science

Organizational architecture

Organizational architecture is a science topic covered in the lgStudy science library. This page brings together a partial reference excerpt, illustrations, worked examples, real-world applications and a short study plan, so you can understand Organizational architecture rather than just read about it. In short: Organizational architecture, also known as organizational design, is a field concerned with the creation of roles, processes, and formal reporting relationships in an organization. It refers to architecture metaphorically, as a structure which fleshes out the organizations.

Key takeaways

Organizational architecture belongs to science; place it in that map before memorising details.
Learn the definition first, then one example that makes the definition concrete.
Connect Organizational architecture to a quantity you can measure, compute or draw — that is where exam questions come from.
Reproduce the core statement of Organizational architecture from memory before moving on to harder problems.

Reference excerpt

Organizational architecture, also known as organizational design, is a field concerned with the creation of roles, processes, and formal reporting relationships in an organization. It refers to architecture metaphorically, as a structure which fleshes out the organizations. The various features of a business's organizational architecture has to be internally consistent in strategy, architecture and competitive environment. It provides the framework through which an organization aims to realize its core qualities as specified in its vision statement. It provides the infrastructure into which business processes are deployed and ensures that the organization's core qualities are realized across the business processes deployed within the organization. In this way, organizations aim to consistently realize their core qualities across the services they offer to their clients. This perspective on organizational architecture is elaborated below.

Content According to most authors organizational architecture is a metaphor. Like traditional architecture, it shapes the organizational (some authors would say the informational) space where life will take place. It also represents a concept which implies a connection between the organizational structure and other systems inside the organization in order to create a unique synergistic system that will be more than just the sum of its parts. Conventionally organizational architecture consists of the formal organization (organizational structure), informal organization (organizational culture), business processes, strategy and the most important human resources, because what is an organization if not a system of people? The table shows some approaches to organizational architecture.

The goal of organizational architecture is to create an organization that will be able to continuously create value for present and future customers, optimizing and organizing itself. Some under organizational architecture understand building blocks, which are mandatory for the growth of the organization. To design an organization means to set up a stage where the drama of life will take place.

Design

Design process and approach Although the process of organization design isn't necessarily linear, a five milestone process has been created to organize the approach. The five milestone design process is as follows:

Business case and discovery Goal: Build a business case for the change; compare the current state to future state and implications that would be involved. Milestone: at the end of this phase, the problem to be solved is clear. Strategic grouping Goal: Determine what basic grouping of work will create the capabilities necessary to deliver the decided strategy. Milestone: Decided on a structure change which supports the strategy.

Integration Goal: The boundaries created by grouping work must be breached to deliver results for customers, partners and shareholders. Milestone: Pieces have been tied together and defined power relationships. Talent and leadership Goal: Determine the number of positions, the profile of a candidate who will fill those positions, and who will report to the leader of the new structure(s). Milestone: Critical roles have been designed and staffed and defined work for the executive team. Transition Goal: Set the transition plan to account for a logical implementation plan. Milestone: The change is being executed and lead, and closely monitoring the changes to prepare for any adjustments

Reshaping organization structure

Organization design can be defined, narrowly, as the process of reshaping organization structure and roles. It can also be more effectively defined as the alignment of structure, process, rewards, metrics, and talent with the strategy of the business. Jay Galbraith and Amy Kates have made the case persuasively (building on years of work by Galbraith) that attention to all of these organizational elements is necessary to create new capabilities to compete in a given market. This systemic view, often referred to as the "star model" approach, is more likely to lead to better performance. Organization design may involve strategic decisions, but is properly viewed as a path to effective strategy execution. The design process nearly always entails making trade-offs of one set of structural benefits for another. Many companies fall into the trap of making repeated changes in organization structure, with little benefit to the business. This often occurs because changes in structure are relatively easy to execute while creating the impression that something substantial is happening. This often leads to cynicism and confusion within the organization. More powerful change happens when there are clear design objectives driven by a new business strategy or forces in the market require a different approach to organize resources. The organization design process is often explained in phases. Phase one is the definition of a business case, including a clear picture of strategy and design objectives. This step is typically followed by "strategic grouping" decisions, which define the fundamental architecture of the organization - essentially deciding which major roles will report at the top of the organization. The classic options for strategic grouping are to organize by:

… excerpt ends here. Continue reading the full article.

Illustrations

Worked examples

Example 1 — a first encounter with Organizational architecture

Start with the simplest possible case. Write down what Organizational architecture claims or describes in one sentence, then invent the smallest concrete situation in which that sentence is true. In science, the smallest case is usually a single object, a single equation or a single measurement. Check that every symbol or term in your sentence has a meaning in that case.

Example 2 — changing one variable

Take the situation from Example 1 and change exactly one quantity: double it, halve it, or set it to zero. Predict what should happen to Organizational architecture before you calculate. Comparing your prediction with the result is the fastest way to find out whether you understand the idea or only the words.

Example 3 — an exam-style question

Typical questions about Organizational architecture ask you to (a) state it precisely, (b) apply it to given data, and (c) explain a limitation. Practise writing all three answers in under five minutes; the third part is what separates a full-mark answer from an average one.

Applications of Organizational architecture

In research: Organizational architecture appears in science research whenever the underlying quantities have to be modelled precisely. Papers usually cite it as a starting assumption and then explore where it breaks down.
In technology and industry: Engineering practice reuses Organizational architecture in design rules, simulations and safety margins. Knowing the idea lets you read a specification sheet and understand why the numbers look the way they do.
In the classroom: Organizational architecture is common in secondary-school and first-year university syllabi. It links to neighbouring topics Business models, Enterprise modelling, Organization design, so understanding it makes those chapters shorter.
In everyday life: Look for Organizational architecture outside the textbook — in sport, cooking, traffic, electronics or the sky above you. An example you found yourself is remembered far longer than one you were given.

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How to study Organizational architecture in 20 minutes

Read the reference excerpt below once, without taking notes.
Close the page and write down what Organizational architecture means in your own words.
Compare your version with the excerpt and mark what you missed.
Work through the three examples above with pen and paper.
Explain Organizational architecture out loud to somebody else — or to Teacher Smith in the lgStudy chat.

Frequently asked questions

What is Organizational architecture in simple terms?

Why does Organizational architecture matter?

Because it connects several science ideas at once: it gives you a definition you can apply, a quantity you can calculate, and a way to check whether a result is plausible.

How should I study Organizational architecture?

Read the excerpt, restate it from memory, then work through the examples and applications listed on this page. The five-step study plan above takes about twenty minutes.

What does this page cover?

It gives you a compact reference excerpt plus original lgStudy explanations, examples, applications and study material on Organizational architecture.