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Designing Effective Organizations: How to Create Structured Networks

ISBN: 978-0-7879-6064-3
370 pages
June 2002
Designing Effective Organizations: How to Create Structured Networks (0787960640) cover image


'Goold and Campbell, leading thinkers on corporate-level strategy, have turned their attention to corporate-level organization design. They bring a rigor to this topic that will help managers wrestling with multiple reporting dimensions, decentralization and cross-unit co-ordination.' Professor Gary Hamel, London Business School. Author of Competing for the Future and Leading the Revolution.
'Campbell and Goold are renowned for discovering entirely new and useful dimensions to seemingly familiar business issues. This book is another shining example. It allows executives to replace politics and personality as the rationales for an organizational design with clear, effective logic and experience.' Thomas H. Davenport, Director, Accenture Institute for Strategic Change. Author of Process Innovation and Working Knowledge.
'A "must read" for managers and consultants. Redesigning the organization is the most powerful and fastest means for aligning decisions and behavior with strategic objectives. Goold and Campbell provide the best and most comprehensive framework for developing and testing the validity of an organizational structure I have seen in recent years. Based on years of research and experience they offer clear principles and a process to guide managers in the many design decisions and trade-offs involved in developing a more effective organization.' Professor Michael Beer, Harvard Business School. Author of The Critical Path to Corporate Renewal.
'Books on organization design tend to fall into one of two categories: those that provide interesting concepts but not help on how to implement them and those that are full of check lists on implementation, based on sterile and over-simplified ideas. Michael Goold and Andrew Campbell have written perhaps the finest example of an exception I have ever seen - a very practical book, with detailed guidelines on implementation, yet based on a rich and sophisticated understanding of the real challenges of organization design. It will be of immense use to all careful readers.' Professor Sumantra Ghoshal, London Business School. Author of The Individualized Corporation and Managing Across Borders.
'As companies search for all sources of competitive advantage, many are discovering that the ability to organize and execute complex strategies is an important one. Campbell and Goold have again provided us with a good process through which leaders can give organizing its deserved focus.' Professor Jay Galbraith, author of Designing the Global Corporation.
'Campbell and Goold bring much needed clarity and precision to the language of organizational design and show how this can help managers avoid the misunderstandings and differing interpretations that frequently undermine new organization structures.' Paul Coombes, Director, Organization Practice Area, McKinsey & Company.
'Organization change is close to the top of many companies' agendas. Goold and Campbell's book equips you with ideas and frameworks to take on the journey. The real-world examples help make it both pragmatic and readable.' Steve Russell, Chief Executive, The Boots Company plc.
'An impressive work. The taxonomy of organizational units and organigram symbols will be especially useful to managers working on structures.' Philip Sadler, Patron, The Centre for Tomorrow's Company. Author of The Seamless Organization.
'Incredibly relevant in helping to pull together a complicated structure based around the dimensions of channels, products, customers and geography - immensely clear and valuable.' David Roberts, Chief Executive, Personal Financial Services, Barclays plc.
'A welcome breakthrough in designing more effective corporate organization structures. The nine design tests of Goold and Campbell are a valuable addition to an otherwise sparse toolkit.' Jim Haymaker, Vice President, Strategy & Business Development, Cargill Inc.
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Table of Contents

1. Structured Networks.

2. The Fit Drivers and Tests.

3. The Good Design Principles and Tests.

4. Simple and Complex Structures.

5. A Taxonomy of Unit Roles.

6. Parenting in Complex Structures.

7. An Overview of the Design Process.

8. Using the Tests.

9. The Design Process in Detail.

10. Twenty-first Century Organizations.
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Author Information

Michael Goold and Andrew Campbell are directors of the Ashridge Strategic Management Centre in London and are acknowledged as leading thinkers on issues of corporate strategy and organization.

The Centre conducts research on large divisionalized companies. It is part of the Ashridge Trust, one of the world's top schools for executive education and development. Prior to establishing the Centre in 1987, both authors were Fellows at the Centre for Business Strategy at London Business School. They have written numerous books together including Strategies and Styles, Corporate Level Strategy and Synergy

Educated at Oxford and Stanford, Michael has extensive consulting as well as academic experience. He worked for a number of years with the Boston Consulting Group, becoming Vice President in 1979.

A Baker Scholar and Harkness Fellow from Harvard Business School, Andrew is currently a visiting professor at City University Business School. Previously he was a consultant with McKinsey and Company.
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The Wiley Advantage

  • A thorough and practical treatment of a key topic - the design of multi-business companies – from two gurus of business strategy
  • Provides a new framework for organization design with the flexibility of a network and sufficient structure - a ‘happy medium’ for best practice
  • Features case studies of major companies including BP, Dow, HP, 3M, Mars, Monsanto, PricewaterhouseCoopers, Philips, Shell and Unilever
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"A few minutes spent thinking about one's own company, using the Goold and Campbell principles, can be very illuminating. At its best, it will lead to real insights about how to reorganise the company. And at the very worst, you can have hours of fun applying the redundant hierarchy test to your colleagues." (Financial Times, 9 May 2002)

"...There are several ways to rebuild the country manager's role, as Michael Goold, of Britain's Ashridge Strategic Management Centre, argues in a new book...the main thing is to define the scope of the job clearly..." (Economist, 10 May 2002)
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