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Data-driven Organization Design: Sustaining the Competitive Edge Through Organizational Analytics

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CMI Management Book of the Year 2017 - Management Futures Category

Data is changing the nature of competition. Making sense of it is tough; taking advantage of it is even tougher. There is a clear business opportunity for organizations to use data and analytics to transform business performance. Data-driven Organization Design provides a practical framework for HR and organization design practitioners to build a baseline of data, set objectives, carry out fixed and dynamic process design, map competencies, and right-size the organization so everyone performs to their potential and organizations have a hope of getting and sustaining a competitive edge.

Data-driven Organization Design shows how to collect the right data on organizations, present it meaningfully and ask the right questions of it to help complex, fluid organizations constantly evolve and meet moving objectives. Through the use of case studies, practical tips, and sample exercises, it explains in detail how to use data and analytics to connect all the elements of the system so you can design an environment for people to perform, an organization which has the right people, in the right place, doing the right things, at the right time. Whether you are looking to implement a long-term transformation, large redesign, or a one-off small scale project, Data-driven Organization Design will guide you through making the most of organizational data and analytics to drive business performance.

368 pages, Paperback

First published October 28, 2015

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Displaying 1 - 6 of 6 reviews
37 reviews2 followers
April 15, 2022
I really enjoyed this book. I've been looking at organizational design from a software engineering organization perspective, and the authors data driven approach to modelling and understanding current and to be designs was just what I was looking for.
Profile Image for Marks54.
1,566 reviews1,227 followers
November 20, 2018
This is a relatively new grad level text in organization design. I normally do not review textbooks, but this one is fairly good as they go. The author is a consultant with varied project experience. That is both good and bad for the text - generally good here.

The thing to know about the text is that “organization design” is a very old area in business studies and it is one on which most scholars and consultants generally agree on the fundamentals. This is an area concerned with how one goes about putting an organization together and seeing it work. Organization Design (OD) is identifying who reports to whom about what and who gets to make decisions about different areas. In a sense, it is “thinking through” how a firm or organization, expressed in its plan or design of operations, will operate. I am not giving much away to say that this is a dressed up and well ornamented exercises in thinking things through, preferably in advance.

The rub, of course, is how to do this. What is it that needs to be thought about and what constitutes thinking about those items critically and comprehensively? There are general principles, but these have been around for a long time. It is not more standardized because consultants and business academics do not like to present something without some effort to put their own trademark on it. Why give someone else the royalties?

A major issue with organization design is that it really really depends on the particulars of a particular organization so that the general principles are often not of much help. The problem for the textbook writer is how does one write a text about specific independent examples. If you chronicle the examples, your clients will be upset. It you just go with what is general, then the context runs a bit thin and powerpoint frameworks abound. Scylla and Charybdis anyone?

An interesting angle on this text is that the author includes “data driven” in the title. What does that mean? Is it that if one knows all the available information about a firm, then the organizing problem would be reduced? It sound like an effort an argument for “res ipso loquitur”. The trouble is that the facts do not speak for themselves and the theoretical tradition in organizational design is very different. It is much more often an argument of “structure follows strategy” (from Alfred Chandler), with the idea that firms have to know what they are trying to do (their strategy) and that this will guide them in how they organize to achieve their strategy - not data driven at all. Mr. Morrison is well aware of this, and his argument in the book is clearly in the tradition of structure following strategy. “Data driven” here refers more to the allure of new technology and the perkiness of details clouding how to organize in large complex firms. “Data Visualization” is the new watchword. If showing how to do set up analyses on PCs as part of planning for OD can help sell texts, why not.

Overall, the author does a good job and the text is enlightening up to a point. I have two substantive qualms with the general approach that keep me from rating this more highly. First, it would really have helped to present an overall case example or two to show how all of the content in the approach come together in specific circumstances. I know - it is hard to research and write cases, but lots of folks already provide cases (HBS, Ivey, UVA) and some reference to particular case examples would be helpful, especially if the author seeks a B-school audience for the text. A second issue was that the author went out of his way to explain all the ways in which OD efforts could go wrong. Part of the argument in the book is that if there is not full agreement on the need for an OD efforts, then it should not be undertaken. Fair enough - but when is there ever full agreement on anything? It reads like the author is not sufficiently confident of his arguments that he is trying to caveat himself to safety. It did not seem necessarily or valuable.

