics - that motivate desired behaviours.

Alignment of the 5 components is key to achieve optimal performance. They not only shape the organisation's collective behaviour, but are also continually influenced and reinforced by the culture, creating a continuous, self-reinforcing system.
Dr. Ichak Adizes

Every organisation goes through multiple stages as it grows and adapts. Recognising what is happening at each stage means you can be intentional on the best way to move forward, and if a new, or updated, way of operating is needed.
The organisation lifecycle, defined by Dr. Ichak Adizes and adapted by Kozo, highlights what is happening at each stage and identifies moments where Kozo could help from an organisation design perspective. Download it below.
We share pre-reads and our resources to help connect individuals with the organisation design process, and what it means for their organisation.
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Uncover if your organisation is fit for purpose and designed to deliver what it needs to.
Whether the focus is a team, department, or the whole organisation, this high-impact workshop gets groups unstuck and focused fast.