Every layer is a bad layer. Without all those
layers, your company can become
lean and agile.
Simplify, remove complexity...
Hewlett-Packard set the
pattern for a divisional structure of an
long ago. Divisions aggregated into units such as Test and
Measurement Organization are the core dominant organizational
entities of the company. When John Chambers, President and CEO of
Cisco Systems looked around for large-scale organizational models
he found Hewlett-Packard to be the best.
When Cisco Systems
divisionilized, they established councils that operate across
business units to force cooperation on key
innovations, customers and markets. These councils are composed
primarily on marketing and sales people. Furthermore, the company
continued to reward key executives on the company’s overall
performance in order to prevent competition and promote cooperation
Quantum launched Plus
Development division to create an upside opportunity for people
after the growth of the parent company has slowed. Using vehicles
such as phantom stock it provided a feel and
reward of a startup and
helped Quantun retain key staffers who might have left the company
and formed a startup of their own.
To improve communication
and cooperation between divisions, Cirrus Logic use cross-divisional
councils as a platform for defining new technologies and developing