Organizational Structure Impact on Product Development PPT


This PPT slide, part of the 61-slide Enterprise Organizational Assessment Toolkit PowerPoint presentation, presents a comparative analysis of 2 organizational structures—Option A and Option B—focusing on their implications for product development. It visually distinguishes between a functional sector approach and a product/market-centered business unit sector.

In Option A, the structure is hierarchical, with a Sector General Manager overseeing product functions and marketing and sales teams. This model shows 3 distinct development paths (Development A, B, and C) under the product functions, indicating a more segmented approach. The slide notes that this structure results in a greater number of steps from market to tie breaker, suggesting potential delays in decision-making and responsiveness to market changes. The net effect on product development is described as "harder," implying challenges in agility and efficiency.

Conversely, Option B adopts a more integrated approach, where the Sector General Manager supervises 2 Business Unit General Managers. Each business unit has its own development and marketing and sales teams, allowing for a direct connection between product development and market needs. This structure reduces the steps from market to tie breaker to two, enhancing responsiveness and streamlining processes. The slide indicates that this model makes product development "easier," suggesting improved efficiency and alignment with market demands.

The visual representation and accompanying notes provide a clear contrast between the 2 options, highlighting the operational implications of each structure. This analysis is crucial for decision-makers considering organizational design changes aimed at optimizing product development processes.




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Organizational Design Organizational Structure Product Development Sales

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