Organization Design For Startups

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Organization Design For Startups

Joaquin

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What is organization design?

When thinking about organization design, there are two aspects to concentrate on: the

architecture, which f ormally def ines authority and the division of labor (of ten represented by

an org chart); and operational processes, which def ine how shit gets done (of ten called

Standard Operating Procedures or SOPs).

Formal vs. Informal Design

Formal architecture comes from a need f or clarity around decision making, roles, responsibility, and

authority; creating too much f ormality in the architecture can lead to less f lexibility and a reliance on titles

and positional power, as opposed to ideas and knowledge, in decision making. The need f or clarity

around problem solving, collaboration, and communication leads to f ormal operational processes which

can reduce ambiguity and create more predictable results. Operational processes that are too f ormal,

however, can erect barriers to creativity, create bureaucracy, and lead to less coordination across the

organization.

A Model for Organization Design

Crossing (f ormal and inf ormal) process with (f ormal and inf ormal) architecture creates a grid of f our

types of organizations I’ve named the Hive, the Forest, the Fractal, and the Sandbox. Curious where your

organization f its in? Take this assessment.