Blog Post
Agile Organization Design: Moving Beyond Size Logic
July 10, 2024
In the late 90s, many companies adopted a 150-person rule for organizational units to maintain manageability and cohesion. However, this approach often led to fragmented products and complex management structures, making strategic execution a challenge.
Today, a new idea is emerging. Instead of splitting units by size, companies are forming dedicated product groups with full P&L responsibility, encompassing entire product families. This shift has streamlined strategic units, reduced reporting lines, and enhanced agility in responding to market changes.