Designing an organisation has become a constant challenge for leaders as market forces and internal change lead to regular reappraisals of whether the current design of the organisation will deliver its strategy This book aims to provide these leaders with the knowledge to assess the appropriateness of their designs For small organisations it pictures design options and the growth phases they will have to achieve if their strategy is to become a national then global organisation Leaders in larger organisations can use this book to understand the options they have to design their organisation to give it a competitive advantage in their market The book links theories with practical ideas on how to effectively design organisations and illustrates the models with examples of how some of the most well-known organisations have changed their designs to achieve their strategies Michael Bellerby has been an organisation designer and strategist for more than 20 years in both consulting and line-management roles This practical exposure to the benefits of a great design and the dire consequences of a poor design has led to ideas that are both innovative and practical ORGANISATION DESIGNS FROM START-UP TO GLOBAL michael bellerby Start-up to Global is an important book for leaders of and advisors to organisations of all sizes An organisation design is closely linked to strategy It is both an enabler of the current strategy and reflects the achievement of previous strategies ORGANISATION DESIGNS FROM START-UP TO GLOBAL dynamic designs for growth michael bellerby ORGANISATION DESIGNS FROM START-UP TO GLOBAL dynamic designs for growth Copyright © KR Publishing and Michael Bellerby All reasonable steps have been taken to ensure that the contents of this book not, directly or indirectly, infringe any existing copyright of any third person and, further, that all quotations or extracts taken from any other publication or work have been appropriately acknowledged and referenced The publisher, editors and printers take no responsibility for any copyright infringement committed by an author of this work Copyright subsists in this work No part of this work may be reproduced in any form or by any means without the written consent of the publisher or the author While the publisher, editors and printers have taken all reasonable steps to ensure the accuracy of the contents of this work, they take no responsibility for any loss or damage suffered by any person as a result of that person relying on the information contained in this work All cases are for illustrative purposes only and the intent is not to evaluate the performance of an organisation First published in 2017 ISBN: 978-1-86922-662-6 (Printed) ISBN: 978-1-86922-663-3 (ePDF) Published by KR Publishing P O Box 3954 Randburg 2125 Republic of South Africa Tel: (011) 706-6009 Fax: (011) 706-1127 E-mail: orders@knowres.co.za Website: www.kr.co.za Printed and bound: HartWood Digital Printing, 243 Alexandra Avenue, Halfway House, Midrand Typesetting, layout and design: Chirene Hughes, Two Red Crows, chirene@tworedcrows.co.za Cover design: Chirene Hughes, Two Red Crows, chirene@tworedcrows.co.za Editing and proofreading: Chirene Hughes, Two Red Crows, chirene@tworedcrows.co.za Project management: Cia Joubert, KR Publishing, cia@knowres.co.za ORGANISATION DESIGNS FROM START-UP TO GLOBAL dynamic designs for growth By Michael Bellerby 2017 CONTENTS CONTENTS About the author Preface Acknowledgements 10 An Introduction to Organisation Design Models 12 SECTION 1: Work in an Organisation 19 Introduction 20 The first stage in organisation design: An organisation chooses the work its design must deliver 21 The role of stakeholders .36 Summary 49 SECTION 2: Designing Work .51 Introduction 52 Picturing an organisation: The building blocks of organisation design 53 The five models of organisation design 63 Start-up .67 Basic management .72 Mature business 77 Corporate 89 Global 136 Changing the design model 142 Examples of organisations that achieved global recognition and how they grew through the models 151 Summary 162 CONTENTS SECTION 3: Implementing Designs .163 Introduction 164 Deciding the scope of an organisation design process 164 The steps to design and implement the models 169 Summary 197 SUCCESS AND FAILURE IN ORGANISATION DESIGNS 199 Summary 213 Recommended reading 214 Index .217 ABOUT THE AUTHOR ABOUT THE AUTHOR Michael Bellerby has been an organisation designer and strategist for more than 20 years in both consulting and line-management roles This practical exposure to the benefits of a great design and the dire consequences of a poor design has led to ideas that are both innovative and practical Mike lives in England after senior consultancy roles in the United Kingdom, Australia and southern Africa His expertise in business improvement was gleaned through managing change programmes for over 100 organisations in many industry sectors A fascination with how work is changing through technology and globalisation led to his research into the complexity of work In 2003, he wrote a booklet on structuring organisations with Martin Lewis, Structuring Organisations: The Foundation to Support Learning, and in 2013 they wrote a book on competencies, The Competency Equation, which was published by Knowledge Resources in South Africa He continues to mix the development and writing of work complexity theories linked to organisation design and leadership competencies with a role as a strategist for a large financial services organisation PREFACE PREFACE Organisation Designs from Start-Up to Global is the second in a series of three books that aim to empower business leaders and specialists to effectively design organisations that deliver the valuable outputs required by their organisations The first book in the series, The Competency Equation (published in 2012 and co-authored with Martin Lewis), sets out the factors that define whether an individual is competent to complete an activity of work and, importantly, finds it enjoyable Organisation Designs describes how the design of an organisation changes as it grows and the volume of work increases Through understanding the