CEOs face increasing dynamics of their environment and the complexity of larger organizations. To cope with this, CEOs must organize for delegated decision making.
Balancing conflicting goals. When organizing leadership, CEOs need to balance efficiency, the need of scale, and effectiveness, the ability to cater to local needs. At the same time, a new structure needs to be simple, provide employees with as much delegated responsibility as possible. and enable fast implementation. Reconsiling these conflicting goals requires experience and expertise that is expensive to own.
Key structuring questions for CEOs. When thinking about a new organization, CEO must consider various questions:
- Organization: What is the dominant structure principle?
- Leadership: How is decision making delegated?
- Support: What is the ideal support structure?
- CEO Office: How do we lead the organization?
- Systems: What processes and systems support delegation?
- Capabilities: What capabilities are needed for good decisions?
Organization design for higher agility and speed follows the leadership structure.
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