This PPT slide, part of the 103-slide Organization Design Toolkit PowerPoint presentation, outlines a product-based organizational structure, emphasizing its key features, appropriateness, and advantages. It presents a framework where product groups report directly to the board, promoting a streamlined hierarchy. This structure is characterized by a clear separation between strategy formulation and execution, which can enhance operational efficiency.
The appropriateness section identifies target organizations that would benefit from this model. High technology firms that prioritize global product excellence are highlighted, alongside companies with multiple products aimed at different customer segments. It notes that this structure suits organizations with low synergies across product divisions, which may have distinct distribution channels and operational requirements. Additionally, it addresses firms where product development cycles are critical, whether short or long.
The advantages of this structure are significant. It allows for a concentrated focus on producing high-quality products while ensuring rapid development cycles. Clear accountability is established within product divisions, facilitating strong control over outcomes. The model also supports the divestment or addition of products with minimal disruption to overall business operations.
However, the slide also acknowledges potential drawbacks. Organizations may face challenges in responding to local market conditions, as teams might need to collaborate across multiple divisions. There’s a risk of developing product-based silos, which can hinder cross-functional communication. Competition for resources between business units may arise, potentially impacting overall efficiency. This nuanced view of the product-based structure provides a comprehensive understanding for potential customers considering its implementation.
This slide is part of the Organization Design Toolkit PowerPoint presentation.
This presentation is created by a team of ex-EY consultants. It provides a robust framework used by tier-1 strategy consulting firms for Organizational Design and its implementation.
EXPLORE MORE SLIDES FROM THIS PRESENTATION
EXPLORE MORE PRESENTATIONS ON
Flevy is the world's largest knowledge base of best practices.
Leverage the Experience of Experts.
Find documents of the same caliber as those used by top-tier consulting firms, like McKinsey, BCG, Bain, Deloitte, Accenture.
Download Immediately and Use.
Our PowerPoint presentations, Excel workbooks, and Word documents are completely customizable, including rebrandable.
Save Time, Effort, and Money.
Save yourself and your employees countless hours. Use that time to work on more value-added and fulfilling activities.
