7.7 Galbraith's Star Model
Aligns strategy, structure, processes, rewards, and people for organisational effectiveness. Launch on platform.
What is it?
Galbraith’s Star Model, developed by organisational theorist Jay Galbraith, is a practical framework designed to help leaders and organisations align their internal structures and strategies effectively. The Star Model clearly outlines five key elements essential for organisational design, ensuring these dimensions reinforce one another to drive strategic success.
Why is it useful?
Applying Galbraith’s Star Model helps you to:
Achieve strategic alignment: Ensure every aspect of your organisation supports and reinforces your strategy. Clarify organisational roles and processes: Clearly define roles, responsibilities, and decision-making processes. Improve organisational effectiveness: Spot and fix misalignments that hinder performance and strategy execution. Enhance agility and responsiveness: Adapt quickly by aligning organisational elements dynamically as conditions change.
How does it work?
Galbraith’s Star Model identifies five critical dimensions that must be clearly aligned:
Strategy
Characteristics: Clearly defines the organisation’s vision, goals, competitive positioning, and direction.
Approach: Establish strategic clarity and ensure all organisational actions align directly with strategic objectives.
Example: Becoming a global leader in renewable energy, prioritising market innovation.
Structure
Characteristics: Clearly defines organisational hierarchy, roles, responsibilities, reporting lines, and decision-making authority.
Approach: Design structures explicitly supporting your strategy, optimising coordination and efficiency.
Example: Centralised decision-making for cost leadership; decentralised teams for innovation-driven strategies.
Processes
Characteristics: Clearly outlines workflows, coordination mechanisms, and information-sharing practices.
Approach: Develop and refine processes that explicitly facilitate strategy execution and organisational collaboration.
Example: Streamlined product development processes, integrated customer feedback loops.
Rewards
Characteristics: Clearly defines incentives, metrics, performance systems, and reward structures aligned with strategic goals.
Approach: Align reward systems explicitly with strategic priorities, encouraging desired behaviours and outcomes.
Example: Rewarding collaboration and innovation through incentives; aligning bonuses with sustainability goals.
People
Characteristics: Clearly defines the talent, skills, capabilities, and organisational culture needed to deliver the strategy.
Approach: Attract, develop, and retain talent that explicitly matches strategic and cultural requirements.
Example: Recruiting engineers for innovation-focused organizations; developing leadership skills for global expansion strategies.
Turning Galbraith’s Star Model into Action
To practically apply the Star Model:
Assess alignment clearly: Regularly evaluate the five elements to ensure alignment and reinforce strategic clarity.
Adjust proactively: Dynamically adjust structures, processes, rewards, and talent management as strategic needs evolve.
Communicate effectively: Clearly explain how organisational elements support strategy, ensuring understanding and commitment across teams.
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