When organizations struggle to perform, many CEOs look to strategy, people, or processes for the answer. Yet the most fundamental issue is often overlooked. The structure itself is wrong. Roles are stacked too high or spread too thin, accountability is unclear, and decision-making slows to a crawl.
This is not a people problem. It is a design problem. And organization design is a CEO accountability.
Why the CEO Owns Design
The CEO is the only person who can see the organization as a complete system. Others look upward or downward in the hierarchy, but only the CEO can see across all functions and time horizons. That perspective is essential for deciding how many layers are needed, how accountability should flow, and where to position key leadership roles.
When the CEO delegates organization design to HR or a consultant without leading the process, the structure often reflects personalities rather than work complexity. It may look tidy on a chart, but it will not support the strategy.
The Science Behind the Art
The science of organization design is rooted in complexity of work, the measure of how much problem-solving and decision-making each layer must handle. Every organization has a natural number of layers based on its size, scope, and strategy. Too many layers create overlap and confusion. Too few layers create overload and missed work.
Applying this science ensures that each role is defined by the work it must do, not by who happens to be in it. Once the structure is set, the CEO can apply the art of leadership: aligning people, shaping culture, and enabling managers to add value to their teams.
Why It Matters
When design is right, accountability becomes clear, decisions flow faster, and managers can focus on value-added work. When design is wrong, even the best leaders and systems cannot compensate. That is why CEOs must treat organization design as a core business discipline rather than a one-time event.
In my experience, organizations that get this right outperform their peers because everyone is focused on the right work at the right level. The CEO’s leadership creates clarity, alignment, and confidence throughout the organization.
Learn How to Apply the Science
If you are a management consultant or leader who supports CEOs, join me for the CMC Canada Master Class: “Beyond the Org Chart – The Science and Art of Organization Design.”
In this two-hour session, we will explore how CEOs and consultants can apply these principles to create organizations that truly perform.