work an organisation must do, leaders make choices on how to divide work among the different parts of the organisation This book provides a framework of the options available to leaders, depending on the volume of work This is important because in larger organisations the choice of design can lead to significant competitive advantages The third book in the series will build on a small book Martin and I published in South Africa in 2003 called Structuring Organisations It was written as part of the Knowledge Resource’s Roadmap Series, and has recently been relaunched This book links the work an organisation wants to achieve to employee competence through the design of roles and structures These three books cover the spectrum of what I refer to as organisation design Strategy defines what work an organisation wants to do, where this work takes place and who does it, both in terms of a formal position in a structure and the individuals employed This book touches on strategy, but focuses on where work takes place in an organisation The Competency Equation focused on understanding which individual is aligned to deliver the work, while the third book, covering structures, will link the design INDEX 220 organisation, 12–15, 25, 37–38, 45, 53– 55, 57–59, 61–64, 69–72, 77–79, 134–136, 143–147, 161–162, 167–169, 176–177, 207–209 design, 6, 13–15, 48–49, 53–54, 61–64, 77–79, 110–112, 127–128, 147, 161–162, 164, 167–169, 176–177, 197–199, 207–209 structures, 6, 45, 59, 62, 114, 119, 161, 220–221 organisations, 8, 12–15, 17, 53–55, 61–63, 68–70, 74, 89, 127–128, 134, 151–152, 159, 161, 179, 199 societies, 12, 214 structures, 45, 62, 114, 120, 125, 161, 220 complexity, 6–8, 17, 22–23, 36–37, 48–50, 77–78, 84–85, 93–95, 127–130, 135–136, 146–148, 162, 195, 207–209, 214 of an organisation, 13–15, 36, 43, 46, 49, 52, 69, 93, 123, 189, 195, 221 of stakeholders, 36, 46, 48, 52, 65, 69, 80, 127–128, 151, 160, 221 conflicts of interest, 32, 221 consultants, 10, 42, 221 contracts, 42, 104, 115, 122, 221, 230 for work delivery, 221 convenience of location, 39, 221 cooperative, 22, 221 coordinated planning, 34, 221 core, 24–25, 77, 80–81, 85, 99, 106, 109, 126, 128, 131, 134, 147–148, 179, 182, 221 business, 24–25, 35, 55, 77, 80–81, 85, 98–99, 109–110, 126, 128, 147–148, 179, 182, 205–206, 221 competencies, 24–25, 221 design models, 99, 221 corporate, 14–15, 58–59, 63, 66, 85–86, 89–105, 107–111, 113–129, 135– 140, 146–150, 152–158, 160–162, 192, 207–212, 221–222 business, 57–59, 63–64, 66–67, 85–86, 89–100, 103–105, 107–108, 111–120, 122–129, 135–136, 147–149, 154–155, 160–162, 207–210, 221–222 centres, 58, 63, 93, 96, 104–105, 112, 119, 125, 208, 221–222 design, 14–15, 58–59, 89, 94–100, 102– 105, 108–112, 115–118, 123–127, 135–140, 155–157, 161–162, 181, 192, 209–210, 221–222 governance, 30, 34, 136, 146, 161, 183, 192, 221 corporate model, 15, 85–86, 89–90, 94–95, 97–99, 114–117, 119–120, 122–123, 126–128, 135–140, 146–148, 157–158, 192, 207–208, 210–211 additional business units, 221 brand, 134, 221 central, 15, 86, 89–90, 117, 119–120, 123, 136–137, 140, 210, 221 head office, 15, 89–90, 119–120, 221 leadership function, 210, 221 strategic direction, 221 channel organisation model, 221 clarity where profit is made, 221 core design models, 99, 221 cost competitiveness, 207, 221 currencies, 221 customers’ different needs, 221 customer segmentation design model, 221 design failures, 210 design of business unit elements, 221 executive team, 15 strategic services to enable continued success, 15 geographical locations, 207 good organisation design, 207 industry regulation or legislation, 92 managing larger numbers of business units, 122 poor control from the centre, 210 positioning of service units, 207 size of a corporate centre, 119 technology/business activity, 92 technology design model, 99 work complexity, 94–95, 117 work design options, 98 corporate plan, 23, 222 cost(s), 222 centres, 222 competitiveness, 222 of doing business, 222 of finance, 222 cultural differences, 62, 129, 222 culture, 27, 30–31, 33, 90, 94, 116–118, 122, 125, 133–134, 142, 146, 149, 177, 187, 233–234 of control, 30, 116, 222 currencies, 93, 221–222 customer(s), 222 base, 222 experience, 222 focus, 222 groups, 222 information, 222 interest, 222 interface channel, 222 locations, 222 INDEX measures of products and services, 222 performance, 222 primary focus of effort, 222 D decentralisation, 31–35, 98, 114, 116, 121, 150, 175, 180, 223, 234 decentralised, 8, 31, 33–34, 121, 133, 141, 150, 168, 174, 197, 207, 223, 229 approach, 31, 223 business units, 31, 33–34, 122, 168, 207, 223 control, 30–31, 33, 150, 168, 207, 223 sales teams, 174, 223 dedicated multifunctional leadership, 63, 223 define the business units, 96, 223 delivery, 26, 53, 55–56, 71, 74, 76–77, 80, 82–83, 97, 103–105, 109, 112–114, 183–184, 223–224, 238–241 time, 39, 68, 146, 223, 239–240 of value, 18, 56, 71, 97, 113, 146, 223–224 of work, 21, 36, 49, 60, 71, 80, 82–83, 103–104, 146, 164, 205, 223, 240–241 department plan, 23, 223 departments, 41, 44, 55–59, 61, 63, 75–77, 79–80, 84, 98, 103, 114, 121, 124, 141, 149–151 groups of teams, 55, 223 have functional titles, 223 led by a functional expert, 55, 223 led by managers, 55, 151, 223 design, 1–3, 5–10, 12–18, 26–30, 48–50, 52–54, 57–65, 77–82, 93–118, 123–143, 147–153, 155–162, 164–203, 206–211, 213–234 blueprint, 170, 178, 186, 188–189, 193–194, 198, 223, 226, 233 challenges, 62, 64, 114, 125, 128, 130–131, 134, 145, 189, 192, 198, 203, 216, 223, 232 change, 48, 52, 80–82, 126, 131–132, 145, 147–150, 164–171, 173–178, 185, 187–198, 219–220, 223–224, 226, 232–234 characteristics, 64, 79, 95–96, 173, 177, 223 choice, 5, 8, 27, 29, 36, 38, 45, 48, 94, 96, 125, 127, 130, 203, 207 complexity, 13, 15, 17, 22–23, 49–50, 77–78, 85, 93–95, 123, 162, 195, 207–209, 217–218, 221–223, 233–234 criteria, 23, 29, 85, 167, 169–171, 173–179, 186, 188, 197, 200, 223, 226, 233–234 elements, 18, 27, 29–30, 32–33, 53–54, 57–62, 78–80, 112–114, 178–183, 185–186, 188–189, 192–194, 218, 223–224, 226 failures, 210, 221, 223 framework, 5–6, 17–18, 22, 28, 63, 178 models, 1–2, 6–9, 12–14, 16–18, 52–53, 60–65, 91, 99, 102–103, 150–153, 