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Jay Galbraith's Star Model

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Margarita Bulyga

on 19 February 2013

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Transcript of Jay Galbraith's Star Model

Strategy Structure Processes People Rewards Jay Galbraith's Star Model™ presented by Margarita Bulyga Agenda: Historical context
Overview of the model
Case study
My critique of the model
Exercise Historical Context Dr. Jay Galbraith is an internationally
recognized expert on Global organization
design, with 40 years of experience
The Star Model™ was developed in 1960s
In 1978 he founded Galbraith Management Consultants
He is an Affiliated Research Scientist at the Center for Effective Organizations at the University of Southern California
He worked as a Professor at the International Institute for Management Development
in Lausanne, Switzerland. Strategy Structure Processes People and Rewards Case Study My Critique Exercise References Behavior Skills and
mind-sets Information Power Motivation Direction Culture Performance Specialization

job rotation in low- to moderate-skill tasks
in-depth knowledge in high-skill tasks
greater speed and motivation and lower coordination costs Yesterday Today Distribution of power

centralization vs. decentralization
shifts to units with direct customer contact Choosing structure to fit the strategy 1. Functional Structure 2. Product Structure 3. Hybrid Product and Function
Structure General manager Research and
development Operations Product
marketing Finance Human resourses CEO Electronic
instruments Medical
instruments Computers Finance Human resourses Commercial airplane
group Research and
development Operations Product
marketing General manager New product
development
process Order
fulfillment
process Customer
acquisition and
maintenance R&B Operations Marketing Engineering Quality Operations New product teams Product teams Customer teams Small-size, single -product line
Undifferentiated market
Scale or expertise withing the function
Long product development and life cycle
Common standards Product focus
Multiple products for separate customers
Short product development and life cycle
Minimum efficient scale for functions or outsourcing The strategy includes elements that cannot be adequately addressed by Product or Function Structures alone Best seen as an alternative to the functional structure
Potential for new processes and radical change to processes
Reduced working capital
Need for reducing process cycle times 4. Process Structure Management processes:
Lateral coordination
diversity
rapid change
interdependence of units
a process focus
speed
The benefits of Lateral processes
decisions - more, better, faster, and different kinds
flexible, increased adaptation to constant change
The costs of Lateral processes
the people may not have skill and knowledge of top managers (training helps)
time
increased level of conflict
Vertical & Horizontal (Lateral) General manager Engineering
design Assembly Wing

Fuselage

Cockpit

Avionics

Tail Wing

Fuselage

Cockpit

Avionics

Tail Wing

Fuselage

Cockpit

Avionics

Tail Wing

Fuselage

Cockpit

Avionics

Tail Manufacturing
process design Procurement mirror Image
functional
structure Three types of Lateral processes
informal, voluntary
organization
formal groups
integrators Example Right people in right positions
training and development
The leader as a decision shaper rather than a decision maker
By listening and implementing feedback, management can show good faith and earn trust
To reduce people's resistance to change
clear roles and responsibilities
efficient information system
performance measures and rewards
career paths
when change designed, people have to be informed and their reactions have to be assessed all structural levels
Rewards have to be aligned with the strategy
If people complain about compensation, the design of change should start from Rewards policies Managing director
at SF office Creative Project management Google+

Audi

Gap

USPS

Visa Technology Client services User
experience Business
development Human
resources Data science Strategy Supply Finances CEO Informational
technology Recruiting Regional
Offices Google+

Audi

Gap

USPS

Visa Google+

Audi

Gap

USPS

Visa Google+

Audi

Gap

USPS

Visa Google+

Audi

Gap

USPS

Visa Google+

Audi

Gap

USPS

Visa Amsterdam

Paris

Berlin

London

Tokyo AKQA is reportedly the largest independent digital agency in the U.S. if not the world The Star Model™ appears to be simple and easy to present to leaders and manages
All important elements in organization are covered
It is more appropriate for a large scale change
Top management has the key role of integrator
There are concrete techniques that would help a consultant in the process of integrating strategy, structure, and processes
It covers newer tendencies, such as virtual corporations and networked organizations Think of your own organization
what type of structure does it have?
what are the lateral processes?
how well the structure and processes support the strategy? Galbraith, J.R. (1995). "Designing Organizations: An Executive Briefing on Strategy, Structure, and Process". San Francisco, CA: Jossey-Bass Publishers.
AKQA Official Website. Retrieved from http://www.akqa.com
50 Awesome Quotes on Possibility. (2013). "Woman Reaching for Star" Image retrieved from http://www.ideachampions.com/weblogs/archives/2013/01/1_start_by_doin.shtml February 19, 2013 The Star Model -function or specialty Functional
-product line Product
-customer segment Market
-georgaphical area Geographical
-work flow process Process Departmentalization Structure type Shape Organization of an airplane manufacturer
Full transcript