I do not really recommend business texts to anyone, although for focused needs, this could be a useful resource for planning a change effort.
Profile Image for Fred Cheyunski.
354 reviews14 followers
July 2, 2021
Integrating and IT Enabling Organization Design - Since I have been interested in organizational modeling for some time, it was edifying to get ahold of Morrison’s book where he ties together all the elements of a data driven approach to organization design.

Many of us have been conducting the different aspects of organization design manually, aided by MS Excel, PowerPoint and/or with business process modeling tools, but Morrison shows how these parts can be integrated with new platforms such as graph data bases (see my review of Graph Databases: New Opportunities for Connected Data ).

Some of my favorite parts of book include, Foundations and Core Concepts (Part 1) particularly such as those pertaining to “Creating Hierarchical Data Structures” (pg. 37), “Connecting the System” (pg. 40), and “Visualizing to Analyze” (pg. 46) and other segments that emphasize these aspects (e.g. pgs. 118, 146).

While particular strengths of the book come into play around the detailed baselining and micro design (Part 3), Morrison has chapters the addresses a typical sequence involving macro design (Part 2) and implementation and ongoing operational considerations (Part 4).

Other books may be more complete in their respective areas such as: Kaplan and Norton’s Strategy Maps: Converting Intangible Assets into Tangible Outcomes , Galbraith and Kates’ Designing Your Organization: Using the STAR Model to Solve 5 Critical Design Challenges , Malone’s Organizing Business Knowledge: The MIT Process Handbook (MIT Press) , or Moore’s Escape Velocity: Free Your Company's Future from the Pull of the Past .

However, this book covers the organization design “waterfront” and provides the type of framework required to bring all the various aspects together so they can be used in a concerted fashion. This kind of capability provides the basis for what some have called a "built to change" organization.

Along the way Morrison includes such aspects as competency management and rightsizing, then deals extensively with the practicalities of “how it will work in practice.” Emphasizing throughout that organization design is a continuing journey, he deals with workforce planning, talent management, and additional matters involved with getting things done and sustaining over time.

For strong case support, many visual and “how to” examples, read Morrison’s book for help in making progress in integrating and IT enabling organization design.
Profile Image for Darren.
1,193 reviews63 followers
February 22, 2016
Data is everywhere and businesses are being told to maximise their use of data, analysing, monitoring and implementing everything along the way. Where does one start? How can one be proactive, completive and on top of things? Is there a risk that our business becomes sub-optimal, awash with data along the way that we just don’t use properly? What about the risk of placing blind faith in the “computer” and adopting the “computer says…” mantra?

Maybe this book can help you see the wood from the trees. The author seeks to show how a business, itself a complex organization, can take a mass of complex data and use it in an organised, analytical fashion to intelligently provide competitive advantage and insight. Theory and a practical framework are offered up, although the hard work of implementation and effecting change if necessary still falls to the host organisation. In any case, the astute reader will receive clear encouragement and guidance to make the most of its organisational data. Even if it doesn’t translate into a direct win where you are beating your competition mercilessly – at least at the start – there can still be many advantages in having a more organised, effective, connective and analytical organisation. What is there not to like about that?

It was particularly interesting to see practical examples of data usage and visualisation, as that can really bring the concept and its benefits to life. Such examples can also be used to help win over a possibly uninformed or sceptical board too and bring them onside. Seeing the potential, even ahead of a long march, can be incredibly motivating.

The book felt quite positive and jaunty, despite being a clearly specialist, focussed read. It is worthy of significant consideration! It might be one of those books to buy and wrap in brown paper… don’t need to tip off people where your sudden brilliant ideas have come from, now do you?
Profile Image for Stephane Hamel.
14 reviews24 followers
March 30, 2016
This book puts into words what I've been trying to explain for years. Managers should read this book to become more data-driven; data-driven people should read it to understand the imperatives of management.
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