161–162, 164–165, 172, 194–196, 220–221 options, 5, 7–8, 52–53, 63, 80, 82, 95–96, 98–99, 103, 112, 169–170, 175, 177–181, 186, 192–193 performance, 26, 60–61, 108, 110, 166–167, 173–174, 177, 186–187, 189, 191, 199–201, 207–208, 210, 212–213, 218 phase, 108, 171, 177, 194, 226 process, 29, 99, 114, 116, 164–167, 169, 171–175, 177–179, 181–189, 191, 193–197, 215–216, 234, 236, 240–241 skills, 100, 132, 210 strategy, 5, 7, 15–16, 52, 59–60, 117–118, 142, 147, 165–171, 186, 193–194, 196–197, 207–208, 213, 215–216 support, 28–30, 52, 78–81, 112, 117, 125, 131, 164–165, 167, 174–175, 179, 184, 187–188, 192–193, 195–197 team, 13–15, 53–54, 58–59, 62–63, 65–67, 75, 78–79, 117, 170–177, 181, 185–186, 190–195, 202–203, 208–209, 219 designing, 1, 7–8, 46, 51, 58, 109–110, 112, 116, 161, 170, 177, 179, 213, 215–216, 224 the organisation, 7–8, 26, 50, 52, 58, 110, 112, 116, 132, 160, 170, 177, 179–180, 213, 224 work, 1, 6, 26, 46, 51–52, 116, 161, 170, 215, 224 in an organisation, 46, 52, 224 developed countries, 36, 224, 230 digital products, 159, 224 directors, 33, 62, 78, 217, 224 distribution, 24–26, 35, 55, 73, 75, 79–81, 109, 132, 220, 224, 228, 238 channels, 24, 26, 55, 132, 220, 224 diversity, 34, 82, 86, 134, 224 of markets, 224 of products, 34, 224 221 INDEX of work methods, 224 divestment, 93, 117, 168, 210, 222, 224 dividends, 40, 135, 137, 224 divisional structures, 114, 224 divisions, 58, 96, 103, 123, 125, 136, 176, 179, 209, 224, 228 doers, 14, 224 create organisation’s value, 224 downturns, 72, 213, 224 duplication of internal services, 32, 224 duties of directors, 33, 224 Dyson, 24, 125, 154–155, 157, 224 E 222 economic conditions, 147, 211, 224 economies, 74, 79, 81, 86–87, 90, 92, 102, 106, 113–114, 122, 125–126, 132, 134, 138, 144 of scale, 47, 74, 79, 81, 86–87, 90, 92, 102, 106, 113–114, 122, 125–126, 132, 138, 144 effective, 36–37, 76, 80, 83–84, 90–92, 115–117, 126, 142–143, 145–146, 161–162, 166, 204–207, 209–211, 214–215, 224–225 organisation design, 9, 13, 43, 63, 110, 117, 126, 143, 166–167, 207, 215, 224 work design, 222, 224 efficiency, 7, 102, 115, 224 elements in an organisation, 18, 99, 224 support the delivery of value, 18, 224 employee competence, 5, 224 employees, 23–27, 38, 41–44, 54–55, 67–68, 70–76, 82–83, 85–86, 88– 89, 134–135, 137–138, 159–161, 188, 194–195, 234–235 broad team categories, 224 change roles, 195, 224 competence, 24, 224–225 internal stakeholders in an organisation, 225 personal growth, 145, 225 potential, 41, 44, 128, 225, 235 promotions, 145 require outputs from an organisation, 225 effective teams, 225 HR administration systems, 225 payment for work, 225 plans and direction, 225 provision of tools and resources, 225 engineering inventions, 154, 225 entrepreneur, 67, 73, 190, 202–203, 225 environment, 31, 33, 78, 81, 115, 131, 139, 165, 206–210, 213, 218, 225, 237 environmental, 41, 44, 129, 225 impact, 44, 225 standards, 41, 225 equity, 40, 56, 212, 225, 237 expert employees, 25, 225 external, 31, 34–35, 38, 54–55, 57, 78, 89–90, 114, 117–118, 165–167, 170, 206, 208–209, 211, 225–226 customers, 38, 54, 225–226 environment, 78, 165, 206, 208–209, 225 market, 31, 35, 54, 72, 84, 132, 190, 206, 209, 225–227 stakeholders, 8, 31, 34, 38, 78, 84, 89–90, 117–118, 165, 186, 197, 211, 225 expectations, 118, 225 suppliers, 8, 38, 114, 225 F Facebook, 12, 17, 37, 68, 127, 141, 160, 225 factories, 26, 68, 154, 156, 161, 178, 225 factors for success or failure, 225 in each organisation model, 225 finance, 35, 40, 42, 48, 72, 75, 79–80, 82–83, 89, 138, 140, 204, 212, 222, 225 bank loans, 40, 225 bonds, 40, 212, 225 equity, 40, 212, 225 personal funding, 40, 225 venture capital, 40, 225 financial, 25, 27, 38, 40–41, 46–47, 49, 69–74, 76, 78, 83–84, 88, 118, 120, 131, 144 investment, 25, 40, 70, 144, 157, 203, 225 outputs, 40, 225, 234 performance, 25, 27, 40–41, 60, 70, 225 resources, 3, 25–27, 47, 49, 70, 72, 157, 178, 186, 225 stakeholders, 25, 27, 38–41, 46–47, 50, 69–70, 72, 88, 127, 225, 234 strength, 25, 70–71, 112, 115, 131, 225 first stage in organisation design, 1, 21, 225 describe work, 225 foreign exchange, 129, 225 foundation business model, 27–28, 31, 49, 53, 60–61, 177, 189, 226 elements, 27–28, 53, 226 INDEX minimum activities to be completed, 226 work choices to be agreed, 226 franchisee, 35, 87–88, 226 franchises, 34, 47, 226 front/back hybrid design, 111, 226 functional, 30, 55–56, 72–73, 75–80, 82– 86, 99, 101, 145, 147, 191–192, 205–206, 209, 223, 226, 231 Organisation Design, 80, 226 roles, 72, 79, 83, 192, 206, 226 stakeholders, 30, 55, 72, 145, 205, 226 teams, 30, 55, 73, 75–77, 82–85, 99, 101, 147, 191–192, 205, 223, 226, 231 fund managers, 40, 226 future growth, 226 future organisation, 58, 173, 226 allocating work, 226 processes, 226 design, 58, 172–173, 226 benefits, 226 best practices, 173, 226 blueprint, 226 choice of model, 226 criteria, 173, 226 elements, 58, 226 phase, 226 implementation, 226 blueprint, 226 of change, 226 customer base, 226 design model, 226 organisational change, 226 strategic direction, 226 team to deliver products or services, 226 value chains, 226 work design, 226 adaptations, 226 G General Electric, 12–13, 54, 141, 154, 226 control its destiny, 226 external competitors, 54, 226 external customers, 54, 226 an external market, 226 must be a profit centre, 54, 226 geographical, 75, 92, 94, 96, 110, 115, 120, 129, 132, 134, 137, 189, 221, 226, 231 design model, 134, 221–222, 226 locations, 81, 92, 96, 115, 129, 132, 137, 152, 207, 221, 226 global, 1, 12–15, 17, 27, 45–46, 48, 58– 59, 63, 66, 68, 119–120, 127–128, 132–141, 143–162, 210–212 design organisation, 48, 155, 157, 227 leaders, 5, 27, 46, 58, 138, 210–212, 227 market, 13, 17, 24, 27, 36, 132, 137, 139, 144, 147, 150, 156, 160, 162, 226–227 organisation model, 136, 141, 147, 157, 227 capital strength, 227 investors, 227 leaders, 227 listed shareholding, 227 reasons for failure, 227 returns to shareholders, 227 success, 227 organisations, 5, 12–13, 15, 17, 24, 58, 66, 68, 134–140, 144, 150–154, 156, 159–162, 201, 210–211 strategic centre, 53, 58–59, 63, 66, 135–136, 181, 192 globalisation, 3, 44, 102, 109, 132, 134, 165, 186, 215, 227 globally