8Organizing for Growth: The Separate-but-Connected Model
Deciding on the right organizational structure for a new business is a major challenge. As with all organizational decisions, it involves trade-offs. Tighter integration with the core business may enable the new venture to leverage corporate assets more easily. It can also reduce overhead, which can be a significant cost for a small entity. Finally, if a new business is integrated with the core business, it is less likely that the new business will be permitted to disrupt ongoing operations in the core.
Operating as a separate entity, on the other hand, allows the new venture to develop ways of doing things that are more appropriate to its status. It also ...
Get Lean Startup in Large Organizations now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
