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Understand the essential components of any organization - goals, boundaries, and activity systems. Learn how to align these elements to achieve effectiveness and success. Explore the importance of defining goals, managing boundaries, and optimizing activity systems for organizational growth. 8
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How Organizations Work, and Why Yours Doesn’t Reed E. Nelson RENELSON@SIU.EDU REEDENELSON.COM
Three Components of Every Organization Goals: Who do we serve Boundaries: What Gets In Activity System: How Work Gets Done
Goal/Domain= Turf, Who we aim to please, or What part of the environment we want to control Domains can be broad or narrow, stable or unstable. Usually when they are broad, they are also less stable
Boundaries: What gets into and out of the organization, and on what terms Boundaries can be permeable or impermeable. Examples are: Price, Location, Breadth of Product Line, Entry and Exit Requirements, Debt, Speed of Service
Activity System Simple or Complex Flexible or Inflexible Complex= many different elements Flexible= ease of change
Effectiveness= Fit Do boundaries and activity systems fit with the organization’s domain