WorkMatters
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WorkMatters

Week 15, 2022—Issue #199

Organizational (Re)structuring: Complexity, Activities, and Dimensions

Photo by Peter Ivey-Hansen on Unsplash

1. Complexity

Restructuring should help the organization better manage complexity.

2. Activities

Restructuring should support the organization’s primary activities.

3. Dimensions

Restructuring involves arranging the organization across four dimensions.

  • Technology is about doing different things. Developing new software is different from maintaining old software. A technology firm might consequently choose to create separate business units for each: one that develops news software and another that maintains it.
  • Geography is about doing things in different locations. Business operations in London are different from business operations in Bangkok. A technology firm might choose to create separate business units for each: one that runs the London office and another that runs Bangkok.
  • Customers is about doing things for different needs. Customers in education might need different things compared to those in healthcare. A technology firm might consequently choose to create separate business units for each: one specializing in Edtech and another in Medtech.
  • Time is about doing things at different… well, times. Casually updating a website now and again is different from providing 24/7 support for business-critical applications. A technology company might consequently choose to create separate business units for each and… you get the idea.

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Andreas Holmer

Designer, reader, writer. Sensemaker. Management thinker. CEO at MAQE — a digital consulting firm in Bangkok, Thailand.