The Four Structure Types

In a previous post (https://www.dhirubhai.net/feed/update/urn:li:activity:7239708049643298816?updateEntityUrn=urn%3Ali%3Afs_updateV2%3A%28urn%3Ali%3Aactivity%3A7239708049643298816%2CFEED_DETAIL%2CEMPTY%2CDEFAULT%2Cfalse%29&lipi=urn%3Ali%3Apage%3Ad_flagship3_profile_view_base%3BiskykXd7Tpind4z8lYq7dw%3D%3D) I made the point that Operating Model design is different to Organisation (Structure) Design – although structure is a key part of both design projects.? As part of my structure design process with companies, I take them through a one-hour education session on the different types of structures, a key part of which is the four basic structure types (see attached image). I am often surprised at how many executives have never been exposed to this key piece of information - so here it is.

A few other design points that might be helpful:

·?????? 95% of structures are functional (they suit small businesses)

·?????? Most larger companies have a mix of structures (called a “hybrid structure”)

·?????? Matrix structures (dual accountability) are key to coordinating effort across multiple groups

·?????? The choice of which structure to go with should be based on the organisation’s strategy and long-term goals.

If you do engage consultants to help design the organisation structure, they should at a minimum be explaining their proposed structure using these terms, and, showing clear links between their choices and your organisational strategy and long-term goals.