The operating model is the strategy
Why organizational structure, decision rights and cross-functional coordination increasingly determine whether strategic priorities translate into performance.
Read articleOrganizational complexity becomes costly when coordination starts to dominate execution
Complexity is not the number of boxes on a chart; it is the effort required to produce an outcome. Diverse products, markets and regulation may justify a complex organization. The cost becomes destructive when approvals, interfaces and competing priorities consume more capacity than the work itself, while no one owns the end-to-end result.
Measure coordination load directly. Trace a representative decision or customer request and count hand-offs, waiting days, approvers, duplicate data entry and meetings. Analyze recurring escalations, rework and exceptions. Compare managerial time spent integrating work with time spent improving it. These measures expose complexity hidden by headcount and functional productivity.
Identify its source before simplifying. Some complexity reflects genuine customer variety or risk; some comes from legacy products, overlapping governance, bespoke systems or unclear decision rights. Removing a layer will not help if the same unresolved dependencies remain. Preserve valuable variety while eliminating organizational responses that no longer earn their cost.
Simplify through rules and boundaries. Give value streams accountable owners, standardize common data and services, reduce approval levels and define tolerances for local decisions. Remove reports and forums that do not change a decision. The UK Government Efficiency Framework similarly connects benefits, governance and portfolio oversight so that efficiency is evidenced rather than asserted.
Track whether execution capacity returns: faster decisions, fewer exceptions, lower rework, better service and more management time on improvement. Watch for risk displaced downstream or workload concentrated in pivotal roles. The aim is not a minimal organization, but one whose coordination effort is proportionate to the value and uncertainty it must manage.
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Why organizational structure, decision rights and cross-functional coordination increasingly determine whether strategic priorities translate into performance.
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Read articleFocus
Adoption depends on how interests, incentives and operating realities are reconciled across affected groups.
A functioning system links strategic priorities with measurable outcomes, management routines and clear ownership.
Strategic challenges
The challenge is setting boundaries that preserve coherence without suppressing legitimate market differences.
The core challenge is resolving competing priorities before they harden into resistance, delay or passive compliance.
POV
When routine choices reach the top, the problem is usually architecture below the executive team, not leadership.
Strategy falters when governance, capabilities, processes and accountabilities remain tied to the old model.
Strategic impact
Evidence across performance, work and behavior separates systemic issues from local symptoms and isolated complaints.
Explicit interfaces and shared priorities reduce handoff failures, duplication and unresolved trade-offs.
What we observe
Communication can create visibility while leaving unresolved concerns, incentives and ownership beneath the surface.
Changing reporting lines first can preserve broken processes, ambiguous interfaces and outdated decision mechanisms.