Business Core · Object

Organisation

How the business is put together to act: how work is grouped, who decides what, what is expected of those who lead, and how people take up a change once it has been decided.

The term

What it is

Organisation is the arrangement that turns a group of people into something able to act together. It covers how work is divided into units, how those units are joined up again, who holds which decisions, and what those in charge are expected to do. Mintzberg described every structure as an answer to two opposing needs — dividing labour into distinct tasks and coordinating those tasks again — and that tension runs through the whole object.

It sits in the Business Core beside HR, and the two are easy to confuse. HR is the supply of people and capability: planning, recruiting, developing and keeping them. Organisation is the shape they work within. A plan can have every role filled and still stall because nobody knows who decides, or because two units each assume the other is coordinating.

The object also holds one part of change that had no other address: whether the people whose work changes actually take up the new way of working. The steps of a change programme already live elsewhere in the framework — the diagnosis, the owner, the resourcing, the quick wins, the vision and those who tell it. What remains here is the human side of adoption: who is affected, where resistance appears, and what keeps the change in place once attention moves on.

Why it earns a place

What goes wrong without it

01

Structure decides what is easy

Every grouping makes some coordination cheap and other coordination expensive. Organising by product makes product decisions quick and cross-product decisions slow; the trade-off exists whether or not anyone chose it.

02

Unclear decision rights cost time first

Where two people each believe a decision is theirs, or each believe it belongs to the other, the decision waits. The delay seldom appears as a cause, only as a plan that is running late.

03

A decided change is not yet an adopted one

Many change efforts that disappoint were agreed, announced and funded. What failed came afterwards: people carrying on in the old way because the new one was harder, unclear, or never reinforced.

One level in

The modules within organisation

Four working areas: how work is grouped and joined up, who decides what, what leadership is expected to do, and how people take up change.

  1. Structure

    How work is divided into units and coordinated again: the basis for grouping, the spans and layers of management, and the mechanisms that link units whose work depends on each other.

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  2. Decision rights

    Which recurring decisions exist, who makes each one, who must agree or be asked, and what authority is delegated below the board. Standing allocations, as distinct from the owner of a single initiative.

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  3. Leadership

    What leadership is expected to do in this organisation, how the work changes from one layer to the next, and how leaders are judged against it. Kept to observable work, not personality.

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  4. Adoption

    The human side of change: which groups are affected and how much, how far each has actually taken up the new way of working, what resistance is saying, and what holds the change in place afterwards.

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Across the framework

What it touches

  • HRHR supplies the people and the capability; Organisation is the shape they work within. Structure says which roles exist, and HR’s workforce planning and recruitment fill them.
  • GovernanceOwnership, the board and its reserved matters belong to Governance. The delegated authority schedule in Decision rights begins where the board’s reserved matters end.
  • CultureCulture holds the shared assumptions and norms; Organisation holds the formal structure and decision rights. Anchoring a change in the culture is Culture’s work, not Adoption’s.
  • Tactical goalsOwnership in Tactical goals names the one owner of an initiative and its responsibility split. Decision rights here cover the recurring decisions that exist whether or not an initiative is running.
  • Goal CoreKotter’s steps already sit here: urgency with Strategic goals · Diagnosis, the coalition’s resourcing with Tactical goals · Resourcing, short-term wins with Short term goals · Quick wins, and anchoring values with Purpose · Core values.
  • StakeholdersStakeholders · Engagement sets how each party is informed, consulted or involved. Adoption asks a later question: whether those whose daily work changes have taken the change up.
  • Project managementThe RACI matrix in Project management assigns roles per task inside a project. Decision rights allocate standing decisions across the organisation.

Beyond the framework

Models worth knowing here

The Omnigoal says where this belongs and what it touches. It does not tell you how to think about it — other people have done that, and done it well. These are theirs.

  1. Kotter’s eight-step change model

    John P. Kotter · 1995

    Also known as Leading Change

    Eight steps for changing how an organisation works, beginning with urgency and ending with making the change stick.

    Drawn from watching change efforts fail, the sequence runs from establishing urgency and building a guiding coalition, through a clear vision and communicating it relentlessly, to short-term wins and anchoring the change in the culture. Kotter’s finding was that skipping any step feels faster and reliably costs more later; most efforts fail at the first, because everyone is already busy.

    Reach for it when
    Before a change programme starts, and when one has stalled and nobody can say at which step.
    Where it stops
    It is top-down and linear, and it was drawn from large corporations in the 1990s. Anything genuinely emergent will not wait for step three.

