This PPT slide, part of the 103-slide Organization Design Toolkit PowerPoint presentation, outlines a customer-based structure, emphasizing its design and operational benefits. It highlights key features such as the organization being structured around customer divisions that report directly to the board. This structure is less hierarchical, allowing division management to take on greater responsibility. Importantly, it separates strategy from execution, which can enhance focus and efficiency.

The slide identifies the types of customers that the organization serves, categorizing them into four distinct groups: Personal Banking, Business and Commercial, Global Banking and Markets, and Private Banking. This segmentation allows for tailored approaches to meet the specific needs of each customer type.

Appropriate organizations for this structure are those with a strong marketing and customer service culture, as well as those where customer needs vary significantly. The advantages listed include the ability to drive rapid customer service and product delivery, which can be crucial in a competitive environment. It facilitates the use of customer knowledge, leading to better decision-making and accountability within divisions.

However, the slide also notes potential drawbacks. These include the risk of creating silos within customer divisions, which can hinder collaboration. There’s also a mention of competition for resources between business units, which could detract from overall organizational efficiency.

This structure is designed to enhance responsiveness to customer needs while maintaining a clear focus on delivering value. It’s a strategic choice for organizations looking to improve customer engagement and satisfaction while managing diverse customer expectations effectively.

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