Proper organizational structure is one of the most critical enablers to any successful strategy implementation – but it is only one part. Clarity in decisions rights – who gets to decide what – and the governance processesthat support those decision rights – are fundamental to nimble executive management and allowing the organization structure and strategy implementation to work as designed. Often, it is more important than organization structure itself. We see a bias to believe that altering the structure alone will have a profound impact on performance, efficiency, culture and competence. To create true agility, companies must look beyond just structure. We find the best organizations are those that focus less on the boxes and the lines. What many organizations hope to accomplish by changing the organization structure is in fact better achieved by leaving the core foundation of structure intact and placing more organization emphasis toward two items: decisions rights and governance. This paper explores both topics further.
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