6.5 Galbraith’s Star Model
Aligns strategy, structure, processes, rewards, and people for organizational effectiveness. Launch on
What is it?
Galbraith’s Star Model, developed by organizational theorist Jay Galbraith, is a practical framework designed to help leaders and organizations align their internal structures and strategies effectively. The Star Model clearly outlines five key elements essential for organizational 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 organization supports and reinforces your strategy. Clarify organizational roles and processes: Clearly define roles, responsibilities, and decision-making processes. Improve organizational effectiveness: Spot and fix misalignments that hinder performance and strategy execution. Enhance agility and responsiveness: Adapt quickly by aligning organizational 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 organization’s vision, goals, competitive positioning, and direction.
Approach: Establish strategic clarity and ensure all organizational actions align directly with strategic objectives.
Example: Becoming a global leader in renewable energy, prioritizing market innovation.
Structure
Characteristics: Clearly defines organizational hierarchy, roles, responsibilities, reporting lines, and decision-making authority.
Approach: Design structures explicitly supporting your strategy, optimizing coordination and efficiency.
Example: Centralized decision-making for cost leadership; decentralized 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 organizational 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 behaviors and outcomes.
Example: Rewarding collaboration and innovation through incentives; aligning bonuses with sustainability goals.
People
Characteristics: Clearly defines the talent, skills, capabilities, and organizational 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 organizational elements support strategy, ensuring understanding and commitment across teams.
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