Chapter 2. Clarify the Strategic Priorities

ORGANIZATION DESIGN IS BOTH A TOP-DOWN AND BOTTOM-UP PROCESS. The top-down task starts with identifying the strategic requirements of the business and selecting a basic organizational architecture to support the strategy. Jay Galbraith's Star Model, shown in Figure 2.1, has been the gold standard for this approach since the early 1970s (Galbraith, 1995).

The Star Model has proven to be a simple yet powerful way to guide leaders as they align structures, processes, measures, and talent to support a strategy. The big idea behind the Star Model is that there is no one right configuration of resources. Different strategies require different organizational forms. Even within the same industry, companies with ...

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