Fundamentals of Level Three Leadership

98. M-Form Organization

Concept

After the pyramid structure, the next step in the evolution of the modern organization is the M-Form, which is constructed by putting several pyramid organizations side-by-side, ^^^, hence the “M” form. Of course, one need not stop at two pyramids, M, one could add as many as one can manage, ^^^^^^^. Again, the question is the span of control.⁵ Each division is a complete company. How many fully fledged pyramid organizations can a chief executive handle?

Now, if each of those companies also was a conglomerate of several pyramids, we would have a pyramid of pyramids. The “M’s” would be growing and getting bigger and bigger. In this larger view, a company becomes a conglomerate with no single focal business, rather ...