As in every creative work you have to understand what building blocks to be used in order to create the end result, and it is the same when you design your business. In order to design effective internal structures in any company, the 7 building blocks outlined in this post will be a strong tool-kit. These building blocks has been developed and refined over the years in hands-on work. They are based on people needs, practical experience, team work, modern management literature and requirements from ISO management system standards.

7 building blocks

Purpose, Organization structure, Process and directive, Governance
These are the building blocks that relates to the set-up of an organization and when these are available, employees are ready to act. People need to understand the purpose of the organization and how roles and responsibilities are aligned. Management should have given directives on how to act in different situations and the value creation processes has to be available.

Plan and Report These are the building blocks that identifies future wanted situations, time framed objectives, as well as what to do at different times. To enable management control reporting procedures are set up. With these two building blocks in place employees can act and activities controlled.

Deliverable Deliverables describes the tangible output from the organization. With an understanding of these and how customer values those, employees can understand if performance is satisfactorily, if plans and reporting are sufficient and if the organization set-up fit customer needs. The specific design of the 7 building blocks does of course vary between companies. If you operate on different markets, if you have different types of products, if you have different types of assets in your position, etc. the design of the building blocks will of course look differently. Or should I say, have to look differently. Unfortunately organizations often tends to copy others or re-use historical ways of working rather than to develop a design of the management system that enables unique advantages.

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