    John P. Kotter, “Leading Change: Why Transformation Efforts Fail”, Harvard Business Review, 1995; Leading Change, HBS Press, 1996.

  2. Situational leadership

    Paul Hersey & Ken Blanchard · 1969

    There is no single right way to lead — the right amount of direction depends on how ready the person is for that particular task.

    Four styles, from telling someone exactly what to do, through coaching and supporting, to handing the task over entirely. The variable is not the person’s worth but their competence and confidence at the task in front of them, which means the same person needs different handling on two different jobs.

    Reach for it when
    When a capable person is being micromanaged, or a new one is being left alone and called a poor fit.
    Where it stops
    Judging someone’s readiness is a subjective call, and the empirical support is weaker than the model’s popularity suggests. It is a way of checking your instinct, not a measurement.

    Paul Hersey & Kenneth H. Blanchard, “Life Cycle Theory of Leadership”, Training and Development Journal, 1969.

  3. The McKinsey 7S framework

    Waterman, Peters & Phillips · 1980

    Also known as The seven S’s

    Seven things that have to agree with one another for an organisation to work: strategy, structure, systems, shared values, style, staff and skills.

    Three of them are hard and can be changed by decision; four are soft and change slowly whatever anyone decides. The argument is that a change to one obliges a change to the others, which is why a new strategy imposed on an unchanged structure, unchanged incentives and unchanged habits reliably comes to nothing.

    Reach for it when
    Before a reorganisation, and when a strategy has been announced twice and nothing downstream has moved.
    Where it stops
    It says what has to agree, not what any of them should be. As a diagnosis it is strong; as a design it is empty.

    Robert H. Waterman Jr., Thomas J. Peters & Julien R. Phillips, “Structure Is Not Organization”, Business Horizons, 1980.

  4. Mintzberg’s organisational configurations

    Henry Mintzberg · 1979

    Also known as Structure in fives, Mintzberg’s organisational structures

    Organisations settle into a small number of coherent forms, and mixing the parts of different forms rarely works.

    Mintzberg describes a handful of configurations — from the simple, founder-led firm through the standardised bureaucracy, the professional organisation and the divisional group to the project-based adhocracy — each with its own way of coordinating work and its own dominant part. The argument is about fit: structure has to suit the work, the environment and the other design choices, and borrowing a practice from another form tends to break the one you have.

    Reach for it when
    When a company has outgrown the way it is organised, and when a structure is being copied from a much larger or very different organisation.
    Where it stops
    The types are ideal forms and most real organisations are hybrids. It helps to see which pull is dominant; it will not draw the organisation chart for you.

    Henry Mintzberg, The Structuring of Organizations, Prentice-Hall, 1979; “Organization Design: Fashion or Fit?”, Harvard Business Review, 1981.

  5. The Star Model

    Jay R. Galbraith · 1970s

    Also known as Galbraith’s Star Model

    Organisation design is more than structure: strategy, structure, processes, rewards and people have to be designed together.

    Galbraith’s starting point was that organisations are information-processing systems, and that changing the boxes on a chart does nothing if decisions, incentives and the people in the roles stay the same. Each policy area is a lever, and the design works only when the levers point the same way — otherwise informal workarounds grow up to do what the formal design does not.

    Reach for it when
    When a reorganisation has been reduced to redrawing reporting lines, and when a new structure is in place but behaviour has not changed.
    Where it stops
    It lists what must be aligned without saying what the right alignment is. Culture and power appear only indirectly, and they are often what decides whether a design takes.

    Jay R. Galbraith, Designing Complex Organizations, Addison-Wesley, 1973; Designing Organizations, Jossey-Bass, 1995. Star Model is a trademark of its owners and is named here only to refer to their work.

  6. Lewin’s change model

    Kurt Lewin · 1947

    Also known as Unfreeze–change–refreeze, Force field analysis

    A settled way of working is held in place by opposing forces, and change means loosening that balance before a new one can form.

    Lewin’s interest was in the forces that keep a group’s behaviour stable — those pushing for change and those resisting it. His practical observation was that reducing resistance often achieves more than pushing harder, since pressure tends to call up counter-pressure. The familiar three steps of unfreezing, moving and refreezing came to stand for this work.

