For most companies, organization design is neither a science nor an art; itβs an oxymoron. Organizational structures rarely result from systematic, methodical planning. Rather, they evolve over time, in fits and starts, shaped more by politics than by policies. The haphazard nature of the resulting structures is a source of constant frustration to senior executives. Strategic initiatives stall or go astray because responsibilities are fragmented or unclear. Turf wars torpedo collaboration and knowledge sharing. Promising opportunities die for lack of managerial attention. Overly complex structures, such as matrix organizations, collapse because of lack of clarity about responsibilities.
Most executives can sense when their organizations are not working well, but few know how to correct the situation. A comprehensive redesign is just too intimidating. For one thing, itβs immensely complicated, involving an endless stream of trade-offs and variables. For another, itβs divisive, frequently disintegrating into personality conflicts and power plays. So when organization design problems arise, managers often focus on the most glaring flaws and, in the process, make the overall structure even more unwieldy and even less strategic. π€·