dominant organisation, 14, 227 Google, 13, 68, 134–135, 137, 141, 227 government, 22, 25, 33, 38, 40–41, 44, 48, 129, 134, 137, 141, 149, 152–153, 157–158, 227 centralised role in economy, 227 investors, 40, 227 legislative stakeholder, 41, 227 needs to balance regulation and business costs, 227 Grolsch Brewery, 153, 227 group business units, 96, 227 growing bands of leadership, 17, 227 growth, 13, 15–17, 70–72, 75–77, 80–81, 90–91, 105, 107–108, 137–139, 142–147, 149–157, 159–160, 162, 203, 211 models, 8, 13, 16–17, 52, 60, 80, 142, 150–151, 153, 159–160, 162, 165, 227, 233, 239 path, 13, 227 pattern, 13, 227 phases, 31, 227, 234 regions, 105, 227 stages, 8, 16–17, 81, 108, 127, 151, 191, 227, 233 steps, 13, 153, 159, 162, 227, 239 strategy, 52, 91, 108, 142, 147, 150, 165, 168–169, 171, 227 H hazardous products, 44, 227 223 INDEX head office, 58, 89–90, 95, 98, 114, 116–117, 119–121, 139, 149, 168, 174, 180, 184, 221, 227 structure, 90, 117, 119, 121, 149, 180, 184, 227 Heinz, 155–156, 227 holding company, 135, 140–141, 227 human resources, 68, 75, 79, 82, 215, 227 management, 68, 75, 79–80, 215, 228 I 224 idea, 13–14, 17, 21, 23, 67, 71, 73, 76, 87, 94, 107, 202–203, 211, 228, 232 to something different, 21 image, 34, 45, 75, 87, 89, 118, 122, 228 building, 45, 228 implementation, 9, 15, 93, 171, 174, 176, 178, 180, 187–194, 196–198, 210, 226, 228, 241 approaches, 9, 189, 228 processes, 93, 180, 187, 190, 193, 198, 226, 228, 241 implementing designs, 2, 163, 228 income, 31, 54–57, 70, 72, 77, 79, 81, 137–138, 144, 161, 202, 204, 208, 237, 239 centres, 31, 54–56, 58, 63, 77, 79, 81, 105, 119, 168, 208, 228, 237 independent organisation, 34, 97, 138, 151, 228 indirect stakeholders, 44, 228 industry associations, 41, 228 information, 74–76, 79–80, 106–107, 110, 112, 123, 134, 186–187, 189, 191–192, 195, 201, 204–205, 228, 230–231 technology, 74–75, 79, 110, 123, 228 integrating units, 58, 228 divisions or regions, 58, 228 interested parties, 44, 228 internal, 7–8, 26, 28–30, 32, 36, 38, 76, 78–80, 84, 86, 120, 122, 170–171, 200–202, 224–225 change, 7, 86, 145, 167, 170–171, 201, 224, 228 communication, 129, 204, 228 management processes, 183, 228 processes, 8, 14, 26, 28–30, 36, 61, 95, 129, 171, 183, 228, 236 international organisations, 127, 228 design models, 228 internet, 74, 81, 106–107, 127, 135, 160, 228 sales distribution model, 81, 228 investment, 24–25, 40, 70, 72, 86, 122, 133, 135, 138–139, 141, 143–144, 192–194, 202–203, 211–212, 228 in technology, 24, 228 investors, 40, 118, 138, 140, 144, 192, 210, 213, 227–228, 236 move funds to another investment, 228 support the organisation, 40, 228 IT, 47, 103–104, 114, 120, 122, 125, 161, 165, 171, 175, 183, 185, 191, 194–196, 228 infrastructure, 61, 183, 228 investment, 194, 196, 228 platform, 47, 228 services, 47, 113–114, 175, 183, 228 systems, 114, 144, 161, 165, 175, 185, 191, 194, 196, 228 J job security, 145, 228 K key, 16–17, 37–39, 41, 52, 54, 61, 70, 95–96, 116–117, 139, 190–191, 193, 202–203, 205–206, 211 business leaders, 32, 229 customers, 39, 106, 122, 229 design element, 139, 229 roles, 61, 73, 86, 190–191, 229 services impacting profit management, 116, 229 stakeholders, 17, 37–41, 49, 52, 61, 70, 117, 193, 202, 229 strategic choices, 152, 229 knowledge, 3, 5, 7, 10, 31, 75, 149, 173, 183, 204–206, 214–215, 229 management, 75, 149, 183, 204, 206, 229 L labour laws, 41, 229 language, 93, 122, 129, 222, 229 larger organisations, 5, 7, 23, 40–41, 45, 68, 75, 93, 98, 103, 114–115, 144, 147, 150, 201 largest, 13, 15, 17, 58, 87, 89, 110, 112, 116, 134, 136–137, 141, 150, 152, 154 business units, 89, 110, 116, 151, 229 organisations, 13, 15, 17, 27, 58, 87, 89, 112, 134, 136–137, 141, 150, 152, 229 laws and regulations, 20, 229 INDEX leaders, 5–7, 16–17, 23, 25, 27, 30, 32, 71–72, 75–76, 137–139, 176–178, 189–190, 193–194, 204–206, 208–212 choices, 5, 23, 27, 96, 152, 181, 229 choose work their organisation conducts, 229 decisions on price of products, 229 leadership, 15–18, 54–56, 60–63, 85–86, 89–92, 138–142, 148–150, 164–165, 170–171, 180–182, 185–189, 191–197, 202–204, 206–210, 219–223 accountability, 16, 58, 60–62, 85, 89, 91, 139, 170, 217, 229, 236 choice of process, 26, 229 choices, 8, 26, 29, 46, 49, 99, 164, 178, 181, 193, 229 decisions, 7, 16, 46, 49, 97, 140–141, 146, 173, 176, 180, 189, 202–203, 208–209, 217, 229 expectations, 15, 17, 52, 135, 150, 173, 176, 229 focus, 55, 86, 91–92, 101, 117, 138, 140, 142, 206 incompetence, 202 numbers, 17 in organisations, 117, 140, 215, 229 positions, 140, 149 processes, 8, 26, 46, 90, 99, 101, 146, 167, 176, 180, 189, 194, 198 roles, 15, 61–62, 76, 86, 150, 165, 187, 192–193, 220, 237 structures, 46, 62, 91, 138–139 support, 8, 18, 54, 56, 65, 85, 117, 164, 167, 187–188, 192–193, 196–197, 204, 206, 212 team, 55–56, 62–63, 76, 78–79, 85–86, 89–91, 117, 149, 170, 176–177, 181, 185–186, 203, 208–209, 219 team structures, 62 work, 7–8, 17–19, 55, 58–59, 63, 75–76, 117, 164, 177–178, 181–182, 185–189, 191–195, 197–198, 214, 234 lean support services, 175, 229 legal, 20–22, 38, 41–42, 46, 61–62, 67–68, 70, 88, 92, 117–118, 131, 133–134, 136–138, 229, 233–234 contracts, 42, 230 entity, 20–22, 138, 230, 233–234 options, 22, 230, 233 experts, 42, 230 legislation, 21, 33–34, 41, 44–46, 48, 62, 78, 92, 129, 131, 136, 166, 222, 230, 240–241 legislative stakeholders, 41, 230 set standards for sector or industry, 230 less developed countries, 36, 230 levels of management, 6, 76, 230 leverage, 25, 94, 139, 161, 230 life cycle, 81, 91–92, 94, 107–108, 222, 230, 236 design model, 91, 107, 222, 230 limited liability company, 22, 230 LinkedIn, 160, 230 litigation, 46, 230 loan repayments, 40, 230 locations, 14, 17, 47, 80–81, 87, 90, 92, 96, 113, 115, 128–133, 137, 191–192, 221–222, 226 longevity, 152, 199, 230, 234 of a design, 199, 230 and performance, 230 lower complexity model, 147, 230 M machinery, 26, 43, 230 manage change, 189, 230 management, 14–15, 28–30, 55–59, 65, 70–80, 83–85, 111–114, 118–120, 145–149, 151–155, 182–183, 189–192, 203–204, 228–231, 233–236 accountability, 31, 58, 85, 91, 230, 236 centres, 56, 58, 63, 74, 77–79, 112, 120, 125, 168, 197, 228, 230, 236 coordinates