The Pivot Points of Org Design

The cynical leader says, “If there is doubt, if there is uncertainty, or when I need a distraction – reorganize!” 

There are many reasonable ways to design an organization’s reporting structure and operating model.  All organizations must adapt to changing environments and objectives. 

The key parallel questions:

                What problem are we trying to solve?

                What problems do we prefer to have?

A foundational question (the answer is rarely obvious): What business are we in?

I observe these common pivot points where designs flex over time:

  • Centralized Decisions and Skills vs. De-centralized Decisions and Skills
  • Global vs. Regional vs. Local standards and processes
  • Rely on the unique strength mix of an individual in a role vs. a Structured Team or Program

(Can you think of others?)

I call these pivot points because we tend to swing the pendulum from one side to the other.  Each point along the spectrum has its problems, therefore there will always be someone who recommends a reorganization or redesign in order to solve a present problem.