Designing Organizations: An Executive Guide to Strategy, Structure, and Process [Hardcover]

Chapter 1 - Introduction - really sets the stage for the rest of the book. It discusses the six main organization shapers: the increase buyer power; increase in the number of products and services; the Internet; multiple dimensions (functions, products, and geography, but also customer segments, solutions or offerings, and channels and processes); the requirement for a capacity to change; and speed (in bringing products and services to the market).

The following two chapters discuss how companies have to shape their organizational design, strategy, and structure in order how to deal with these organization shapers. Galbraith introduces his copyrighted Star Model (Strategy, structure, people, rewards, and processes), which looks AND sounds very similar to McKinsey's 7-S framework. Chapters 4 and 5 build on these chapter and discuss how organizations have to link their processes to coordination needs and integrate group processes. Then, in Chapter 6 discusses the easily changeable or reconfigurable organization based on the Star Model, which, according to Galbraith, results from the skilled use of three capabilities: (1) forming teams and networks across organizational departments; (2) the use of internal prices, markets, and marketlike devices to coordinate the complexity of multiple teams; and (3) the forming of partnerships to secure capabilities that it does not have. Each of these capabilities are discussed in detail.

The Chapters 7 to 10 are all very current and fashionable. They discuss the organizing around the customer, customer-focused structures, the design of the virtual corporation, and organizing the continuous design process. Although the subjects discussed are important, some of the examples are too long and take up most of the chapters. Some of the examples also do not really apply to every company/organization but are too specific. Still, these are issues that should not be forgotten about, especially organizing around the customer remains important.

I must admit that I am somewhat disappointed with this book, which is written by a leading authority in the field of organizational design. I believe it is especially the title that lets the book down. It is not so much a guide into strategies and structures; it more discusses the organization shapers and the possibilities that companies/organizations have to tackle the organization shapers. I believe that the book is especially weak in discussing organizational design and structures. Galbraith discusses his own Star-model (which reminds me of McKinsey's 7-S framework) and his reconfigurable organization (the learning organization?), but leaves all other models/designs/structures untouched. I have not been generous, the book really deserves a 3.5-star rating. The author uses simple business US-English.