activities, 15, 65, 75, 230 delivers some work for stakeholders, 15, 230 information, 55, 74–76, 79–80, 107, 112, 118, 145, 149, 189, 192, 201, 204, 228, 230–231 practices, 29, 84, 146, 206, 230–231 processes, 28–30, 76–77, 85, 90, 95, 145–146, 167, 172, 183, 197, 215, 219, 226, 228, 230 structures, 59, 84, 91, 119–120, 125, 152, 172, 220, 230, 236 tasks, 68, 71, 112, 230 team, 14–15, 55–56, 58, 63, 65, 71–73, 75–78, 83–85, 90–91, 94, 145, 148–149, 191–192, 202–204, 219 managers, 9, 15, 40, 55, 65, 73, 77–78, 83, 115, 151, 176, 204, 223, 226, 230–231 manufacture of products, 230 manufacturing, 21, 29, 55, 73, 81, 84, 101–103, 120, 132, 141, 156, 158, 161, 230 capacity, 156, 230 processes, 29, 81, 101, 230 225 INDEX 226 market, 13–15, 22–24, 26–27, 31–32, 60–61, 89–91, 115–116, 125–126, 142–144, 158–160, 166–167, 177–179, 199–200, 212–213, 220 advantage, 6–7, 24, 100, 144, 166, 220, 230 analysis, 23, 140, 230 changes, 7, 13, 31, 35, 70, 81, 116, 125, 132, 144, 146, 204, 206, 209, 212 conditions, 133, 147, 167, 211, 231 forces, 7, 115, 231 leaders, 7, 23, 32, 68, 72, 96, 126, 177, 199, 204, 206, 211–212, 227, 231 norms, 115, 178, 231 positioning, 166, 231, 234 requirements, 90, 231 segments, 110, 231 share, 7, 32, 72, 80, 90, 101, 126, 137, 144, 147, 156, 199, 210, 213, 220 space, 24, 231 stalls, 68, 158 structures, 27, 91, 101, 110, 220, 230 value, 6, 13, 17, 60, 67–68, 109, 116, 129, 132, 137, 164, 167, 212, 220, 226 marketing, 111, 120, 143, 204, 231 marketplace, 125, 231 markets, 12, 14, 24–27, 34–36, 60, 90, 92, 101–102, 104, 128, 138–139, 143–145, 158–161, 177–178, 231–232 Marks & Spencer, 158–159, 231 mass production, 154, 231 matrix structure, 83–84, 103, 231 mature business, 14–15, 63, 75–79, 83– 87, 90–91, 94–95, 119, 135–136, 147–149, 152–155, 158–161, 192, 204, 207–208, 231 mature business model, 15, 63, 73, 75, 77–79, 85–86, 91, 95, 116, 119, 147, 158–160, 210, 231 dedicated supervisory level, 15, 231 functional, 73, 76–77, 79, 85, 147, 231 best practices, 231 organisation design, 79, 231 structure, 147, 231 teams, 77, 85, 147, 231 geographical location, 231 information flow, 231 internal systems, 231 management information, 231 matrix structure, 231 new level of work to manage managers, 231 outsourcing activities, 231 process structure, 231 profitability, 77, 85, 119 quantity of work, 231 teamwork, 63 mature business unit, 76–77, 90–91, 94, 128, 148–149, 158, 161, 192, 195, 207–208, 231 organisations, 75, 93, 161, 192, 232 maturity, 76, 81–82, 94–95, 107–108, 218, 232 measures of organisations’ success, 232 criteria, 232 mergers, 47, 93, 135, 139, 143, 211, 222, 232 and acquisitions, 47, 93, 139, 143, 222, 232 military structures, 152, 232 minimum wage, 44, 232 mixed organisation designs, 110, 232 model, 14–18, 59–61, 63–82, 85–87, 89–99, 101–108, 114–120, 126–130, 132–143, 145–152, 157–160, 164–168, 188–192, 199–211, 217–222 change, 18, 48, 74–75, 81–82, 132, 145–150, 164–168, 173–174, 189–192, 195, 208–209, 219–220, 226, 228, 232–233 complexities, 132, 189, 213, 232 designs, 14–15, 81–82, 108, 111, 127–128, 132, 134, 172, 177, 180, 189, 192, 195, 199–200, 232 of organisation design, 14, 18, 38, 43, 62–65, 67, 95, 104, 136, 165, 200, 213, 232 organisations, 13–17, 66–70, 72, 74–75, 89–90, 95–96, 115–118, 126–129, 132–143, 150–152, 199–201, 209–211, 215–218, 232, 238–240 models, 1–2, 6–9, 12–14, 16–18, 52–53, 60–66, 91, 99, 102–103, 150–153, 159–162, 164–165, 194–196, 220–221, 232–233 with more than one business unit, 232 with one business unit, 232 of organisation design, 1, 14, 18, 52–53, 62–65, 67, 165, 170, 232 monopolies, 25, 232 multidisciplined team, 55–57, 99 multifunctional leadership team, 55, 76, 232 multinationals, 232 attention from pressure groups, 232 INDEX N new, 35–36, 47–49, 80–81, 89–96, 126– 127, 140–146, 148–150, 154–156, 159–161, 164–169, 171–177, 185, 187–190, 193–196, 200–201 business unit, 31, 34, 77, 89, 91–95, 106, 115, 117, 124, 126–127, 149–150, 165–166, 168, 195, 232 challenges, 36, 119, 132, 189, 198, 232 customers, 21, 35–36, 39, 67, 92, 106, 146, 159, 161, 232 idea for product or service, 232 markets, 12, 36, 47, 60, 75, 86, 96, 102, 104, 106, 144–145, 160–161, 168, 232 opportunities, 21, 23, 25, 31, 36, 49, 127, 142, 165, 168, 173, 175, 232, 241 organisation design, 7, 13, 16, 52, 94– 95, 126–127, 142–143, 159–160, 164–167, 170–172, 176–177, 185, 195–196, 214–215, 231–232 model, 16, 48, 52, 60, 89, 94–95, 127, 142–143, 160, 164–166, 172, 176, 196, 200, 231–233 work design, 232 organisations, 7, 10, 12, 15–16, 25, 36, 47–48, 126–127, 140, 143–144, 156, 159–161, 168, 200–201, 214–215 products, 35, 60, 81, 101–102, 126–127, 133, 143, 145, 154–156, 159–161, 166, 190, 195, 208 niche markets, 160, 232 number of employees, 43, 49, 68, 72, 82, 85, 148, 172, 200, 232, 234–235 O operating model, 18, 61, 233 operational, 8, 30–31, 86, 89, 116, 120–121, 146, 159, 184, 206, 210, 231, 233 accountability for decisions, 31, 233 improvements, 8, 233 operations, 79, 85, 89, 99, 102, 127–128, 133–134, 150, 161, 166, 177, 233 organisation, 1–3, 5–9, 12–50, 52–65, 67–162, 164–215, 217, 219–222, 224–229, 231–235, 237, 239, 241 broad theme of work, 22, 233 change, 37, 46–48, 52, 80–82, 85–86, 126, 131–132, 145–150, 164–171, 173–178, 184–185, 187–198, 208–210, 219–220, 232–234 choice of work, 20, 25–28, 38, 49, 233 choose its location, 20, 233 culture, 27, 30–31, 33, 90, 94, 116, 118, 122, 125, 133–134, 146, 149, 177, 187, 233–234 current design, 7, 48, 52, 126, 142, 145, 147, 171–172, 199, 233 definition, 12, 21, 94, 112, 233, 241 deliver some form of work, 21, 233 design, 1–3, 5–9, 12–18, 48–50, 52–54, 59–65, 77–82, 93–100, 102–118, 123–136, 155–162, 164–203, 206–210, 213–217, 219–222 approach, 35, 84, 99, 102–104, 110, 114, 132, 134, 165, 170–171, 173, 177, 182, 196, 199 blueprint, 170, 178, 186, 188–189, 193–194, 198, 226, 233 complexity of work to be delivered, 233 and costs, 98, 126, 133, 172, 187, 233 criteria, 23, 29, 85, 167, 169–171, 173–179, 186, 188, 197, 200, 226, 233–234 elements, 18, 27, 29–30, 32–33, 53–54, 57, 59–62, 78–80, 97, 99, 112–114, 178–183, 188–189, 193–194, 226 expectations of parent organisation, 233 key to success, 233 macro models, 8, 