[HN Gopher] The Skill of Org Design
       ___________________________________________________________________
        
       The Skill of Org Design
        
       Author : impostervt
       Score  : 269 points
       Date   : 2021-10-06 11:58 UTC (11 hours ago)
        
 (HTM) web link (commoncog.com)
 (TXT) w3m dump (commoncog.com)
        
       | blueyes wrote:
       | I want to put in a plug for Cedric. He is consistently one of the
       | smartest writers about tech online. His writings about
       | naturalistic decision making have changed the way I think about a
       | lot of things in business.
       | 
       | https://commoncog.com/blog/the-tacit-knowledge-series/
        
       | Ahan515 wrote:
       | Wow, MPI gets Nobel prizes in a row!
        
       | xivzgrev wrote:
       | This article reminded me of a group I founded in college. I also
       | was motivated to ensure it lived on, which it has.
       | 
       | 4 things worked there 1) it was a group to help people get jobs,
       | which is an ongoing market need 2) it demonstrated success
       | quickly and provided a template for that success, so people were
       | motivated to invest in keeping it going 3) we made early cultural
       | decisions that selected the right kind of people 4) we set out
       | clear 5 year goals, and had every president update the 5 year
       | plan and their own 1 year plan.
        
       | ashika wrote:
       | people will seemingly hop aboard anything that gives them
       | authority over other people. i am reminded of that scientology
       | grade chart that leaked a while back[1]. the end result of each
       | training was usually the ability to give the training to others.
       | so while all orgs obviously want to remain on a positive tipping
       | point with the general membership rising to serve hierarchical
       | functions over time, scientology teachings seem to exist mainly
       | an opportunity to advance relative to other scientology members.
       | 
       | [1] http://scientologymyths.info/definitions/gradechart.gif
        
       | j16sdiz wrote:
       | In the press release:
       | 
       | >> "This concept for catalysis is as simple as it is ingenious,
       | and the fact is that many people have wondered why we didn't
       | think of it earlier," says Johan Aqvist, who is chair of the
       | Nobel Committee for Chemistry.
        
       | divan wrote:
       | Such a great read.
       | 
       | I'm trying to build a non profit org in a country with almost no
       | culture of non profits and with zero experience in org design.
       | Most of articles or podcasts on running non profits seems to be
       | all the same - define vision/mission/strategy, plan budget,
       | motivate people, do effective communication etc.
       | 
       | But this article is the first I found that actually provides some
       | framework of thinking about the org design to me. Very
       | refreshing. What should I read/watch/listen next (except links
       | mentioned in the article)? Maybe even something specific to
       | creating/growing non profits?
        
         | rawgabbit wrote:
         | As a contrarian, I think the author's advice is actually wrong.
         | Organizations do not exist in a vacuum. They are not an end in
         | itself. The purpose of an organization is to fulfill a mission.
         | The organization should be designed to execute its mission in
         | the most cost effective and transparent manner.
         | 
         | With Non-profits, your customers are your donors. Who is
         | funding you (sales)? What do they want (features & results)?
         | How do you show that you are spending their money wisely
         | (metrics & governance)? The organization is nothing more than
         | people put in place to solidify and execute those needs.
        
           | bsedlm wrote:
           | > The organization should be designed to execute its mission
           | in the most cost effective and transparent manner.
           | 
           | I argue that this describes a specific type of organization
           | in a specific environment (context). namely a business
           | organization in a capitalist market.
           | 
           | There exist other types of organizations. (However I may be
           | blurring the line between organization and institution)
        
         | xivzgrev wrote:
         | The author emphasizes context a lot. After you've read
         | resources here, maybe get intros to entrepreneurs in your area
         | who successfully built larger companies, and how they iterated.
         | What was the context they operated in, and what's relevant to
         | your context?
        
       | KingOfCoders wrote:
       | I have two principles:
       | 
       | If possible do not split responsibilty between teams. Give
       | responsibilities (e.g. security) as a hole without splitting.
       | 
       | Think about what discussion you want to have in the leadership
       | meetings, then decide who needs to sit at the table.
        
       | dr_dshiv wrote:
       | I'm really impressed with this article and the others linked. The
       | bits on professional services and thinking backwards were
       | extremely helpful!
        
