Organisational Development

#3 Elements of the Organisation

As an organisation evolves, the components that make up the organisation  evolve. If you change something in one of the parts, it has a direct effect on the others:

1.The corporate strategy gives meaning and direction.

2.The organisation is the executive power.

  • a) Structure/Roles (Organisational Structure)
  • b) Rules and processes (process organisation)
  • c) People and culture

To illustrate:   

Corporate strategy asks:

  • What are our goals?
  • What is the future we wish to create?
  • What should the company look like in the future?
  • Do we have the right products today? Production? Markets? Finances etc.?
  • What do we see in the Gap analysis?

Organisational  Design asks:

  • Are we correctly structured as an organisation to support the strategy?
  • Does our organisational design maximize the use of our internal resources?
  • Are our processes efficient?
  • Do we have the right policies?
  • Do we have the right competencies? The right culture? The right people?

Golden Management Rule

Even if organisational development is a continuous process, there should be a logic behind it. First comes the development of the corporate strategy, then the OD plan. Not vice versa and not isolated from each other. The two areas must be well-coordinated

The next part will follow very soon!

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