Organizations Are Designed in the Wrong Order

Organizations are almost always designed in the wrong order. I argue this because, in our working lives, we constantly run into a fascinating paradox called organizational silos. Deep down, they are just a figment of human imagination, yet in everyday execution, they are often harder than diamonds.

So why does this happen? Because we fall into the “structure first” trap.

It is human to want quick clarity on who reports to whom. But when the organizational chart is locked in first, we draw boundaries between people before we have even defined how they should collaborate.

This cements the dynamic: Us vs. Them. Sales vs. Production. IT vs. Business.

(In the attached video, I share a story of a successful transformation where we reversed this marching order, and the kinds of counterarguments we faced.)

To prevent silos from hardening into diamonds, the design order needs to be flipped on its head:

1. Operating model first: How is value created? How should the work flow?
2. Then roles: What skills and responsibilities are needed for the operating model to run?
3. Only finally, structure: What kind of organization best supports this operating model?

If you start with boxes, you get boxes. If you start with an operating model, you get results.

Aspenly · Thinking