Designing Efficient Organizations
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This chapter sets the capstone on top of the foundations laid in Chapter 2 and the building blocks erected in Chapter 3, before breathing some life into this design with case studies of different organizations in the second part of this book. Cohesion between the different building blocks — the strategy and boundary decisions, the internal structure and governance — is necessary to keep incentives for value-creating investments and the distribution of power in balance. As a capstone in an arch supports the layout of the other bricks with its weight, only a consistent synthesis of the building blocks of organizational design with their different instruments allows the resulting organization to fulfil its function efficiently and to create the most value.
KeywordsBusiness Model Business Environment Governance Mechanism Private Equity Organizational Design
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