Video summary

Diseño de la organización de la empresa

Main summary

Key takeaways

Educational

Main ideas / lessons

  • Organizational design shouldn’t be rigid or arbitrary

    • Don’t structure the company based on whim, habit, or custom.
    • Avoid overly “mechanical” thinking about roles.
  • Core principle: “structure follows strategy”

    • How you organize employees, define power relationships, set communication systems, and emphasize areas should be determined by:
      • your strategic plan, and
      • your business model.
  • Business model connects market needs with company capabilities

    • The business model defines how the company will serve its market based on:
      • market characteristics, and
      • internal capabilities.
  • Two proposed ways to model/shape the business

    1. Four-pillar business model
      • Identify which pillar(s) are emphasized based on strategy.
      • Establish the necessary connections, processes, and procedures between pillars.
    2. Osterwalder & Pigneur-style “nine blocks” model
      • Use their framework of nine blocks to describe how the business works.
  • The organization must be designed as an integrated system

    • An organization’s job is to transform inputs into desired outputs.
    • Effectiveness depends on achieving high congruence/alignment among four elements:
      1. Work (what tasks get executed and how work flows)
      2. People (skills, knowledge, competencies, behaviors)
      3. Formal arrangements (explicit structure)
        • organizational chart
        • workflows/processes/procedures/systems
      4. Informal organization (relationships and culture that emerge over time)
  • Congruence drives performance; misalignment creates problems

    • Average or poor performance is treated as a symptom, not the root cause.
    • To fix problems, examine causes such as:
      • environment
      • available resources
      • company history
      • strategy
      • mission and vision
    • The gap between expected output and current output indicates what must change.

Methodology / process presented (detailed)

  • Start from strategy

    • Define a strategic plan.
    • From it, define a business model that enables realization of the company’s mission and vision.
  • Evaluate the four organizational elements

    • For each element, determine:
      • Current state (what exists now)
      • Ideal state (what should exist)
    • Identify gaps and hypothesize why they exist by looking for problems caused by low alignment (congruence) among:
      • work, people, formal arrangements, informal organization
  • Use outputs as the test

    • Check whether the organization’s outputs match expectations.
    • If not, the difference reveals where adjustments are needed.
  • Implement adjustments

    • Changes can be:
      • small and specific, or
      • a total restructuring
    • The goal is the right resource arrangement that matches strategy and market conditions.

Types of organizational arrangements (with when they fit)

  • Activity-based (function-focused)

    • Emphasizes:
      • functions
      • work processes
      • skills and knowledge
  • Output-based

    • Organize around:
      • outputs (results/deliverables)
    • Ideal when:
      • there’s a strong focus on product/service
      • selling projects is central
  • Customer/segment-focused

    • Structure around:
      • market segments or customers
    • Used when:
      • customers/segments are a key strategic driver
  • Combination is common

    • Companies often mix these structures internally to implement strategy effectively.

Communication “links” across organizational barriers (practical guidance)

  • Barriers between groups will naturally emerge.
  • Good design ensures communication and “doors” across barriers by creating links that:
    • are established using criteria based on needs
    • are formalized, not left to chance or individual goodwill
    • are supported by:
      • processes and
      • systems

Definitions

  • Processes = sequence of work by individuals/groups toward shared objectives.
  • Systems = tools that enable execution of work required by those processes.

Speakers / sources mentioned

  • Alexander Osterwalder
  • Ev Sper (likely intended as Yves Pigneur, commonly co-authors with Osterwalder on the business model canvas)

Original video