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    Class 4:
    The Strategic Design Lens

    • Objectives
    • Review the basic concepts and approaches of the strategic design perspective on organizations
    • Understand strategic design concepts by applying them to the HP case

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    Strategic Design Lens

    • Sees organizations as social systems designed to achieve strategic goals

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    Strategic Design
    begins with …

    identifying the strategy

    After Identifying the Strategy…
    3 Building Blocks of Strategic Design

    • Grouping
    • Linking
    • Alignment

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    Grouping

    • Drawing boundaries around clusters of tasks or activities to define jobs, departments, processes
    • Differentiation
    • Grouping structures
    • Functional
    • Divisional
    • Product
    • Market
    • Geographic
    • Functional/Product Matrix
    • Front/Back

    Linking

    • Creating links across organizational boundaries
    • Integration
    • Examples include
    • Liaison roles
    • Cross-functional teams
    • IT systems

    Alignment

    • Positioning elements of the organization (such as rewards and incentives) to provide access to the resources and the incentives to do the tasks assigned
    • Examples include
    • Performance measurement systems
    • IT systems
    • Training & development programs
    • Financial, human, capital resources

    HP Case Study

    HP Case: Discussion Questions

    • What are the strategies/strategic direction of HP?
    • What are the benefits of the front/back grouping to HP?
    • What are some pitfalls of the front/back grouping?
    • What linking mechanisms has HP put in place?
    • What linking mechanisms should HP put in place?
    • What alignment of resources has HP put in place?
    • What resource alignments should HP put in place?

    Strategic Design Lens

    • The organization is seen as a constructed system to achieve certain goals.
    • The Strategy of the organization
    • The 3 key design tools – grouping, linking, alignment – are all needed.
    • The role of the manager is a strategist, an organizational architect.

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    Team Projects

    Criteria for Organizational Analysis Projects

    • The initiative must already be underway, but not in existence for too long a period of time (@ 1 year or less than 1 year)
    • The initiative must involve a reorganization or change in the structure (for ex., different reporting relationships or new departments)
    • At least 6 individuals who are involved in the initiative must be individually interviewed (in person, via Zoom or Skype or other video format following health guidelines)
    • You can choose to do this individually or within a group
    • Groups must be @5 people

    Examples of Organizational Analyses

    • ProMedica
    • Reorganization of purchasing function to centralize it
    • ProMedica
    • Introduction of a new department-acute health care delivery at home
    • UT Dept. of Environmental Health
    • Combination of 2 departments to create a new group
    • Flower Hospital
    • Reorganization of the nursing structure/changing roles
    • Dimensions Credit Union
    • New C-suite level added with new reporting relationships

    Final Paper: Grouping Structure Examples

    Because the residents left, they were replaced by Nurse practitioners. Previously, there was a resident available 24 hours to manage care for the stroke patients of behalf of the Attending MD. Since the change, the residents were replaced by 2 nurse practitioners, who rotate days. These NPs only available to care for the strokes patients 8a-5p. Since there is no one in house overnight to care for the patients, the nurses must call the Attending MD at home if they need anything that cannot wait until morning. Because the Neuro/Stroke Attending MD cannot be in house at all times, the ICU team may take over care for critical stroke patients in the Medical/Neuro ICU while the Hospitalist (Attending Medicine MD) may take over care for noncritical stroke patients on the Neuro/Stroke MedSurg Unit.

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    Team Structure

    Grouping: Original Alignment

    MSP Analytics Manager

    MSP Business Analysts (15)

    Reporting Analysts (10)

    Reporting Analyst Manager

    Analysts (6)

    RPO R&A Manager

    RPO Technology & Analytics Director

    President

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    Team Structure

    Grouping: New Alignment

    Business Intelligence Manager

    BI Consultant

    BI Consultant

    BI Consultant

    BI Analyst (4)

    BI Analyst (4)

    BI Analyst (4)

    Reporting Analyst Manager

    Reporting Analyst Lead

    Reporting Analysts (7)

    COO

    Technology & Analytics Director

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    Organizational Structure

    Before

    After

    Organizational Analysis Projects

    • Discussion Questions
    • Introductions
    • Why are you interested in this topic?
    • What thoughts do each of you have about a specific organizational change initiative that you could study?
    • What ideas do each of you have about an organization where you could study this topic/initiative?

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