Rewired, 2nd Edition

CHAPTER 13The revolutionary idea: Embedding engineering talent in the business

A newly appointed CEO of a large global company found herself searching. While she and her top team were aligned that their current operating model had to change, it was far less clear what it should become. There was no obvious blueprint to follow, and no single answer that felt right for the company’s context and ambition.

Rather than rushing to a solution, she deliberately took time to explore how other organizations facing similar challenges had tackled the problem. Over several months, the leadership team examined different operating models, debated trade-offs, and reflected on what had—and had not—worked elsewhere.

That pace was intentional. The CEO knew that adopting a fundamentally new way of operating would require more than executive mandate. It would demand a shared understanding, conviction, and commitment from the entire top team if the organization was to make the shift successfully.

In this chapter, we take you on this exploration journey.

Traditional vs. distributed operating models

Recent research tested a set of common operating model options to understand what makes them successful.¹ Executives were asked to identify which structure out of six typical configurations most closely represents their current design. The findings show that 89% of organizations still primarily use a traditional hierarchical structure—that is, a business unit/holding company approach, matrixed management, ...