DESIGNING FOR HIGH PERFORMANCE

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1 DESIGNING FOR HIGH PERFORMANCE AU

2 Organizational Design: A Step-by-Step Approach, 3rd Edition Authors: Richard M. Burton, Duke University, North Carolina Børge Obel, Aarhus Universitet, Denmark Dorthe Døjbak Håkonsson, Aarhus Universitet, Denmark Date Published: July 2015: availability: Temporarily unavailable - available from October 2015 Cambridge University Press AU

3 ET EXECUTIVE SUMMARY En lille film AU

4 AU

5 MICROSOFT Steve Balmer Microsoft s retiring CEO wrote in an to all employees of Microsoft: Today, we are announcing a far-reaching realignment of the company that will enable us to innovate with greater speed, efficiency and capability in a fast changing world. Today s announcement will enable us to execute even better on our strategy to deliver a family of devices and services that best empower people for the activities they value most and the enterprise extensions and services that are most valuable to business. AU

6 Informa)on Systems Coordina)on / Control Climate Strategic Organization Design Leadership Style Incen)ves People Goal Task Design Strategy Knowledge Exchange Environment Geographic Distribu)on Configura)on Complexity Organization design is a systematic approach to configuring and aligning structures, processes, leadership, culture, people, practices, and metrics to enable organizations to achieve their mission and strategy. Organizations can be described by 14 basic characteristics. All characteristics are connected to each other. Each connection is a link between two organizational characteristics. OrgCon analyzes all the characteristics and connections of an organization. The output shows whether the organization is balanced or imbalanced.

7 Informa)on Systems Incen)ves Goal Strategy Environment A misfit link represents an opportunity to improve Coordina)on / Control Configura)on In a study of Danish companies, the difference was: Climate Complexity Leadership Style Geographic Distribu)on People Task Design Knowledge Exchange

8 Incen)ves Goal Strategy Informa)on Systems Environment Coordina)on / Control Climate Configura)on Complexity When all links are in fit, the organization will have an optimal performance and be in balance. Leadership Style Geographic Distribu)on People Task Design Knowledge Exchange

9 Identify Status of Links between the organizational elements Who talks to whom about what, who makes which decisions based upon what informa)on Uncertainty, costs and imperfectness of informa)on, decisions and imperfect informa)on Informa)on Processing Design Perspec)ve An OrgCon analysis Will find opportunities Make and explain recommendations

10 The Multi-Contingency Model Goal Informa)on Systems Incen)ves Strategy Environment The organization is described by 14 basic characteristics and their relations. Coordina)on / Control Climate Configura)on Complexity Each characteristic is scored on two fundamental dimensions Leadership Style People Task Design Knowledge Exchange Geographic Distribu)on Each dimension is measured by aggregation of number specific variables values

11 THE MULTI-CONTINGENCY MODEL FIT MODEL Elements are in fit if they are located in the same quadrant AU

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13 HVAD ER PERFORMANCE v v v v v Overskud Omsætning Kundetilfredshed Per år eller på et fremtidigt tidspunkt Performance på et sygehus v v v v v Dødelighed ( 6 dage og 30 dage) Patienttilfredshed Genindlæggelse Medarbejder tilfredshed Økonomiske indikatorer AU

14 HVAD ER SAMMENHÆNGEN MELLEM ORGANISATIONSDESIGN OG PERFORMANCE? AU

15 DOTY, D. H., GLICK, W. H., & HUBER, G. P. (1993). FIT, EQUIFINALITY, AND ORGANIZATIONAL EFFECTIVENESS: A TEST OF TWO CONFIGURATIONAL THEORIES. ACADEMY OF MANAGEMENT JOURNAL, 36(6), Mintzberg's and Miles and Snow's configurational theories have both received widespread attention. Most researchers, however, have interpreted these theories in terms of categories of organizations rather than organizational configurations based on ideal types. We explicated the logical structure of configurational theories and developed a set of configurational fit models that are congruent with alternative assumptions of equifinality, which is the premise that multiple organizational forms are equally effective. Then the two theories were formalized with these models and tested empirically. Contrary to our expectations, the results do not support Mintzberg's theory that organizations will be more effective to the extent that they resemble his five ideal types. In contrast with these null results, configurational fit based on Miles and Snow's theory predicted 24 percent of the variance in overall organizational effectiveness. AU

16 AU

17 Informa)on Systems Incen)ves Goal Strategy Environment A misfit link represents an opportunity to improve Coordina)on / Control Configura)on In a study of Danish companies, the difference was: Climate Complexity Leadership Style Geographic Distribu)on People Task Design Knowledge Exchange

18 ORGANISATIONSDESIGN OG HIGH PERFORMANCE PERFORMANCE q q Organisations design har stor betydning for performance. Organisations design har betydning for såvel økonomisk som andre mål q Men ikke alle links har samme betydning! q q Organisations design har større betydning for komplekse organisationer som f.eks. matrix organisationer. Organisations design har større betydning i dynamiske og komplekse omgivelser end i rolige simple omgivelser. AU

19 Tak for opmærksomheden AU

20 AU

- PUBLICATIONS - Dorthe Døjbak Håkonsson -

- PUBLICATIONS - Dorthe Døjbak Håkonsson - - PUBLICATIONS - Dorthe Døjbak Håkonsson - Books: (Eds.) Rich Burton, Bo Eriksen, Dorthe Døjbak Håkonsson, Thorbjørn Knudsen, Charles Snow (2008): Designing Organizations: 21 st Century Approaches. Springer

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