03 · Leader
Organisation Design: Six Decisions Before Drawing the Chart
Design the work, value flow, decision rights, interfaces, and capabilities first; let structure be the result, not the starting point.
The problem is rarely the boxes
Moving reporting lines can create the appearance of change without solving slow decisions or duplicated work. Begin with purpose, outcomes, value flow, and the work that must change. Use evidence such as cycle time, hand-offs, customer pain, and repeated approvals.
The six design decisions
Make the decisions in a clear sequence.
- Purpose and outcomes the design must deliver.
- Critical work and capabilities.
- Grouping logic: customer, product, geography, or expertise.
- Decision rights and accountability.
- Interfaces and integration mechanisms.
- Structure, roles, and spans of control.
Design interfaces, not only units
Most friction occurs between units. Define what passes across the boundary, who initiates, who accepts, the expected time, and how disagreements are resolved. The answer may be a decision forum, cross-functional team, or journey owner—not another management layer.
Test before announcing
Test real scenarios: an urgent customer decision, a product launch, an operational incident, and a resource conflict. If people cannot identify the decision owner or outcome owner, the design is incomplete. Plan transition, affected roles, communication, and measures from the start.
General professional guidance—check local law and approved company policy before implementation.