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Case Study

Introduction to organizational system analysis

By Michael D. Watkins

8 pages

October 2024

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Reference: IMD-7-2607

This note summarizes the STAR+ Organizational System Model as a powerful tool for leaders to diagnose, design, and transform organizations in rapidly changing environments. It outlines six key elements of an organizational system: Strategic Direction, Structure and Decision-Making, Processes and Systems, People and Capabilities, Measures and Rewards, and Culture. The note emphasizes the importance of understanding these elements and their interdependencies for effective organizational management and transformation. The STAR+ model, building on Jay Galbraith’s seminal work on organizational systems, helps leaders navigate organizational complexity, diagnose issues, ensure coherence among elements, and guide transformation efforts. It stresses the critical role of culture and its interaction with other system components, particularly measures and rewards and leadership behaviors. A case study of Stefanie Eisenberg at Global’s North American Operations illustrates the model’s practical application. It demonstrates how systemic issues can undermine performance even in seemingly stable organizations and highlights the importance of sequencing change efforts.

Learning Objective

Understand the six key elements of the STAR+ Organizational System Model and their interdependencies
Apply the model to diagnose organizational issues and identify areas for improvement
Recognize the importance of cultural alignment in organizational transformation
Develop strategies for sequencing change efforts in organizational transformation
Utilize systems thinking to enhance organizational performance and resilience

Keywords

Organizational Design, Business Transformation, Organizational Culture, Transformation, Change Management, Organizational Development

Type

Generalized Experience

Available Languages

English

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