how to implement the star model into your business goals

Editors’ note: If you want to learn more about Organizational Design (OD), click here to view Flevy’s Organizational Design (OD) Frameworks selection. This is a curated selection of best practice frameworks based on the academic research, thought leadership, and recognized subject matter experts from top consulting firms. You can stay ahead of the curve by learning and using these ideas. Full details here.

You can implement the Star Model into your business using the following steps:
  1. Create a Star Model graph. …
  2. Start with strategy. …
  3. Move on to the structure. …
  4. Write down the company processes. …
  5. Write down the company rewards. …
  6. Consider how people relate to the company. …
  7. Share this information with all employees.

Star Model in Organization Design Overview

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how to implement the star model into your business goals

how to implement the star model into your business goals

What is Jay Galbraith’s Star Model?

Jay Galbraith’s Star Model is a framework developed by Jay Galbraith that is used in the development of organisations as a basis for design choices.

The five categories in this model that make up an organization’s design are strategy, structure, processes, rewards, and selection & development. To establish a strong foundation and organizational structure, these areas should be linked together and clearly defined.

Management increases the likelihood of good performance later on by using the Galbraith Star Model to work effectively during this stage of an organization’s development, as well as the likelihood of a favorable corporate culture.

The organization serves as a center of gravity holding all five areas together in the middle of the five stars, or five categories. These five design elements are under management’s control and may affect how employees behave.

The design policy can therefore be viewed as a tool that management will need to master in order to effectively mold the organization. The Business Model Canvas is yet another powerful tool for reshaping organizations.

A well-known and frequently used design framework for organizations is the Jay Galbraith’s Star Model. The model was created with this objective in mind and released in the 1960s.

Understanding the Galbraith Star Model™

The organization’s design framework for successful strategy execution is called the Galbraith Star ModelTM. It consists of 5 major components.

  • Strategy. This component is the company’s formula for winning. It is the goals and objectives to be achieved, as well as values and missions to be pursued. It defines the basic direction of the company. Strategy Development is essentially important in specifying sources of Competitive Advantage.
  • Structure. The second component, the Structure, determines the location of the decision-making power. It is the placement of power and authority in the organization.
  • Processes. Information and decision processes is a component that cuts across the organization’s structure. It is a means of responding to information technologies. Management processes can either be vertical or lateral. Either way, these are designed around a workflow from new product development to the fulfillment of a customer order. If the structure is the anatomy of the organization, processes are its physiology or functioning.
  • Rewards. The fourth component provides motivation and incentive for the completion of the strategic direction of the organization. Rewards are recognition that influence the motivation of people to perform and address organizational goals. It becomes effective only when they form a consistent package in combination with other design choices.
  • People. People is the fifth component that focuses on influencing and defining an individual’s mindset and skills. It looks into the human resource policies of recruiting, selection, training, and development of people needed by the organization to achieve its strategic direction. HR policies work best when these are consistent with the other connecting design areas.
  • The five components are essentially important. Each component has its underlying purpose and impact. For the organization to have an impact, the components must be coordinated with one another in an effective way. Additionally, organizations must be fully aware of the effects of implementing the Star ModelTM framework in this rapidly evolving business environment. The Star Model may have implications, such as the way the lines that make up the star shape are intertwined.

    Understanding the Galbraith star model

    An organization can base its design decisions on the Galbraith star model.

    The model directs design decisions and policies that management can control to affect employee behavior in order to achieve this.

    The model can also be used by management to pinpoint and then resolve any issues with the organization’s structure.

    The five interconnected categories that make up Galbraith’s model are diagrammatically arranged to resemble a star.

    The organization itself acts as a center of gravity in the center of the star, holding the five elements together.

    Each of these components will be thoroughly explained in the section after this one.

    FAQ

    How do you use a star model?

    The Star Model consists of five areas: Strategy, Structure, Processes, Rewards, and People. These areas should be linked and aligned to successfully influence the choices and actions of your organization. As a “center of gravity” holding the five areas together, the business model is positioned in the center of the star.

    Where are star models used?

    Dr. The Star Model is a framework that Jay Galbraith created in the 1960s. This model offers the framework on which businesses can base their design decisions. This framework consists of a number of design policies that the management of a company can use to regulate and affect employee behavior.

    What is HR Star model?

    Figure 4 suggests that the policies that leaders can influence and that can have an impact on employee behavior are part of the Star ModelTM. It demonstrates that managers can affect behavior only by acting through the design policies that have an impact on performance and culture.

    What are the design strategies that Galbraith describes?

    The five categories in this model that make up an organization’s design are strategy, structure, processes, rewards, and selection & development. To establish a strong foundation and organizational structure, these areas should be linked together and clearly defined.

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