Regional vs. Functional Reorg LO15137

Gordon Housworth (ghidra@modulor.com)
Sat, 27 Sep 1997 11:24:16 -0400

Seeking realistic options: I'm presently advising the operating committee
(minus the COO) of a US-based international firm that is reorganizing
itself. The firm is extremely hierarchically-reflexive, command-driven by
a powerful CEO and COO and this is the first opportunity (and perhaps last
if they fail to seize the opportunity) for this operating committee
composed of regional and business unit (functional) managers to define
their preferred "org chart."

Seven org chart options have been integrated and reduced to two - largely
split along the regional-functional divide. Egos and posturing are
genuinely asserting themselves, even to the point of threats to resign if
"their" approach was ignored. Each camp has had to take the opposing org
structure and adapt it as if they had "to live with it," but they cannot,
as a group, reach consensus about either adaptation under my terms that
"they support it in the session and will not subvert it when they leave."

As the regional heads had to return to Asia and Europe, we defined twelve
characteristics that must be solved in the new org structure and have
adjourned to weight each of the two proposals against each structure.

I'd be interested in hearing any practitioners recommendations.

Best regards, Gordon Housworth
Intellectual Capital Group
ghidra@modulor.com
Tel: 248-626-1310
http://www.modulor.com

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Gordon Housworth <ghidra@modulor.com>


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