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  Home > Change Management > Organizational Design
  Organizational Design
 

Organizational design is the conceptual model of how an organization works. It brings together technology, structure, culture, systems, and people, and plays an important role in the implementation of the new financial system as colleges and administrative units begin strategizing about how best to cluster their units to ensure efficiency, accountability, data integrity, and process consistency.

EFS is using the Star Model as its systems model. This model is based on the work of Jay Galbraith (this link will take you to a Web site not associated with the University). An illustration of this model is below, along with a description of the model.

University organizational design committees have been formed to partner with EFS organizational design liaisons to identify the organizational design strategies for their campus, college, or administrative unit, and to then ensure those strategies are implemented. The committee members were appointed by their dean, vice president, or chancellor. Cluster directors have now been identified for all units.

As of December 2007, final reports from most organizational design committees have either been received by the EFS project or are signed and ready for implementation by the committees. Next steps for the committees include communicating and implementing their plans between now and March 2008, and then implementing their clusters in April 2008.

A FAQ on organizational design is available, as well as a recorded presentation about organizational design as it relates to the new financial system.

Click to learn about:

 

 
 

Shared Values
A set of shared values, beliefs, or principles that permeate across the institution at every level, including “Transforming the U,” clusters, EFS guiding principles, and focusing on the human factor.

Strategy
The strategy determines direction. It includes the organization’s goals, objectives, vision, and mission. Colleges and administrative units should review their compacts and strategic plans. The following are some questions that should be answered in determining your finance strategy:

  • What do we want our overall strategy and vision to be for our financial operations?
  • What is our core business? Are we solely transactional or do we also provide a high level of strategic financial management?
  • Where are we going? What do we want to be doing in the next two, five, or seven years?
  • What do we want to achieve with our cluster?

The organizational design committees are encouraged to interview or talk with key leaders such as deans, VPs, directors, or managers within their college/admin units to help answer these questions.

Structure
This component defines how an organization looks, what shape it will take, what type of jobs there will be, and how many FTEs will be needed. In addition, the structure should identify reporting relationships and spans of control.

Colleges/admin units will need to determine which cluster model best fits their needs based on size, number of transactions, and type of financial work performed. 

Workforce planning will be an important tool in helping the committees identify the resources needed to fill-in their clusters.

Processes
Processes have to do with the flow of information.  They are the means of responding to information technologies (e.g., budgeting, planning, and work flow).

Committees will have access to the new business processes, workflows, and functional descriptions of the financial activities taking place in the clusters.

Systems
Systems are the tools and technologies that support the people working in core processes.  Examples include classification/compensation, performance management, recognition, IT resources, work space, and equipment.

Colleges and admin units will need to ensure that staff are appropriately classified, that performance management systems are in place, that staff are being recognized and rewarded for their work and also ensuring staff have the tools and technologies need to perform their jobs effectively.

Colleges and admin units should be working closely with the unit’s HR lead in addition to the Office of Human Resources Classification and Compensation unit. 

People
This category includes programs and policies that generate the knowledge, skills, abilities, and talents needed by employees to be successful in their roles. Examples include recruitment and selection, training and development, competencies and performance measures, and succession management. These programs, appropriately
combined, produce the talent that is required by the strategy and structure of the organization to achieve its goals.

The organizational design model and its components are what create the culture of the organization. 

It’s important to keep in mind the following when using the Star Model:

  • Different strategies lead to different organizations.
  • Structure is only one part of the organization’s design.
For an organization to be effective, the policies must be aligned and working with one another.

 

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