What's the Right Organization Structure?

Here's a note I recently received from the president of a company we've been working with:

“I am looking for a book/information on organizational structures. However, there's a twist. We are currently set up as most companies are, with a vertical (silo) model. I want to change this. Part of our vision is to be a ‘knowledge-based’ company. In order to accomplish this, information has to flow from the outside-in and from the inside-out. The more effective the transmission of information, the more connective the organization will become.

In order to do this, I feel that we need a circular ‘network’ model, rather than a vertical integration model. We want to be like a multi-dimensional, living organism (e.g. the human body) where information/knowledge is exchanged and flows unimpeded throughout the organization. Projects get done through a collaborative workplace and information is available centrally to everyone.

I'd appreciate your advice/recommendations.”

We have long believed that form follows function. In other words, first determine what the key goals/objectives, business models, and key processes are and then put a structure in place to support that. So "the right organization structure" is impossible to generalize in a book. You can find some of my work on systems and structure on our web site at www.clemmer.net/excerpts/org_structure.shtml.

We tend to work with Clients to shape a structure and support systems after work like process management has been completed. You can see our approach to process management at www.clemmer.net/process.shtml (including key slides from the executive overview of this approach).

What’s your perspective/experience with this issue?