Organizational charts hold a strange allure for executives. Restructuring – moving boxes around the
chart – feels like an easy win, a solution readily available in countless management textbooks. But this
obsession with structure can be a dangerous trap.
Why leaders fall prey to the “restructuring reflex”
● Illusion of Control: Restructuring offers a tangible sense of control. By rearranging the
organizational chart, leaders feel like they’re actively fixing problems.
● Textbook Solutions: Management books offer neat organizational structures, each with its
advantages and disadvantages. Leaders mistakenly believe these models translate directly to real-
world complexities.
The Pitfalls of a One-Size-Fits-All Approach
The truth is, structures are just tools, and the “perfect” structure depends on several factors:
● Lifecycle Stage: A startup thrives with a flexible structure built around talented individuals. But that
same structure would stifle a mature organization.
● Strategy: An R&D department centralized at headquarters might benefit established business units,
but it would cripple a nascent one needing rapid market adaptation.
Structure Should Serve Strategy, Not the Other Way Around
The real challenge lies in aligning structure with purpose and strategy. Here’s the key takeaway:
● Structure as Enabler: Structure should empower the organization to achieve its strategic goals. It
should reflect the flow of authority, responsibility, and rewards.
● Alignment is Key: Structure, strategy, and purpose must be synchronized. They should reinforce
each other, not create roadblocks.
Think Twice Before Tinkering
Just like fixing a car doesn’t always require a redesign, organizational changes should be strategic, not
impulsive.
● Focus on Strategy: Let strategy guide structural changes, not the other way around.
● Less is More: Don’t fall into the trap of over-engineering the structure. Sometimes, small
adjustments can yield big results.
Things to Remember
Effective leadership isn’t about blind restructuring. It’s about understanding the interplay between
purpose, strategy, and structure to create an organization that functions seamlessly as a whole.
