10 Principles of Organization Design
Ten guidelines for reshaping organisational structures to fit business strategy, avoiding common pitfalls of restructuring.
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Declare amnesty for the past
Don’t get caught up debating old structures. Collectively decide to move on rather than blame or justify previous designs.
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Design with "DNA."
Use the eight universal building blocks—decisions, norms, motivators, commitments, information, mind-sets, structure, networks—to create integrated designs.
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Fix the structure last, not first
Structure should be the capstone, not cornerstone. Changing org charts in isolation leads to temporary gains that quickly revert.
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Make the most of top talent
Place your best people where they can have the greatest impact on your distinctive capabilities.
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Focus on what you can control
Don’t waste energy on constraints you can’t change. Direct attention to elements within your influence.
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Promote accountability
Make it easy for people to own their work. Clear decision rights and information flow matter more than structure.
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Benchmark sparingly, if at all
Copying competitors ignores your unique capabilities. Even similar companies need different designs for different strategies.
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Let the "lines and boxes" fit your company's purpose
Structure should serve strategy. Design reporting relationships around what your organisation needs to do well.
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Accentuate the informal
Formal structures only go so far. Networks, norms, and culture often determine how work actually gets done.
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Build on your strengths
Identify what your organisation does distinctively well and design to amplify those capabilities.