Organizational Design vs. Organizational Chart
When discussing organizational design, many people refer to the organizational chart – the diagram showing who reports to whom. But design and a diagram are not the same. Organizational design also encompasses the processes behind decisions about the chart: Who works with whom? Who reports to whom? Who is responsible for which decisions? The answers depend on the underlying design.
In our ever-changing world, some organizational forms become fashionable while others are considered outdated. However, mindlessly following trends without considering the overall organizational design can be risky. Design is about more than boxes and lines on paper.
A strong organizational design is based on alignment among the collective task, the structure that supports it, and the processes that connect those responsible for its execution. Neglecting any element, or focusing too much on a trendy new form (like a leaderless organization), can leave you with a paralyzed organization.