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Module 4: People, Teams & Culture

4.22

Org Structure Snapshot

Judge whether your structure helps or blocks the strategy, and choose between delegating, a targeted fix or a redesign.

Map the structure you have, find the pains it produces, check where decisions actually sit, and test the structure against the strategy before anyone redraws the chart.

The contingency view of structure is practice, not research, built on a long academic tradition (Mintzberg, 1979; Galbraith, 1995). Span-of-control benchmarks are a rule of thumb, and decision-rights mapping is practitioner convention. The execution findings are consulting practice from the firm's own survey (Bain & Company, 2026).

When to use it

Use it when:

Skip it when:

The idea

Organization theory has long held that there is no best structure, only structures that fit or fight the strategy, the work and the environment. That contingency view is associated with Mintzberg (1979) and was carried into design practice by Galbraith (1995). It is a frame, not a tested prescription, so treat the specifics as craft. Each structure type buys some strengths with predictable pains: functional designs tend to produce silos, matrix designs confusion about who decides. No universal span-of-control number holds up, which is why the benchmark here is a rule of thumb. Writing down decision rights is convention too, but that table is often the real finding: when most decisions sit too high, you have a delegation problem, which is cheaper to fix than a reorganization. On execution, Bain & Company (2026) reports from its own survey that leaders were far more confident than employees that a new structure would deliver. That is consulting practice, with methods unpublished. The chart changes nothing until managers change how work flows.

First step: The Structure You Have

Name the type: functional (by specialty), divisional (by product, region or customer), matrix (two reporting lines), flat (few layers, wide spans), network (project-based teams) or hybrid. Then count layers and spans.

Strong answer: "Functional: sales, warehouse, transport, customer service. Chosen when we had one customer type. Four layers from CEO to driver. Average span 9, but warehouse shift leads have 18."

Our type and why we have it:

Layers from top to frontline:

Average span, and the widest and narrowest:

Span assessment (too narrow, about right, too wide), with the reason:

Rule of thumb, not research: under about five reports often means overhead and slow decisions, over about ten often means overloaded managers. Routine, similar work with a skilled team supports wider spans; complex or new work, or people who need a lot of support, calls for narrower ones.

Example

Illustrative example: the company, roles and figures are made up.

The COO of a Danish food-service wholesaler with about 180 staff runs the snapshot after the board decides to grow sales to restaurant chains.

Section 1: functional, four layers, average span 9; warehouse shift leads have 18, judged too wide for new staff.

Section 2: efficiency green, coordination and speed red. Pains: customers falling through the cracks, slow decisions, silos.

Section 3: customer exceptions sit with the CEO, too high; process changes need the management team, too high. Hiring is at the right level.

Section 4: the restaurant priority is blocked, because nobody owns a customer across functions; the cost priority is helped. Verdict: delegate credit notes to customer service, and add one key-account team drawn from sales, warehouse and customer service. No redesign.

Section 5: six team leads redefine the key-account order flow over two half-days, with authority to change handovers. The COO checks first with the employee representatives, since tasks change. Success: one contact per chain customer, and credit notes settled the same day.

Fill it in and keep your answers

This page shows the first step. The whole template is in the MGMT AC app for iPhone, which opens soon. Your answers stay on your own device.

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