PM Perspectives: Org Structure and Daily Challenges
Why does org structure matter to a Product Manager?
Exploring the significance of organizational structure for Product Managers leads us to a fascinating concept known as Conway’s Law. In 1967, Melvin E. Conway introduced a groundbreaking idea: the systems we develop often mirror our company’s communication patterns. This means if your organization operates in isolated silos, it’s likely that your products will reflect those divisions.
Why now?
“Efficiency Reloaded” is the buzz for 2024. Picture this: McKinsey’s “The State of Organization 2023 report” finds a third of leaders eyeing efficiency as a top goal. They’ve linked clear roles to better accountability, a key to scoring high on the Organizational Health Index. What’s the ripple effect? A shift towards leaner teams and flatter hierarchies. Looks like it’s all about cutting the fat and keeping it sleek in the corporate world.
Skipping the deep dive into every org structure out there, let’s cut straight to a summary of key problems and how they might tie back to the way organizations are shaped.
Key Challenges and possible Root Causes in Organizational Decision-Making and Structure.
| Problem | Possible Root Cause |
|---|---|
| Slow decision making from Directors. | Dual authority relationships and a balanced power dynamic between product management and functional areas can lead to decision paralysis if they are not aligned under a single strategy. |
| Top management drawn into day-to-day decisions,limiting strategic time | Increased volume of new products and rapid technology changes, or Inadequate delegation of authority, or Decision paralysis due to lack of alignment on strategy between product management and functional areas. |
| Decision quality concerns at lower levels and morale issues among technical staff. | Increased joint decisions at low levels not always aligned with company interests, or Technical staff dissatisfaction with non-technical roles. |
| Increased need for coordination | Growing complexity in products necessitating more cross-functional decisions, or Growing number of products requiring more cross-functional decisions, or Monolith product teams with no clear distinctions in team topologies (Streams, platform, enabling, complicated subsystem). Learn More |
| Difficulty in managing diverse and rapidly changing product lines | No product teams; the diversity and pace of change exceed the information processing capacity of general and functional managers. |
| Product teams failing to create certain technical capabilities internally. | Product teams operating on tight schedules often lack the time to develop technical capabilities. This underscores the need for specialized platform or complex subsystem teams. Learn More |
| Good talents leaving the company | Poor change management following a reorganization has left employees unclear about its objectives, leading them to associate the reorganization with instability. |
References
- “Matrix Organization DesignsHow to Combine Functional and Project Forms” paper by Jay R. Galbraith
- Team Topologies: Organizing Business and Technology Teams for Fast Flow Book by Manuel Pais and Matthew Skelton