How Do I Choose the Best Organizational Design Strategy?

D. Nelson
D. Nelson
Businessman giving a thumbs-up
Businessman giving a thumbs-up

Professionals choose organizational design strategies to improve their organizations' chances of being successful in the long term. An organizational design describes how decisions are made, which departments and professionals are responsible for various operations and how the chain of command is organized. Choosing an organizational design strategy is the process of designing an organization and improving it as new risks and opportunities arise. To choose the best organizational design strategy, it first is important to determine some basic factors, such as the size of your organization, the transaction volumes you plan on handling, your aspirations for growth and the industry or field in which you work. The best organizational design strategy is specific to an organization yet flexible enough that it can adapt to changing markets and trends.

If you are in charge of a small business, you might find that the best organizational design strategy involves making decisions that are passed on to associates. For instance, if you sell products online and have a home business, you might choose policies that work for you and communicate these ideas to suppliers and assistants. If you are a member of an organization that has several people who make decisions on behalf of the organization, you might want to sit down for strategic planning sessions.

People who work for larger organizations, on the other hand, normally need organizational design strategies that have been determined by boards or committees. In most cases, executives who determine an organization's policies and values are selected by committee members. For non-profit organizations, it is common for presidents to make final decisions. Organizations that are not businesses might also have boards that make decisions and that are headed by individuals who hold chair positions.

If you are interested in finding the best organizational design strategy for a large organization, it might be a good idea to hire consultants or advisers. These are third-party professionals who are contracted to perform research and offer advice. Many people benefit from hiring third parties who can provide advice that is objective and who might offer fresh perspectives.

Consider your market and the needs of your field when you are choosing an organizational design strategy. For instance, if you are developing a strategy for a manufacturing business, you might need to appoint or hire professionals who oversee production and other professionals who deal with suppliers and distributors. You might also need individuals who lead information technology departments. Professionals who have non-profit charity organizations, on the other hand, might need to focus on developing branches that perform outreach in different communities.

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