Determine the Degree of Structural Centralization
Identify the locus of decision making in your organizational structure.
RETIRED CONTENT
Please note that the content on this page is retired. This content is not maintained and may contain information or links that are out of date.Without a focus on the degree of structural centralization:
- An organization’s structure may not match up with the increasingly complex business environment.
- Organizational functions may fall into an extreme of centralization and not align with the business strategy.
Determining a degree of structural centralization for your organization will:
- Align the organization's structure directly to its strategic goals.
- Help employees cope with business environments that are becoming increasingly more complex and uncertain.
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Module 1: Identify Restructuring Strategy and Requirements
The Purpose
- Gather organizational information that is necessary for a successful restructuring implementation strategy.
Key Benefits Achieved
- Greater understanding of the organization and focus areas for restructuring.
- Decisions that must be made to carry out restructuring are devised through collection of current inputs and outputs in the organization.
| Activities: | Outputs: | |
|---|---|---|
| 1.1 | Review organization and function-level strategy. |
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| 1.2 | Assess restructuring drivers’ alignment with strategy. |
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| 1.3 | Determine structure design requirements. |
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| 1.4 | Document high-level work activities and related inputs/outputs. |
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Module 2: Assess Degree of Centralization
The Purpose
- Identification of the degree of centralization that is necessary in a restructuring effort.
Key Benefits Achieved
- Established position on function-based centralization achieved based on decision making and culture.
| Activities: | Outputs: | |
|---|---|---|
| 2.1 | Determine the current and future degree of centralization for the organization. |
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| 2.2 | Identify current organization culture (competitive, innovative, traditional, cooperative). |
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| 2.3 | Identify the impacts of complexity and uncertainty. |
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