233 measures of success, 233 options, 5, 7–8, 52–53, 63, 80, 95–96, 98–99, 103, 112, 169–170, 175, 177–178, 180–181, 186, 192–193 outputs, 5, 20, 72, 99, 170, 173–174, 188, 196–198, 202, 225, 234 picture, 13, 18, 49, 52–53, 59, 62, 110, 180, 188, 194, 234 service elements, 33, 79–80, 112–114 strategic tool, 196 success and failure, 2, 8, 199–201, 208 failure, 2, 8–9, 35, 41, 70, 73, 95, 162, 198–202, 204–211, 213, 225, 227, 233 changing customer demands, 201, 233 at each stage of complexity, 233 high costs, 233 lack of competitiveness, 201, 233 lack of funding, 201, 233 lower levels of performance, 233 goals, 7, 23, 28, 67, 117, 170, 174, 239 227 INDEX 228 growth, 13, 15–17, 75, 90–91, 105, 107–108, 138–139, 142–147, 149–150, 152–154, 156–157, 159, 162, 176–177, 203 stages, 8, 16–17, 108, 191 hierarchy, 15, 32, 62, 65, 68, 72, 77, 86, 123, 140, 205 leadership, 15–18, 54–56, 60–63, 85–86, 90–92, 140–142, 149–150, 164–165, 170–171, 173–174, 176–178, 180–182, 185–189, 193–197, 206–210 legal entity options, 22 management, 14–15, 28–30, 55–59, 70–80, 84–85, 90–91, 97–98, 111–114, 118–120, 122–123, 146–149, 157–158, 182–183, 189–192, 203–204 models, 1–2, 6–9, 12–14, 16–18, 52–53, 60–65, 91, 99, 102–103, 150–151, 159–162, 164–165, 194–196, 208–209, 213–214 objectives, 12–13, 23 picture, 13, 18, 32, 49, 52–53, 58–59, 62, 73, 110, 180, 188, 194, 233 position, 5, 8, 23, 39, 48, 105, 113, 150, 178, 184, 208 positioning, 22, 125, 166, 203, 207, 211 produces valuable work, 234 register as legal entity, 234 roles, 3, 5–6, 61–63, 67–68, 72–73, 76, 79, 82, 145, 148, 150, 190–195, 206, 224, 226 scope of a design process, 234 stakeholders, 17, 20–22, 25–28, 30–50, 69–72, 77–78, 87–88, 90, 97–98, 127–128, 147, 167–168, 193–194, 196–197, 225–226 structure, 26, 61, 72, 74–75, 82–84, 110, 117–119, 121, 123–125, 147, 149–151, 184–185, 195–196, 231, 234–235 transitions, 148–149, 234 way it wishes to manage, 20, 234 work design, 16, 18, 32, 97–99, 170, 178, 186, 188–192, 194, 198, 222, 224, 226, 232, 234 work outputs, 71, 173, 234 organisation’s, 14–16, 23, 33–34, 36–37, 39–42, 45–46, 73, 106–107, 118–122, 164–166, 178, 180–181, 193–194, 196, 198–199 activities, 7, 14–15, 46, 54, 234 board, 118, 133, 139, 234 change processes, 194, 234 competitiveness, 42, 234 competitors, 14, 49, 166, 196, 201, 208, 234 complexity, 7, 15, 22–23, 36, 49, 120, 162, 201, 234 culture, 33, 122, 234 customer stakeholders, 234 design criteria, 23, 171, 175, 234 employees, 14, 41, 59, 73, 234 financial stakeholders, 40, 234 funding options, 234 growth, 16, 40, 49, 52, 130, 162, 176 intent, 23, 237 legal agreements, 234 levels of leadership, 234 location of its work, 46 market, 23, 45, 90–91, 130, 164, 166, 199 number of employees, 49, 200 performance, 14, 26, 40, 77, 90–91, 166, 199, 201, 208 relationship with suppliers, 42 size, 36, 49, 73, 98, 120, 199 strategy, 7, 23, 26, 52, 59, 98, 165–166, 171, 193–194, 196–197, 201, 208 process, 165–167, 171, 193–194, 196, 208 supplier stakeholders, 42 systems, 98, 165, 189 turnover, 40, 208 value, 14–15, 21, 29, 37, 39–40, 54, 73, 77, 119, 121, 164, 224 work, 7–8, 14–15, 21–23, 26–27, 36–37, 40–41, 45–46, 98, 162, 164–166, 178, 180–182, 193–194, 197, 234 outputs, 20–22, 28–30, 32, 39–40, 43–45, 68, 71–72, 83, 90, 99–100, 173–174, 188, 196–198, 225, 233–235 outsourcing, 35, 47, 60, 80–81, 113, 115, 128, 131, 168, 175, 182, 206, 210, 231, 235 services, 47, 60, 80–81, 113, 148, 175, 206, 235 work, 35, 60, 80, 115, 131, 168, 175, 182, 206, 231, 235 to suppliers, 35, 235 owners, 49, 62, 68, 71, 190, 201, 217, 235 ownership, 76, 78, 92, 131, 136, 138, 176, 218, 235 owning a dominating resource, 235 P parent company, 87, 120, 133–134, 137, 165, 235 partnership, 22, 133, 155, 235 INDEX patents, 25, 235 payment of tax, 33, 235 payroll size, 119, 235 people, 6, 10, 12, 14, 18, 20–21, 25–26, 29, 61, 67–68, 119, 141–142, 185, 191, 195–196 deliver the work, 5–6, 18, 20, 26, 61, 235 in an organisation, 5–6, 18, 21, 29, 42, 185, 196, 235 structure, 6, 12, 26, 61, 77, 83, 185, 195–196, 235 performance, 25–27, 31–32, 40–41, 60– 61, 72–73, 76–77, 80–81, 89–91, 117–118, 122–124, 177, 199–201, 204–205, 207–208, 212–214 forecasting, 60, 235 management, 55, 57–58, 70–71, 73, 76–77, 85, 122–123, 146, 201, 215, 230, 233–235 personal assets, 67, 144, 235 PetroChina, 141, 235 physical, 26–27, 74, 78, 81, 107, 109, 156, 159–160, 178, 235 assets, 26–27, 78, 160, 178, 235 products, 26–27, 81, 107, 156, 159, 235 planned growth areas, 60, 235 plans, 23, 43, 72, 85, 97, 108, 159, 188, 190, 206, 217, 225, 235 potential, 32–33, 40–41, 44, 69, 73–74, 112, 115, 126, 128–130, 143–144, 146, 161–162, 207–208, 210, 213 employees, 41, 43–44, 128, 224, 235 for profits, 40, 235 stakeholders, 40, 44, 69, 130, 162, 225, 235 preferred suppliers, 47, 122, 235 pressure groups, 44–45, 232, 235 standards, 45, 235 price(s), 235 private investors, 40, 236 procedures for work, 236 process, 24, 28–30, 82–84, 99, 101–102, 114, 164–167, 169, 171–175, 177–179, 181–189, 191, 193–197, 207–208, 234–236 approach, 82–84, 99, 102, 132, 171, 179, 182, 196, 223, 236 change, 132, 143, 164–171, 173, 178, 184–185, 188–191, 193–194, 197, 220, 234, 236 design approach, 99, 171, 236 innovation, 24, 178, 231, 236, 240 levels, 24, 132, 178, 201, 236 management, 28, 30, 83–84, 172, 179, 183, 190–191, 220, 231, 236 models, 2, 29, 49, 82, 91, 102, 169, 172, 179, 194, 220, 223, 233, 236 options, 29, 49, 143, 169, 175, 177–179, 181, 189, 193, 197, 224, 236, 240 structures, 84, 101, 106, 172, 174–175, 184, 191, 220–221, 236 team, 30, 82–83, 99, 143, 172, 181, 185–186, 191–194, 205, 208, 224, 231, 236, 241 value, 26, 28–29, 43, 49, 55, 82–83, 99, 114, 172, 179, 184, 191–192, 223, 235–236, 241 processes, 26–30, 36, 60–61, 90, 92–93, 98–99, 101, 125–127, 166–167, 171–173, 182–185, 189–191, 193–198, 228–230, 240–241 internal, 8, 14, 26, 28–30, 36, 61, 95, 129, 171, 183, 228, 236 strategic, 28, 106, 125, 166, 182, 184, 196, 236 technical, 61, 167, 182, 206, 236 that produce work, 236 product(s), 236 appeal, 236 development, 236 facility design, 236 innovation, 236 leadership, 236 life cycle, 236 and pricing, 236 quality, 236 quantities, 236 ranges, 236 scope, 236 productivity, 