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Leading Organization Design: How to Make Organization Design Decisions to Drive the Results You Want by Amy Kates, Gregory Kesler

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Chapter 8. Design for Operating Governance

INTEGRATION AND COLLABORATION ARE EXPENSIVE in terms of management time and attention. Time spent negotiating with colleagues is time away from customers and employees. Forcing integration where it does not add value slows the company down and wastes resources. Management teams that have a clear picture of how the various units should interrelate—the operating model for the company—make decisions and move faster than those that do not. The operating model determines where and how closely organizational units need to be linked together. Just like capabilities, the operating model informs every step in the design process, as shown in Figure 8.1, but especially the Integration phase.

Operating Models

In holding ...

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