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Flat Organizational Structure
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Establish a divisional structure to create an adaptive organization, empower
innovators, think faster, and increase speed to market.
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VadiK |
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Inventor
Author
Founder
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Don't tell your team members how
to do things, tell them what you
are all striving for together
and let them surprise you with
their achievements.
~
Vadim
Kotelnikov |
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A
division is a
business unit having a clear
set of customers and
competitors.
A
division can be independently
planned for within the
organization and has profit and
loss responsibility.
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Two
Primary Models
of
Divisions
①
Stand-alone Division
▪ includes or has effective control over every
function required to compete;
▪ staff functions such as human resources and
finance have a dual reporting structure (reports
to both the corporation and the division);
▪ has profit and loss responsibility.
②
Task-focused Division
▪ focused on a subset of tasks (usually
development and marketing);
▪ other functions are centralized;
▪ has profit and loss responsibility.
Be
Aware of the Risks
Divisions can create internal competition that
ruins cooperation, cross-pollination of ideas,
and learning within your firm.
If
you decide to transform your organization and
create a flat structure, before you begin
implementing changes,
model the
transformation process to
reduce risks and
increase the chances of success. |
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Every layer is a bad layer. Without
all those layers, your company can become lean and agile.
Simplify, remove complexity. |
Jack Welch
GE |
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How to use this information
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