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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 9. Allocate Power in the Matrix: A Case Study in Governance

THE OBJECTIVE IN APPLYING THE GOVERNANCE levers is to find the right mix to support the capabilities you seek. The story of Apparel Brands Inc. (ABI; although this is a real company, the name has been changed) offers valuable insights into how the framework can be used.

ABI is a highly successful $10 billion marketer of apparel and accessory brands. Its brands are very visible all over the world, and its quality products enjoy attractive margins as a result of the power of those brands. The organization had strong product-focused business units, matrixed with geographic divisions. The structure had served the company well for more than a decade. But ABI began to discover that its ...

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