| | Excerpt from WWW.NDMA.COM, © 2022 N. Dean Meyer and Associates Inc.
SEVEN PRINCIPLES OF STRUCTURE
These seven Principles guide the design of organization charts:
[Click on a Principle for its explanation.]
Principle 1: Golden Rule The Science of Organizational Structure: Definition of Empowerment
Authorities and accountabilities must match.
"Once we adopted the Principles, we had a framework that provided a basis for any decision, defused the inevitable turf battles before they ever began, and accelerated our learning process in a way that
probably could not have occurred otherwise." |
John Benci
General Director, MIS
The Canadian Wheat Board |
Principle 2: Specialization and Teamwork The Science of Organizational Structure: Value of Specialization
You can only be world-class at one thing at a time; but you can't specialize if you can't team.
Principle 3: Precise Domains The Science of Organizational Structure: Precise Domains
As Robert Frost wrote, "Good fences make good neighbors."
Principle 4: Basis for Substructure The Science of Organizational Structure: Basis for Substructure
Divide a function into groups at the next level based on what they're supposed to be good at.
Principle 5: Avoid Conflicts of Interests The Science of Organizational Structure: Avoid Conflicts of Interests
Don't expect individuals to go in two opposing directions.
Principle 6: Cluster by Professional Synergies The Science of Organizational Structure: Cluster by Professional Synergies
Cluster groups under a common boss based on similar professions.
Principle 7: Business Within a Business The Science of Organizational Structure: Business Within a Business
Every manager is an entrepreneur whose job is to satisfy customers (internal and external) with products and services.
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