34, 81, 236 professional associations, 41, 236 profit, 53–55, 85–86, 89, 91, 93, 97, 112, 116, 118, 175, 204–206, 208, 226, 229, 232 accountability, 85, 89, 205, 233, 236 centres, 31, 55, 93, 197, 208, 236 and loss, 60, 204, 236 profitability, 28, 30–32, 53–54, 56, 85, 89–91, 93, 96–97, 107, 116–117, 119, 146, 204, 207–209, 211–212 decisions, 31, 56, 85, 97, 146, 204, 208–209, 211, 236 management, 28, 30, 56, 77, 85, 91, 97, 107, 116, 146, 189, 204, 231, 236 profits, 40, 47, 54–55, 70, 72, 78, 90–91, 146, 150, 235–236 project, 54, 57–59, 82–84, 103–105, 120, 170, 176, 180–181, 184–186, 192, 197, 222, 236, 241 management, 83–85, 120, 192, 236 229 INDEX units, 54, 57–59, 104, 120, 180, 184, 222, 236 public limited company, 22, 237 Q quality, 21, 24, 31–32, 34, 39, 69–70, 75, 78, 101, 104, 109, 112, 131–133, 174, 236–238 control, 31–32, 34, 75, 237 of products, 34, 39, 69, 101, 237 of services, 183, 237 quantity, 23, 26, 33, 36, 41, 43, 79–80, 109, 113, 121, 185, 205–206, 231, 234, 237 of control, 237 of government regulations, 33, 237 of resource assets, 237 of rules and regulations, 33, 237 of work, 8, 13, 36, 104, 185, 205–206, 231, 237 R 230 rapidly changing environment, 237 raw materials, 99, 183, 237 redefine organisation’s intent, 237 reduced costs, 34, 237 regions, 58, 94, 96, 104–106, 126, 139, 175, 227–228, 237 regulations, 20, 33, 38, 41–42, 87, 98, 131, 137–138, 190, 229, 237 regulatory accountabilities, 237 reliability of service, 39, 237 renowned organisations, 52, 237 research and development laboratory, 237 resources, 24–27, 47, 49, 54–55, 72, 94, 98–99, 104–105, 111, 142, 157, 178, 186–187, 213–217, 225 return on capital or equity, 56, 237 revenue, 47, 55–56, 59–60, 78, 81, 86, 97, 160, 168, 181, 231, 237 centres, 56, 78, 168, 237 department, 55, 59, 181, 237 risk, 33–34, 70, 73, 113, 118, 125, 130, 132, 161, 165, 203, 205–207, 209, 213, 218 role of stakeholders, 1, 36, 237 rules and procedures, 33–34, 133, 237 S safety, 35, 41, 44, 183, 237 and health laws, 41, 237 sales, 26, 31, 35, 55–56, 68, 70–75, 78–82, 155–156, 161, 165, 168, 191, 204, 208, 223 teams, 73, 75, 81–82, 101, 165, 174–175, 223, 237 volumes, 31, 56, 101, 109, 204, 237 SBU, see strategic business unit segmented customer base, 55, 237 senior leadership, 89, 140, 150, 170, 192, 196, 237 roles, 150, 192, 237 team, 89, 170, 237 separate business units, 29, 92–93, 237 service, 32–33, 42, 54–60, 78–80, 82–83, 95–98, 100–101, 103–104, 112– 116, 122–123, 179–186, 190–192, 207, 222–223, 237–240 centres, 54–56, 58, 78–79, 112–113, 126, 168, 186, 222, 237–238 components, 141, 238 delivery, 39, 55–56, 80, 82, 97, 103–104, 112–114, 116, 183–184, 191, 232, 238–239 departments, 55–59, 75, 79, 114, 131, 141, 238 distribution, 35, 73, 75, 80, 238 elements, 32–33, 35, 54, 56–57, 59, 78–80, 98, 112–115, 120, 172, 179–183, 185, 192, 233, 238 options, 35, 96, 103, 112, 114, 123, 144, 181, 186, 222, 233, 238 provider, 113, 238 provision, 42, 58, 113, 115–116, 238, 240 quality, 32, 39, 78, 101, 104, 109, 183, 238 structure, 82–83, 101, 113, 118–119, 123, 149, 180, 182, 184, 239 units, 57–59, 95–96, 98, 100–101, 112–116, 118, 122–123, 126, 148–149, 167–168, 172, 179–180, 184–185, 207, 222 value, 28, 54, 56, 73, 79, 96–98, 100, 109, 112–114, 116, 127, 184, 190–192, 218–219, 223 servicing customers, 68, 238 shareholders, 40, 44, 77, 133, 210, 227, 238 shareholding, 92, 138, 140, 211, 227, 238 share value, 137, 200, 238 simple businesses, 238 skills, 69, 73, 100, 121, 132, 142, 202, 210, 224, 238 small, 5, 7–8, 12–14, 45–46, 48, 67–69, 71–75, 85–87, 91–92, 109, 113–114, 139–140, 144, 191–192, 202–203 INDEX business, 54, 63, 65–68, 71, 75, 86–87, 91–92, 94, 101, 103, 109, 113–114, 176, 192, 202–203 unit, 54, 63, 66–67, 86, 91–92, 94, 101, 113, 125, 176, 192, 238 organisations, 5, 7–8, 12–14, 17, 68–69, 72, 74–75, 109, 139–140, 143–144, 151–152, 160, 169, 202, 238 startup model, 63 smaller organisations, 30, 39, 47, 75, 78, 96, 112, 134, 143, 201, 209, 238 social media, 45, 160, 238 society, 12, 21, 31, 38, 44, 131, 139, 147, 214, 238 interest topics, 44, 238 sourcing work, 238 internally or externally, 238 specialisation, 75, 79, 82, 92, 101, 113, 132, 238 specialised business units, 92, 238 specialist services, 81, 115, 238 speed, 17, 31, 112–113, 127, 156, 159–160, 214, 238 of decision making, 238 of growth, 17, 127, 156, 159, 238 Spotify, 160, 238 stability, 16, 90, 129, 144, 164, 213, 238 staff, 98, 113, 118–119, 121, 123–124, 129, 131, 145, 194, 203, 208, 238 turnover, 208, 238 stakeholder, 17, 23, 25–26, 32, 35–39, 41–42, 44–48, 69–70, 89, 91, 128–129, 147, 149–150, 238, 241 categories, 38, 238 demands, 23, 26, 48, 85, 128–129, 238 groups, 25, 32, 36–39, 44–48, 69, 89, 129, 139, 161, 187, 238, 241 management, 147, 149, 201, 238 mix, 52, 239 satisfaction, 46, 239, 241 support, 128, 147, 149, 167, 187, 196, 239 work, 17, 25–26, 32–33, 36–38, 45–48, 52, 69, 89, 129, 161, 173, 187, 197, 239 stakeholders, 17, 20–22, 25–28, 30–50, 69–72, 77–78, 87–90, 127–128, 145–147, 167–168, 186–188, 193–194, 225–226, 228–230, 234–235 expectations, 17, 22, 36–37, 43–44, 52, 77, 118, 225, 239 needs, 30, 35–36, 39, 42, 46, 48–49, 52, 92, 127, 130, 166, 168, 170– 171, 173, 187–188 numbers, 17, 25, 37, 48, 160, 239 output requirements, 38, 44, 239 satisfaction, 27, 31, 46, 211, 239, 241 level, 27, 239 standard brand or service, 239 standardisation, 30–35, 134, 180, 219, 239 in products, 34, 239 standards, 21, 33–34, 41, 45, 75, 83, 104, 109, 133, 217–218, 225, 230, 234–235, 239–240 startup model, 63 stock exchange, 137, 158, 239 strategic, 52–54, 56, 58–59, 94–95, 97–98, 116–119, 121, 135–136, 138, 140, 142–143, 180–182, 184, 208–209, 221–222 business unit (SBU), 54, 239 direction, 98, 140, 192, 208, 221, 226, 239 goals, 28, 56, 117, 170, 174, 233, 239 plan, 52, 170, 239 units, 58–59, 64, 66, 89, 94–95, 98, 116–118, 121, 135–136, 179–180, 184, 208–209, 221–222, 237, 239 strategy/ies, 239 delivery, 239 development, 239 translate intent into organisation goals, 239 structure(s), 239 suborganisations, 151 supplier, 12, 14, 25, 38, 42, 70, 115, 122, 131, 133, 235, 239 mix, 14, 239 stakeholders, 25, 38, 42–43, 69–70, 235, 239 suppliers, 35–36, 38, 