Organizational architecture is the underpinning of business success. It is the structure of an organization – both visible and invisible – that enables business strategies to unfold effectively. Every organization has architecture, whether it has been purposely developed or not.

Organizational architecture shows itself in the hierarchies on the organizational chart, the patterns of interaction between individuals and groups, the flow of information up and down and across the organization, and in a host of other components.

The purpose of organizational design is to channel individual and group behavior into patterns that contribute to effective organizational performance. However, in practice, it frequently does little to affect business performance.

Why? Because when conducted in isolation, organizational design is akin to rearranging the storefront window display without changing the merchandise inside.

Good organizational design is neither a stand-alone decision nor a one-time event. It is informed by the business strategy and influenced by historical and environmental factors as well as business evolution. It must align with both the infrastructure used by management to drive core processes and with behaviors necessary for effective operation.

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