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Designing Organizations

A prescriptive guide to strategic organization design that shows how different business and portfolio strategies require different, aligned combinations of structure, processes, rewards, and people—captured in the Star Model—across business-unit and enterprise levels.

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What it’s about

Designing Organizations distills Jay Galbraith's decades of research and consulting into a practical, top-down method for building high-performing organizations. Starting from the premise that different strategies lead to different organizations, the book uses the Star Model—strategy, structure, processes, rewards, and people—as a holistic framework for aligning design choices. It traces companies from single-business functional start-ups through related and unrelated diversification, network and reconfigurable forms, and value-adding conglomerates and synergy portfolios, using vivid cases (Nike, IBM, Disney, GE, BMW, RBC, Danaher) to show how lateral processes, integrators, matrix structures, and partnerships coordinate increasingly complex work. It closes by examining how big data and real-time decision making may create a new organizational dimension. For any leader entrusted with stewardship of a complex institution, this book explains not just what to organize but how to align every design lever so people can excel rather than merely cope.

The through-line

Who it’s for
A senior leader or general manager entrusted with the stewardship of an organization who wants to build a high-performing enterprise that excels at executing its strategy.
The problem
Their organization has grown more complex and is misaligned with its strategy and stakeholder environment, so it cannot serve customers effectively. They feel that 'doing what comes naturally' and relying on good people is no longer enough, and they are confused about how to organize amid rising complexity and constant change.
The plan
  1. Clarify your strategy: decide what to do, where to play, and how to win.
  2. Use the Star Model to design structure, processes, rewards, and people as an aligned whole.
  3. Match lateral processes—voluntary, e-coordination, formal groups, integrators, or matrix—to your coordination needs.
  4. As you diversify, choose the right portfolio structure and define how the corporate center adds value.
  5. Build reconfigurability and real-time decision capability to compete when advantages are temporary.
The payoff
An aligned, high-performing organization where people excel and get consistent messages about desired behavior. · The ability to coordinate complex, interdependent work rapidly and to reconfigure as strategy shifts. · A corporate center that adds genuine economic value to its portfolio of businesses.

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