Organizational Design and Restructuring
5
Galbraith's Star
Strategy structure processes rewards people
4
Restructuring Options
Downsize rightsize delayer reengineer
1
Key Tool
Spans and layers analysis
Galbraith's Star Model and Strategic Alignment
Galbraith's Star Model connects five organizational elements that must align for effective execution. Strategy drives structure. Never restructure without strategic clarity. The five points (strategy, structure, processes, rewards, and people) must reinforce each other. When one element changes, the others must adapt or the organization loses coherence.
Restructuring Options and Modern Models
Restructuring options range from downsizing (headcount reduction) to rightsizing (aligning headcount to workload) to delayering (removing management levels) to reengineering (fundamentally redesigning work processes). Agile squad models, shared services design, and job architecture frameworks represent modern approaches to organizational design that prioritize flexibility and cross-functional collaboration.
practice org design decision scenarios
SCP-level SJIs on restructuring rationale, spans and layers, and strategic alignment
Practice Org Design QuestionsExam Traps
strategy before structureStrategy before structure always
The exam tests whether you restructure based on strategic clarity or cost pressure. The SCP answer always starts with the business strategy and designs the structure to execute it. Restructuring without strategic alignment is organizational malpractice.
Flattening has manager overload risks
Flattening the organization sounds efficient until managers have 20 direct reports and cannot develop, coach, or evaluate any of them effectively. The SCP presents data on optimal spans of control for the specific work type.
Restructuring requires change management
Restructuring is not just an org chart exercise. It disrupts reporting relationships, career paths, team dynamics, and psychological safety. The SCP treats every restructuring as a change management challenge requiring communication, support, and transition planning.
Strategic SJI Angle
CEO wants to flatten the organization to reduce costs. The SCP presents spans-and-layers analysis showing optimal structure for the business strategy, not just cost reduction. The trap answer approves flattening because the CEO requested it. The strategic response provides data-driven counsel on what the strategy actually requires.
Cost-Driven Restructuring
Restructuring to cut costs without strategic clarity creates a cheaper organization that still cannot execute its strategy.
Strategy First
Define what the organization needs to accomplish. Then design the structure that enables it. Never the reverse.
An architect asks what the building is for before drawing plans. A hospital, a school, and a warehouse all need different designs. The SCP asks what the organization's strategy requires before designing the structure.
The architect designs load-bearing walls, floor plans, and circulation paths based on purpose. The SCP designs reporting lines, decision authority, coordination mechanisms, and career frameworks based on strategy.
Sometimes the building needs renovation because its purpose changed. Converting a warehouse to offices requires structural changes. The SCP manages restructuring as a transformation, not just a cost exercise.
Removing walls to save on materials without considering whether the building will still stand. Flattening the org to reduce headcount without considering whether managers can handle the expanded spans.
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