Beyond Functions

March 15th, 2013

By now, the functional model has become the conceptual core of nearly all organizational structures, public and private. It is so ingrained in the daily activities of most companies that it is rarely questioned. Even when functions are seen as “shared services,” which would place them relatively low on the org chart in many companies, they are typically the most permanent parts of the enterprise. Business units come and go with the product life cycle, but finance, HR, marketing, legal, and R&D last forever. Even in matrix organizations, the functions maintain quite a bit of power, managing career tracks and a huge portion of discretionary investments.

The value of functions is undeniable; no company could do without them. But the business and organizational models that govern functions need updating. How about a model based on capabilities instead?

Click here to read the entire article from Booz&Co’s Strategy+Business.

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