    Reach for it when
    When a change keeps being announced more forcefully and the resistance grows to match, and before a change effort, to name what is currently holding things in place.
    Where it stops
    The tidy three-step model was largely assembled by others after Lewin’s death, and organisations today rarely refreeze at all. The force-field idea travels better than the sequence.

    Kurt Lewin, “Frontiers in Group Dynamics”, Human Relations, 1947; on the model’s later construction, Stephen Cummings, Todd Bridgman & Kenneth G. Brown, “Unfreezing Change as Three Steps: Rethinking Kurt Lewin’s Legacy for Change Management”, Human Relations, 2016.

  7. The ADKAR model

    Jeff Hiatt, Prosci · 2006

    Organisations change only when individuals do, and each person has to pass through the same few conditions in order.

    The model follows one person through a change: first understanding why it is happening, then wanting to take part, then knowing how, then being able to do it in practice, and finally having it reinforced so it lasts. Its usefulness is diagnostic — when a change stalls, it asks at which of these points people are stuck, instead of repeating the announcement.

    Reach for it when
    When a change has been communicated thoroughly and adopted poorly, and when training is being offered to people who have not yet accepted the reason for the change.
    Where it stops
    It looks at individuals, not at the structures and incentives around them; a person can pass every stage and still be defeated by a system that rewards the old behaviour. It is also a commercial method, taught through its owner.

    Jeff Hiatt, ADKAR: A Model for Change in Business, Government and Our Community, Prosci Research, 2006. ADKAR and Prosci are registered trademarks of their owners and are named here only to refer to their work.

These are other people’s models, named here so you can go to the source and use them properly. The Omnigoal is not affiliated with their authors and is not endorsed by them; nothing of theirs is reproduced here — no canvas, no diagram, no wording. Each is described in our own words, with the originator credited, because the framework is a place to put thinking, not a replacement for the people who did it. Model names and trademarks belong to their respective owners and are used here only to refer to the work itself.

Every model in the framework, and where each one belongs

Draw the decisions as well as the boxes. An organisation chart shows who reports to whom and says nothing about who decides, which is where much of the friction lives.

The other objects in the Business Core

HR

The people the organisation has, the people it needs, and how the gap between them is closed through planning, hiring, development and retention. Capability is usually the slowest constraint on a plan to move.

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Value Proposition

What the organisation offers, stated in terms of what it does for someone rather than what the product is. Who the customer is comes from the Market Core; what they are offered is settled here.

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Monetisation

How what is offered turns into money: what is charged for, on what basis, how often and by whom. Whatever the pricing metric rewards is what the organisation will end up producing.

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Core Competencies

The few things the organisation does better than most, that customers value and competitors struggle to copy. What counts as core decides what is kept in-house and what goes to partners.

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Business Assets

What the organisation owns and can put to work, from premises and equipment to intellectual property and accumulated data. The intangible assets are usually the most valuable and the least often listed.

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Operational Systems

The processes and standards that let the organisation do the same work twice without deciding how each time. A process that is routinely worked around is worse than none.

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Partners

The organisations the business relies on for capability it has decided not to build. The decision is the substance, and the exit terms are best agreed while the relationship is still good.

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Stakeholders

Everyone with a claim on the organisation or a stake in what it does, including groups it never chose. The market asks who will buy; this object asks who has standing.

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Finance

Whether the business is profitable, whether it has cash, and whether it can fund what it intends to do next — three questions that are often confused. It also covers how capital is raised, how investments are appraised, and how tax bears on both.

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Supply Chain

Everything between a supplier and a customer: sourcing, moving, holding and delivering. It is where the trade-off between efficiency and resilience is made, usually without anyone deciding it.

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Manufacturing Operations

Where things are actually made: capacity, flow, quality and the maintenance that keeps all three possible. A production system runs at the speed of its slowest step.

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Compliance

The obligations the organisation has no choice about — legal, regulatory, financial, health and safety, and data protection — and the controls that show they are being met. Commitments made above the legal minimum are held under Responsibility in the Vision Core.

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Technology

The tools and systems estate as a whole — software, infrastructure, automation and AI — together with its security and the technical debt it carries. Individual processes are designed under Operational Systems; this object covers what they all run on.

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Governance

Who owns the organisation and how it is overseen: the board, enterprise risk, succession and, eventually, exit. It is where decisions about the organisation itself are taken, rather than decisions within it.

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Innovation

Where new offers and new ways of working come from, how they are tested, and how the decision to scale or stop them is taken. An idea nobody is able to stop is a commitment rather than an experiment.

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