How to Implement the Star Model to Your Business (With Tips)

Updated July 9, 2022

Proper implementation of the star model enhances efficiency and productivity of an organization. The star model comprises five areas that work together to shape choices and behaviors of a company. Learning more about the star model can help you understand the steps to take to increase efficiency and productivity in your role and organization. In this article, we explain what the star model is and provide you with five steps on how to implement the star model for your business.

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How to implement star model to your business

Here are the steps that you can follow to implement the star model for your business:

1. Create a strategy

Successful implementation of the star model begins with creating a proper strategy. Strategy defines the plans a company has to achieve a goal, along with its values and mission. It specifies the products and services a company can offer and how it intends to use its resources, including material assets, knowledge, and expertise of its employees. There are many aspects to consider when implementing a strategy, including:

  • Establish a vision for the company. A company's vision describes its future ambition.

  • Identify competitive advantage. A business needs to establish how it can offer unique value to its customers through service delivery and reasonable prices.

  • Define the target market. This helps to make the marketing process efficient by developing a unique marketing model, helping to increase sales volume.

  • Strategize on systematic growth. The strategy identifies which sectors of the company can grow and by what percentage. This enables the company to know how much to invest in capital and overhead expenses.

  • Consider long-term aspirations. Thinking about the futures helps to analyze possible future obstacles and how to overcome them to achieve long-term goals.

  • Be inclusive. Including different types of people in the company's strategy increases transparency and innovation.

  • Conduct proper research. Ensure managers involved in drafting the company's strategy conduct proper research and review relevant information before the strategy meeting.

  • Ensure the strategies are achievable and measurable. Encourage ownership of the plan across the company and ensure implementation of the strategies.

  • Ensure key performance indicators reflect the company's strategy. Implementing the company's strategy requires discipline, and it is the duty of its senior managers to ensure the team focuses on achieving the set targets.

Related: How To Become a Business Analyst in 3 Easy Steps

2. Have a structure in place

Organizational structure dictates the kind and number of job specialization required in the company. It determines the number of departments and employees necessary for each department. The organizational structure also regulates the flow of authority within the organization and placement of power. Some steps you might consider when implementing the organizational structure include:

Establish job descriptions

Job descriptions list all the positions in the company, their roles and responsibilities, and the skills required for each role. It also outlines the reporting structure of the organization. Job descriptions enable business owners to account for all the functions required to operate the business. It also ensures that each employee has a reasonable workload and managers have a realistic number of employees to supervise.

Evaluate your staff

Assess the qualifications and skills of each employee and ensure they work in a role which suits their skills. Consider the future growth of the company and review whether the current staff have the ability to grow into future managerial positions. Establish a career plan for each employee and determine which skills and qualification they require through training in order to advance within the company.

Define positions you need to replace

Determine the gap between the skill set the organization requires and the abilities of the current employees. Identify roles that current employees may be unable to handle due to misalignment of these skills. You can fill these roles with the ideal candidate who meets the qualifications.

Create the organization chart

Create a chart showing how the organization will appear for the period of the business strategy. Start this chart with the topmost executive. If you create and use this chart properly, you can enable an effective flow of information and experience responsiveness across teams.

Avail the new structure

After representing the organizational structure in a chart, present it to employees. Assure them the new structure will improve the efficiency of the company. When implementing the structure, ensure optimal use of employees' skills to enhance both their career growth and that of the company.

Read more: What Is Strategic Management and Why is it Important?

3. Implement new processes

A process is the movement of information or decisions across all levels of the organization. You can follow these guidelines to help ensure implementation of the new processes:

  • Set a clear objective. The objective shows the business process you want to revise, the reason you are revising it, the actions you plan to take, and what to expect as a result.

  • Get input from across the organization. When you involve all members in decisions, they feel they are part of the change and are more likely to adopt the new process.

  • Communicate the implementation process. Once the new business process is in place, communicate the changes across the organization. Show how the new process will add value to the company and explain the steps to take in the implementation process to make the team accountable.

  • Encourage adoption. A successful implementation requires one person to take ownership of implementing the new process.

  • Be open to making adjustments to the proce**ss:** A new process is likely to succeed if it provides value to the workplace and employees. If it does not, then make adjustments accordingly.

Related: How To Improve Your Management Skills

4. Reward performance

Reward systems refer to structures created by organizations to reward outstanding performance and motivate employees. The rewards might include compensation, recognition, benefits, and appreciation. Here are some tips you might consider when establishing and implementing your reward system:

  • Involve the employees. When you involve your employees, they better understand what you require of them. You can also find out the type of rewards the employees prefer.

  • Reflect company goals. Give rewards for performances which directly affect the company's profitability. For example, if your organization is a service industry, you can base your reward system on customer satisfaction.

  • Be precise and consistent. Ensure the reward scale is the same across the organization. While you reward top performers, you might also consider rewarding other staff who have shown significant improvements.

  • Reward behaviours. As much as we reward tangible results like sales volume, rewarding behaviours such as punctuality and teamwork can inspire employees to improve.

  • Reward teams. Rewarding teams who perform well can increase the togetherness of the teams, irrespective of individual contributions.

Read more: How To Define and Measure a Key Performance Indicator

5. Develop your human resources department

The human resources department recruits, trains, deploys, and promotes employees. It's important for human resources policies to reflect the organization's objectives so you can ensure you have the right personnel. Consider these guidelines when developing your human resources department:

  • Consider the long-term goals of the organization. Establish what the company plans to achieve in the long term and the human resources you need to achieve those goals.

  • Evaluate your current employees. Assess the quality of your employees in terms of performance, education level, experience, and skills. Also, assess staff turnovers, new recruits, and promotions.

  • Identify the skill gaps. After analyzing the future needs of the company and the current workforce, identify which areas the company needs new employees in to fill the missing skills. The organization may train the existing employees on the additional needs.

  • Prepare for future uncertainties. With advancing technology, it's important for the company to prepare in advance on how to train employees.

  • Seek external advice. If necessary, hire a consultant in strategic workforce management to advise you on workforce implementation.

  • Remember the organization's culture. With changes in skills and technology, there might be changes in the organization's culture as well. Find the core values to keep and ones to amend to conform to the changes taking place.

  • Monitor and put it to work. Once the strategic workforce is in place, start implementing it.

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What is Galbraith's star model?

Galbraith's star model is an outline developed by Jay Galbraith, and is used to help promote growth in an organization by providing a foundation on which to base decisions. The model sustains a company's business plan over time and allows the company to adapt to changes in the business environment. By following these five categories, you can positively influence your organization's productivity, among other benefits.

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