Wisdom: Shape and span of control does not make organization design

The following is an excerpt from our monthly Org Design Digest e-mail. If you would like to receive our update in your inbox each month, let us know.

There is a strong trend among some CEOs to focus on shape and spans of control as a measure of performance – or more accurately, a measure of costs.  Unfortunately and most predictably, those responsible in the business for operationalizing, monitoring and implementing this CEO mandate interpret this as “structure” and more disconcerting, organization design.  Recently, we have been invited into numerous companies where they have asked for organization design support – yet once we get down to what the real need is, the focus is solely on shape and spans because “it’s important to the CEO.”  What’s the problem with this?  Simple.  Shape and spans of control are only one element of concept structure reflecting a narrow versus flat structure choice.  This key structure decision – should the structure be narrow versus flat, must be made in concert with a cluster of related structure decisions.  For example, flatter structures require greater localized decision making and a shift in the role of management.  This myopic focus on shape and spans is exactly how businesses get fragmented and lose the plot entirely.

Please join us on our next webcast in July where we will address concept structure including shape and spans of control as part of the organization design process ensuring organization alignment – a business fit for purpose.  You don’t want to miss this...details are coming soon.