The Goal-Centric Model
The Goal-Centric Model
of Organizational Design
(c) 2023 by Denis SunnySTOP BLAMING COMPETITORS, GEOPOLITICS, AND OTHER EXTERNAL FORCES.
INSTEAD, DRIVE ORGANIZATIONAL DESIGN TOWARD THE OPTIMIZATION GOALS
OF YOUR ORGANIZATIONAL SYSTEM, THEREBY CREATING CAPABILITIES
ESSENTIAL FOR ACHIEVING YOUR STRATEGY.
The Goal-Centric Model introduces a crucial new element - the Optimization Goals - placed in the model's center. They are the North Star of the organizational design process. These goals direct the creation of the vital organizational capabilities essential to address the most devastating challenges on the way toward strategic business objectives.
The model offers clear guidance on how organizations' management should approach organizational design. It starts with Strategic Goals, which inform the setting of Optimization Goals. These are determined by identifying the organization's major challenges and the essential capabilities needed to address them. Following this, all key elements of organizational design—People, Rewards, Processes, and Structure—are carefully crafted with the single purpose of achieving synergy in creating those essential capabilities set by Optimization Goals.
The absence of clearly defined and implemented Optimization Goals jeopardizes organizational effectiveness because it lacks the necessary capabilities to overcome the obstacles that stand in the way of achieving strategic goals.
The model illustrates the interconnectedness of organizational design, culture, and performance through the arrows in its outer rings (see the red dotted-line circle in the picture below). These arrows represent the causality between org design, culture, and performance.
This way, the model mirrors the same causality found in the Submarine Model (see the dashed lines). Organizational Design is the foundation influencing the creation of Behavioral and process patterns observable within the organization - this is how Culture is shaped. Changes in these patterns, in turn, lead to improving or worsening Outputs and Outcomes thereby driving the organization's overall Performance.
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Goal-Centric Model © 2023 by Denis Sunny
is licensed under CC BY-NC-ND 4.0