Analyzing Organizational Capability

The STAR Model

Strategy
• Business Direction/Value Drivers
• External Marketplace Realities
• Face Validity - Fits Real Need

Mgmt. Systems & Processes

Metrics & Rewards • Horizontal/Core
• Accountability Measures • Information Systems
• Alignment • Cost Accumulation
• Results/Behaviors Reinforced • Decision-Making
• HR Practices

People Capability
• Key Leaders Structure
• Clear Accountability
• Skills Mix
• Lateral Integration
• Right Fit vs. Core Competencies
• Focus
• Learning/Development
• Efficiency

Learn about what’s working or not working

 The STAR Model

The STAR Model is a systems approach to analyzing and managing organization change supporting
business direction. Completing this analysis referencing the business STRAP & AOP will allow you to
challenge your organization assumptions. The following is provided as a brief overview of the model. To
gain a greater knowledge of the process, please refer to Strategy Implementation by J.R. Galbraith, Robert
K. Kazanjian.

• Strategy How will your business change over the next three years? What kind of business strategy
will you need to successfully compete?

• Structure How will you need to arrange resources, tasks, and accountabilities to achieve greater
performance (e.g., reduced layers, increased spans of control)? What will your organization structure
be like in one year? In three years?

• Systems/Processes What management or business processes should be established or improved to

successfully plan and implement the work and measure results? What will be the impact of the changes
on your human resources? How effectively are Six Sigma Plus processes/tools being used?

• Metrics & Rewards How do your key measures (e.g., productivity, customer satisfaction, etc.) align
with your business strategies and objectives? What barriers exist to your reward strategy? Are
accountabilities and goals measurable? Do you have mechanisms in place to reward and reinforce
desired results and behaviors?

• People Capability How effectively are you acquiring, managing, developing and rewarding your
human resources? What human resource systems need to be put in place or modified to meet your
future people requirements? What needs to be practiced more effectively to increase responsiveness
to change, diversity, learning and employee satisfaction?