Designing Organizations: Strategy, Structure, and Process at the Business Unit and Enterprise Levels

Praise for DESIGNING ORGANIZATIONS Jay Galbraith is the preeminent thought leader in the design and implementation of the organizations necessary to compete at the edge in complex business environments. In Designing Organizations , his many decades of insight and experience are synthesized into a navigation tool of high value to the C–suite. Vincent Roche , president and chief executive officer, Analog Devices Inc. At a time when organizations across the globe are evaluating how best to address a fast–changing world, Jays experience and insights will provide sure–footed guidance. His fresh look at organizational adaptation provides great counsel to leaders in uncertain times. George S. Barrett , chairman and CEO, Cardinal Health Jay Galbraith is without a doubt the worlds leading expert on organization design. His Designing Organizations represents profound and up–to–the–minute advice on grappling with the organizational challenges facing todays managers as they struggle to achieve and maintain competitive advantage. We heartily recommend the book to practitioners and scholars alike. Danny Miller , chair in strategy and family business, HEC Montreal and University of Alberta, and Isabelle Le Breton–Miller , chair in succession and family enterprise, HEC Montreal; senior research fellow, University of Alberta Jays ideas have been very helpful in stimulating my thinking and getting me to examine simple and complex structures that enhance culture and behavior. Al Grasso , CEO, The MITRE Corporation With its decidedly strategic perspective, the third edition of Jay Galbraiths Designing Organizations is an outstanding resource for students of organization as well as executives facing complex organizational challenges. The book provides a systematic approach to designing organizations, in which Galbraith builds on his own past work and updates it to address todays rapidly changing organizational environments. Galbraith combines powerful understanding of organizational theory with decades of practical experience to provide a framework for organizational design that can truly help executives reach their strategic goals. Judith Blumenthal , professor of clinical management and organization, Marshall School of Business, University of Southern California

List of Figures and Tables ix Preface xiii 1. Introduction 1 2. The Star Model 15 3. Single–Business Strategy and Functional Organization 57 4. Designing the Lateral Organization 89 5. Types of Single–Business Strategy 107 6. The Reconfigurable Functional Organization 131 7. Designing the Network Organization 149 8. Multibusiness Strategy and Organization 185 9. The Mixed Model 205 10. Adding Value 217 11. The Value–Adding Conglomerates 235 12. Synergy Portfolio Strategies 255 13. Organizational Design Challenges and Opportunities Resulting from Big Data 285 Bibliography 301 About the Author 307 Index 309

JAY R. GALBRAITH is president and founder of Galbraith Management Consultants, an international consulting firm that specializes in solving strategy and organizational design challenges across corporate, business unit, and international levels. He is also an affiliated research scientist at the Center for Effective Organizations at the University of Southern California and professor emeritus at the International Institute for Management Development (IMD) in Lausanne, Switzerland.