“Moving from a Functional to a Business Unit Structure has worked out really well for us. It forced me to elevate the caliber of leaders in my ELT. And that has allowed me to focus on our most strategic and impactful issues.” This was the feedback from the CEO of a publicly listed 6,000-employee business services firm. Two years after the redesign, their topline growth is running at 18% (versus 14% previously) and their stock is up 42% (versus 30% for their peer group). They are working on a transformative acquisition with deep involvement from the CEO.
This example – and countless others like it – shows that organization design matters.
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