10 Principles of Organization Design

Ten guidelines for reshaping organisational structures to fit business strategy, avoiding common pitfalls of restructuring.

  1. 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.

  2. Design with "DNA."

    Use the eight universal building blocks—decisions, norms, motivators, commitments, information, mind-sets, structure, networks—to create integrated designs.

  3. 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.

  4. Make the most of top talent

    Place your best people where they can have the greatest impact on your distinctive capabilities.

  5. Focus on what you can control

    Don’t waste energy on constraints you can’t change. Direct attention to elements within your influence.

  6. Promote accountability

    Make it easy for people to own their work. Clear decision rights and information flow matter more than structure.

  7. Benchmark sparingly, if at all

    Copying competitors ignores your unique capabilities. Even similar companies need different designs for different strategies.

  8. 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.

  9. Accentuate the informal

    Formal structures only go so far. Networks, norms, and culture often determine how work actually gets done.

  10. Build on your strengths

    Identify what your organisation does distinctively well and design to amplify those capabilities.