“It is not structure but how you execute taking advantage of the benefits.”

GM, Specialty Materials Manufacturer

Summary of Survey on Organizational Structures

Highlights from the 59 responses include :

• Around half of members describe their organization as functionally matrixed (where most key functions report both to SBU and corporate functional heads.)
• A majority of respondents (88%) are somewhat or very satisfied with their current organizational structures.
• Functions regularly reporting only to an SBU head are Sales, Operations, Marketing, Supply Chain, and Strategy/Business Development. Functions that are regularly matrixed included Finance and HR. Legal is the only function that reports only to corporate for the majority of respondents.
• Around 90% of members report using Functional Councils, and 60% use Regional Councils.
• Members with functionally matrixed organizations reported the greatest use of Functional and Regional Councils.
• Most members consider Functional and Regional Councils to be at least Somewhat Valuable, with Functional Councils getting generally more favorable marks than Regional ones.
• Most members feel that their current reporting structures allow them to meet key business goals.
• The greatest complaints that members voiced about their reporting structures are that they can lead to slow decision making, as well as decisions that are made independently rather than as an enterprise.
• Companies with decentralized reporting structures were more likely to indicate that their structure makes them flexible, and less likely to indicate that their structure helps them make decisions as an enterprise.