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Background note
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Reference no. IMD-7-2607
Published by: International Institute for Management Development (IMD)
Originally published in: 2024
Version: 01.10.2024

Abstract

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.

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Abstract

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.

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