Innovative Organizations are enabled and supported by a scalable organizational design. Organizations need to scale to growth, without needing reorganizing as they grow.
Reorganization is perhaps the biggest drain on productivity, save for mergers and acquisitions.
Most organizations are structured around business functions, activities that theoretically support any and all business activity: sales, operations, human resources, etc.
But organizations actually operate around business lines: products and services designed for particular markets. They try in various ways to represent these business lines organizationally within or around the business functions.
The problems occur when these business lines increase in number and complexity, or simply change to serve changing markets. And these problems always occur, which is why reorganization is so common.
The answer is a design that allows the business lines and business functions to coexist and coordinate yet scale independently. This allows the business functions to fully support the business lines, and the business lines to fully support the business.
Scalability is only one aspect of this growth-oriented organizational design. The design also enables, fosters, and supports the activities that lead to increased productivity, and thus to economic growth.
That means allowing frequent experimentation with innovative products and services without adversely impacting the organizational structure. Business lines are easily added and, if unsuccessful, removed without a design change.
This is an organizational design that maximizes teamwork, communication, and accountability. And a design that clearly delineates the strategic and tactical aspects of the organization, allowing both the top and bottom lines to increase simultaneously.
The right organizational design enables and supports continuous innovation and economic growth.