Leader as Organization Designer

“Successful leaders in the future will have to become architects of enduring organizations by designing systems that create sustainable results for multiple stakeholders.” (Latham, 2012)

Like architects of buildings, organization designers (OD) must combine what we know (the science) about organizations and systems with what is possible but not yet imagined (the art) to develop solutions that address many constraints and the needs of multiple stakeholders. Two main types of organization designers exist: formal leaders and informal leaders who support them. Formal leaders include those redesigning existing organizations and entrepreneurs designing the organization for the first time. These individuals have the power and responsibility to change how the organization operates. Other ODs are informal leaders, such as internal subject matter experts (SMEs) and external consultants who support formal leaders. 

Both formal and informal leader ODs must be able to lead across functional boundaries to be successful. Organization designers exist at all levels of the organization, and their efforts range from processes to systems to the overall structure and business model. To achieve sustainable excellence, leaders must become architects of their organizations and [re]imagine and [re]invent them to create value for multiple stakeholders. As Gary Hamel noted in his book The Future of Management, “What is lacking is not insightful analysis, but truly bold and imaginative alternatives to the management status quo—and an army of innovators who have the stamina to reinvent management from the ground up” (p. 40). 

The Mind of the Organization Designer

The mind of the OD is multidimensional and draws on perspectives from multiple disciplines. The OD integrates practical, creative, and human dimensions to develop holistic designs that create value for multiple stakeholders. The OD is practical and incorporates engineering and business mindsets. At the same time, the OD uses research to inform the technical design of systems to produce the intended value. 

Systems must also make financial sense. In other words, they must deliver more value in output than the input. The OD also incorporates human dimensions of both individuals and groups. As a psychologist, the OD incorporates insights from psychology into system design. The OD is also part anthropologist, integrating how individuals work together and develop cultural norms. 

Finally, the complete OA is a creative designer who incorporates art and design possibilities into developing new and imaginative designs. This multidisciplinary perspective informs the two essential OD competencies: leadership and design. Regardless of position or title, organization architects (leaders, entrepreneurs, and those who help them) must master two skills: leading transformation and organization design.

Leadership

The journey to sustainable excellence is challenging and uncertain. Most change efforts fail to achieve their objectives mainly because leaders fail to set an example and see it through personally. The first step is for leaders to start with themselves. As Gandhi proposed, you must become the change you want to see in the organization. Only then will you be credible. 

Setting the example requires you to understand and apply the five key components of the leading transformation framework: forces and facilitators of change, leadership system, leadership style, culture, and the individual leader. The Leadership Framework presented here is based on the experiences of CEOs who led successful organization transformations that created sustainable value for multiple stakeholders (Latham, 2013a, 2013b). The flexible framework includes a design framework to help ODs [re]design the organization one design project at a time.

Design

Leaders today face many challenges that require designing or redesigning organizational structures, systems, and processes to achieve and sustain high performance. Reaching your organization’s full potential demands organizational and managerial systems tailored to your unique situation. Best practices from other companies, consultants, and business books often work, yet they seldom achieve the high levels of performance possible with a “bespoke” (custom) solution. 

The Design Framework guides you through the five phases of discovery, design, develop, deploy, and iterate (D4 + I) using a flexible approach for designing or redesigning any organizational system, process, or practice (Latham, 2012). Although the framework components are presented in sequence, the framework is often used iteratively, with a give-and-take among the components. The first eight discovery components provide a springboard to the creative design process. 

Organization system redesign is a common strategy deployment activity. Unfortunately, many organizations are much better at strategy development than they are at strategy deployment. The Design Framework increases the odds of successful and sustainable strategy deployment. The remainder of the book is organized around these two frameworks.

References

Hamel, G. (2007). The Future of Management. Boston: Harvard Business School Press.

Latham, J. R. (2012). Management system design for sustainable excellence: Framework, practices and considerations. In Quality Management Journal (Vol. 19, Issue 2, p. 15). https://doi.org/10.1080/10686967.2012.11918342 

Latham, J. R. (2013a). A framework for leading the transformation to performance excellence part I: CEO perspectives on forces, facilitators, and strategic leadership systems. In Quality Management Journal (Vol. 20, Issue 2, p. 22). https://doi.org/10.1080/10686967.2013.11918095 

Latham, J. R. (2013b). A framework for leading the transformation to performance excellence part II: CEO perspectives on leadership behaviors, individual leader characteristics, and organizational culture. In Quality Management Journal (Vol. 20, Issue 3, p. 22). https://doi.org/10.1080/10686967.2013.11918354