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Leading Organization Design: How to Make Organization Design Decisions to Drive the Results You Want by Amy Kates, Gregory Kesler

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Chapter 6. Choose the Best Grouping Option

CHOOSING THE BEST ALTERNATIVE FROM AMONG the classic design options is the core task of strategic grouping. There is no single right answer to the puzzle; the key is to select the option that delivers the most benefits with the fewest risks.

The work begins by laying out some hypotheses about which options best support the capabilities you are trying to create. We recommend that leaders define at least two high-level options (or hypotheses) and then test them by calling out the likely benefits and risks of each. We often start with "bubble" diagrams that help show relationships among component parts that might come together in a design. If we want to consider organizing around markets, for example, we ...

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