Organizational Architecture

Organizational Architecture is "a theory of the firm, or multiple firms, which integrates the human activities and capital resource utilization within a structure of task allocation and coordination to achieve desired outcomes and performance for both the short run and the strategic long run" (Burton and Obel, 2011a, 2011b).

Elements and Misalignments of Organizational Architecture

The 5 Elements of Organizational Architecture
Watkins identifies the five elements of organizational architecture:

• Strategy: the core approach the organization will use to accomplish its goals.
• Structure: How people are situated in units and how their work is coordinated.
• Systems: The process used to add value.
• Skills: The capabilities of the various groups of people in the organization.
• Culture: The values, norms and assumptions that shape behavior.

Identifying Misalignments of Organizational Architecture
Watkins identifies three common misalignments:

• Skills and strategy misalignments.
• Systems and strategy misalignments.
• Structure and systems misalignments.