Organization Structuring: Balancing Synergy and Focus: An Approach to Leveraging Talent Across an Organization

It may seem surprising, but a company with a wealth of talent can still fail, while one with more modest skills can thrive. How is that possible? The secret lies in how talent is deployed in alignment with the company's goals. This challenge becomes even more pronounced when a company operates across diverse industries, each requiring a specialized skill set—or at least a very different focus.

The key to success in such a scenario is a dual approach: optimizing talent deployment on the one hand and fostering a collaborative environment on the other. The goal is to create synergy without diluting focus.

As companies expand and diversify, certain principles must guide the process for it to work. One of the most significant risks is when talent becomes siloed within individual subsidiaries, leading to inefficiency and missed opportunities. Ultimately, the actual value of talent is realized when it's shared and leveraged strategically across the organization.

A Reflection on My Own Experience

A lesson from 2016 still resonates today when a massive, multi-profile company brimming with talent faced fragmentation that cost millions. At the time, I didn’t fully grasp how critical it was to handle organizational transitions carefully—until the numbers started speaking for themselves. When we decided to separate our subsidiaries, each with its structure, we quickly realized that the focus we hoped for could have been achieved in many ways other than by creating additional structures, duplicating roles, and tripling costs.

Initially, there was excitement about building individual structures tailored to each entity. I led one of five sectors and, within it, a conglomerate of 8 brands representing different entities across the MENA region. However, as the initial excitement faded and the P&L figures started to speak louder—with reduced NOPs and shrinking bottom lines—the call for a management retreat grew stronger. That retreat was a turning point. Leaders who had once championed the idea of distinct, independent structures found themselves eating their words, acknowledging the need for synergy.

Cost became the real pain point, and soon, terms like “synergizing teams,” “double-hatting roles,” and “stretching scopes” started to emerge. The inevitable result was putting people on redundancy lists, further demoralizing teams.

Did you see it? Although the decision to branch out initially seemed glamorous, the retreat cost was far more expensive than anticipated.

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The Management Retreat

Although the lessons from 2016 eventually worked in my favor in 2018, when I was promoted to lead two sectors—one of which included a larger conglomerate of entities—I faced one of the toughest challenges of my career. Leading hundreds of people through the aftermath of a management retreat was one of the most difficult times I’ve experienced. The optimism of restructuring quickly turned to the harsh reality of layoffs and morale issues as the team struggled with the fallout from the retreat's decisions. The emotional toll of guiding so many through uncertainty and change tested my leadership in ways I hadn't anticipated.

Despite the challenges, the retreat ultimately proved to be the best decision. Numbers improved, talent was stretched, expertise was leveraged across the organization, and—most importantly—focus wasn’t lost. But how did we manage to maintain focus? This is where the delicate balance between synergy and focus comes into play.

Achieving this balance isn’t easy, but it’s possible with the proper techniques and strategic recommendations at the corporate level. By creating a structure allowing collaboration across teams and transparent, aligned goals, we ensured that each entity's focus remained intact, even while sharing resources and expertise. Effective leadership, a strong communication framework, and a carefully designed talent strategy played key roles in harmonizing these elements.

At the corporate level, it’s crucial to set clear boundaries and priorities while fostering a culture of collaboration—this enables teams to synergize without losing sight of their core objectives.

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A Hybrid Model: A Delicate Balance of Synergy and Focus

The best structure for leveraging talent across a family of companies is a hybrid model that combines centralized leadership with decentralized execution. This approach allows for shared expertise while maintaining the autonomy of individual companies. Components of a hybrid model could include the following:

Centralized Talent Pool for Key Functions

Establishing a centralized talent pool for functions that can be universally applied across all companies within the organization—such as Finance and Accounting, Human Resources, Marketing and Branding, and Technology and Innovation—ensures consistency, efficiency, and cost-effectiveness. This centralized team, acting as a “shared services” hub, can standardize financial management, talent acquisition, marketing strategies, and IT infrastructure across subsidiaries. By pooling resources and expertise in these areas, the organization reduces redundancy, enhances collaboration, and ensures alignment with the parent company’s overarching goals, all while driving innovation and maximizing economies of scale.

Also, Centers of Excellence (CoEs) should be created to provide specialized expertise in key areas. Acting as advisory hubs, CoEs guide best practices and offer tailored support to companies. For example, a CoE for digital transformation can help modernize processes, while a CoE for customer experience can develop strategies for various industries. Each CoE should be flexible in addressing specific challenges while maintaining consistent excellence.

?Strategic Oversight with Clear Focus

Strategic Oversight with a Clear Focus ensures that while talent is shared across the organization, each company retains strong leadership focused on its unique objectives. Accountability and clear direction are maintained by appointing CEOs who report to a central board to lead each company. These leaders are empowered to tailor strategies to their specific markets or industry needs while leveraging shared resources and expertise from the broader organization. This approach strikes a balance between autonomy and collaboration, allowing each company to stay focused and agile while benefiting from the collective strength of the entire group.

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When Benefits Outweigh the Challenges

Talent Rotation Programs build versatile leaders to make the hybrid structure effective, while Technology as a Unifier ensures seamless collaboration across companies. Clear boundaries and strong leadership are needed to mitigate conflicts like role overlap and resistance to change.

?While the Hybrid model is adequate for cost-saving, talent leverage, and maintaining control, board members must be crucial in resolving potential conflicts between the strategic focus teams, the shared services hub (SSH), and the Centers of Excellence (CoEs).

One key challenge is the potential conflict of prioritization, as each CEO may have priorities that might differ from those of the SSH and CoE. Clear service level agreements (SLAs) and well-defined roles and responsibilities are critical to better collaboration between these entities. A strong governance structure is needed to reprioritize assignments in alignment with the company’s mission and vision.

Another challenge is the risk of talent burnout within the SSH and CoE, as team members may need to work on managing their workload. To mitigate this, workloads must be fairly distributed, and clear productivity guidelines should be established to prevent unnecessary strain, particularly in the absence of rational leadership. This will help ensure that talent is managed sustainably and effectively.

Adopting and adapting this approach is no small feat—it requires careful planning, preparation, and informed decision-making that considers cultural challenges and the existing talent pool available for deployment.

For more insights on implementation steps, follow!

Mourad Melika, Ph.D.

Driving Growth Through Learning, Innovation, and Excellence

[email protected]

Disclaimer: The insights provided represent the author's personal views and are intended for informational purposes only. These insights should not be construed as legal or professional advice. I would encourage you to consult with your attorneys or relevant specialists before taking action based on the shared content.