42, 44, 46–48, 74–75, 88, 114–115, 128–129, 131, 207, 219–220, 222, 225, 234–235 organisation is the customer, 42, 239 service provision, 42, 240 support, 28–30, 52, 54–57, 77–81, 85–87, 112–113, 125, 128–131, 164–165, 174–175, 179, 184, 187–190, 192–193, 195–197 processes, 8, 28–30, 61, 95, 98–99, 125, 167, 184, 187, 195, 197, 229, 240 services, 15, 18, 55–56, 79–81, 95, 98, 112–114, 120, 123, 125, 175, 190, 192, 224, 228–229 synergies, 15, 29, 86, 89, 95, 123–125, 129, 168, 209–210, 240 synergy rules, 118, 121–122, 240 231 INDEX T 232 tax, 33, 40–41, 115, 117–118, 129, 131, 134, 140, 235, 240 legislation, 33, 41, 129, 131, 240 payments, 40, 134, 240 team(s), 240 members, 240 model, 240 technology, 14–15, 24, 74–75, 79–81, 92, 98–100, 109–110, 114, 134, 159–161, 166, 175, 207, 222, 228 design, 60, 74–75, 79–81, 99–100, 102, 108–110, 134, 166, 175, 185, 187, 200, 215, 219, 222 model, 15, 60, 74–75, 79, 81–82, 99, 101–102, 108, 123, 134, 166, 219–220, 222, 228, 240 innovation, 24, 31, 81, 231, 240 process, 24, 28, 83, 99, 102, 114, 143, 166, 207, 231, 240 Tesla, 141, 240 theme of work, 6, 22, 233, 240 theories of work, 9, 240 theory to compare organisations, 240 assess the design options, 240 Toyota, 157–158, 240 trade standards, 41, 240 turnover, 16, 40, 43, 49, 74, 138, 160–161, 208, 235, 238, 240–241 Twitter, 127, 160, 240 type of work, 20, 23, 35, 71, 92, 185, 240 U ultimate design decisions rest with CEO, 240 unions, 240 units, 57–59, 63–66, 86–87, 89, 91–96, 98–102, 107–108, 110–118, 120– 126, 147–149, 167–168, 179–180, 207–210, 221–223, 236–240 usefulness of the product, 39, 240 V value, 28–29, 37–40, 53–56, 71–73, 75–77, 79–83, 96–100, 112–114, 116–119, 127–130, 160–162, 184, 190–192, 223–224, 240–241 chains, 29, 39, 90, 146, 167, 190, 192, 223, 226, 240 models, 29, 240 performance, 29, 146, 240 creation, 28, 56, 77, 79, 92, 97–99, 112–113, 119, 121, 164, 168, 179, 191–192, 241 of profit margins, 40, 241 variety of work, 36, 69, 81, 241 venture capital, 40, 225, 241 Virgin, 141, 241 virtual corporation, 109, 241 vision and mission statements, 23, 241 volume, 5, 13, 17, 20, 46–47, 52, 88, 96, 144–145, 161, 168, 202, 206, 239, 241 of turnover, 161, 241 of work, 5, 13, 17, 20, 46, 96, 104–105, 145, 168, 191, 241 W waste, 46, 241 Wikipedia, 136, 241 work, 5–10, 13–38, 45–49, 58–61, 67–86, 94–99, 103–105, 129–134, 145– 149, 164–168, 170–175, 177–200, 204–207, 218–226, 229–241 activity, 5, 52–53, 68, 76, 178, 184, 190, 192, 222, 241 analysis, 27, 46, 52, 171, 173, 200, 214, 241 choices, 5, 8, 20, 22, 26–27, 29–30, 36, 49, 96–97, 99, 164, 181, 183, 207, 229 complexity, 3, 6–8, 10, 13, 17, 36–37, 46, 65, 80, 94–95, 162, 195, 214, 221–222, 233–234 as a cost to the business, 33, 241 creates new opportunities, 21, 241 definition, 21, 179, 233, 241 delivery, 18, 21, 26, 71, 76–77, 80, 82–83, 91, 97, 99, 103–104, 191, 221, 223–224, 239–241 design, 5–10, 13–18, 20–24, 35–38, 48–50, 52–53, 59–61, 78–82, 94– 99, 125–127, 164–175, 177–180, 182–200, 220–226, 230–234 focus, 6, 80–81, 94, 96, 98, 102, 114, 117, 167–168, 173–174, 179, 184, 186, 188, 190 implementation, 9, 174, 178, 180, 187–192, 194, 196, 198, 226, 241 process, 24, 99, 114, 121, 164–167, 169, 171–175, 178–179, 182–189, 191, 193–196, 234, 236, 240–241 project team, 170, 186, 241 expectations, 15, 17, 22, 36–37, 52, 77, 173, 233, 239 opportunities, 21, 24, 36, 49, 89, 149, 165, 168, 173, 232, 241 in an organisation, 5–8, 14, 17–21, 23, 25, 27–31, 33–36, 40, 43, 46, 59– 60, 162, 164, 182–185, 224–225 INDEX performance, 25–27, 32, 40, 43, 45, 73, 77, 80–81, 199, 204–205, 207, 220, 224–225, 230, 234–235 and processes, 114, 145, 149, 166, 173, 180, 191, 198 provides direct value to customers, 21 required by legislation, 21 satisfaction, 27, 46, 232, 239 valuable measurable output, 21 workers, 15, 73, 77, 154, 241 workforce, 44, 48, 71, 210, 241 age, 44, 241 health, 44, 241 working differently, 241 world markets, 102, 128 [Created with TExtract / www.Texyz com] 233 FROM START-UP TO GLOBAL Over the last 30 years, Michael Bellerby has worked in over 100 organisations designing strategies, implementing operational improvements and radically changing performance This experience has taught him that organisation design remains pivotal to the success of a company Organisation Designs provides leaders with the knowledge needed to assess the appropriateness of their designs The book helps leaders to thoroughly evaluate the work needed within an organisation, and in doing so make choices on how to divide work among the different parts of the organisation If the design is too complex for the work required, costs will be too high, and if the design is too simple, it will inhibit the delivery of the work This book provides a framework of the appropriate options available to leaders, depending on the volume of work Organisation Designs is not an ‘academic’ book but rather a guidebook for business leaders to use to design their organisations The book is not full of new theories but rather pulls together existing ones that offer a logical explanation of the progression of designs from a small to a large organisation This is an important book for leaders of organisations of all sizes, as well as their advisors All concepts discussed are straightforward and clear in their potential application They have been developed through observing real organisations and the descriptions used have been tested with line managers ORGANISATION DESIGNS FROM START-UP TO GLOBAL michael bellerby ORGANISATION DESIGNS ORGANISATION DESIGNS FROM START-UP TO GLOBAL dynamic designs for growth michael bellerby ... PREFACE PREFACE Organisation Designs from Start- Up to Global is the second in a series of three books that aim to empower business leaders and specialists to effectively design organisations that.. .ORGANISATION DESIGNS FROM START- UP TO GLOBAL dynamic designs for growth Copyright © KR Publishing and Michael Bellerby All reasonable steps have been taken to ensure that the... always a link back to a person or small team who created a great idea, which grew them into the global organisations they are today This growth pattern – from an idea to a global organisation – can