       | chewyshine wrote:
       | Notice how there are no clear criteria for evaluation in this
       | space? No math. No models. Just loose concepts strung together
       | with words and sprinkled with calls to authority (e.g., Andy
       | Grove) to add credibility. No evidence. No science.
       | 
       | As an organizational "scientist" it's amazing to me that
       | organizations are ubiquitous and yet we know so little about how
       | to construct good ones. Software design is in a better state IMO
       | but not by much.
       | 
       | Here's a simple question that should be answerable in any
       | approach to org design. What's the optimal *span of control* for
       | management at each level in the organizational hierarchy? If you
       | can't answer this question, you can't "design" an organization.
        
         | sixdimensional wrote:
         | Actually, there is a entire field dedicated to this
         | (disclaimer: I studied it at uni, plus CS and info systems) -
         | organizational studies [1]. It has subdomains such as
         | organizational structure/models, behavior, communication, etc.
         | Much of it backed by theories, studies and more, ranging in
         | disciplines.
         | 
         | Time and motion studies (for example) were part of the
         | scientific management revolution for industrial management [2].
         | There have been both qualitative and quantitative studies of
         | all kinds of things - organizational forms, people networks
         | (things like, Dunbar's number[3]), power distribution (ex. work
         | of Pfeffer), etc. I could go on.
         | 
         | I do think we are reliving an era of interest in management by
         | data and metrics, much like that of the industrial revolution
         | and scientific management. Nothing wrong with using science and
         | quantitative measures to optimize, but any human who has been
         | subject to purely management by quantitative objective will
         | likely tell you it often becomes.. rather, inhumane. This is
         | often what led to automation, I feel - to remove the human
         | element that was crushed by industrial efficiency.
         | 
         | I suspect this is why the qualitative balance is important (and
         | no less scientific - science can be logic not just metrics
         | right?).
         | 
         | My two cents...
         | 
         | [1] https://en.wikipedia.org/wiki/Organization_studies
         | 
         | [2] https://en.wikipedia.org/wiki/Time_and_motion_study
         | 
         | [3] https://en.wikipedia.org/wiki/Dunbar%27s_number
        
           | throwoutway wrote:
           | OP said they were an organizational scientist, so I would
           | assume they know this. However the article rather
           | hypothesizes and references recent books like Working
           | Backwards, rather than long-established theories about org-
           | design (like Mintzberg, who dates to the 60s). I've studied
           | many of these and they are very thorough (though none are
           | perfect)
           | 
           | I had a similar thought on another commoncog.com post. The
           | author didn't seem to research deeply before postulating
           | opinions. Looks like this site allows members to post so I
           | don't know if it's the same person
        
             | shadowsun7 wrote:
             | https://commoncog.com/blog/the-hierarchy-of-practical-
             | eviden...
             | 
             | I would ask the OP a simple question: what organisations
             | have they built, and where are they now?
             | 
             | Longer, but establishes the epistemology of the blog:
             | https://commoncog.com/blog/practice-as-the-bar-for-truth/
             | and https://commoncog.com/blog/four-theories-of-truth/
        
               | throwoutway wrote:
               | Sorry but providing three more links to your blog does
               | not contribute to the threaded discussion. If you'd like
               | to ask OP that question, you can ask OP on OP's comment.
               | 
               | Otherwise, I'm still not sure why you don't include both
               | (well established) theories, in addition to your own
               | practice in your post.
        
         | Closi wrote:
         | > Here's a simple question that should be answerable in any
         | approach to org design. What's the optimal _span of control_
         | for management at each level in the organizational hierarchy?
         | If you can 't answer this question, you can't "design" an
         | organization.
         | 
         | Of course you can design an organization without knowing the
         | optimal span of control at each level, just as you can design a
         | logo without math and scientific models. The answer anyway will
         | just be 'it depends, and span of control varies not only
         | between different businesses but also different roles and even
         | different individuals'.
         | 
         | Lots of design is done via intuition and experience rather than
         | concrete engineering anyway, and OD is clearly an area where it
         | is more about understanding the goals of an organisation and
         | building a people strategy around it rather than perfect
         | mathematical optimality.
        
           | ethbr0 wrote:
           | Or, in other words -- you show me a calculated optimal span
           | of control, and I can show you an individual at my company
           | that would wreck it (either as too broad or too narrow).
           | 
           | Org design suffers from the same problem as economics and
           | psychology: you're designing based on a fundamental discrete
           | unit (a person) that's incredibly variable.
           | 
           | Except unlike the other two, you're typically not dealing in
           | large enough numbers that you can handwave away differences
           | and substitute averages.
           | 
           | Furthmore, any hierarchical org (which is to say, all, either
           | formally or informally) exacerbates the problem in that you
           | have some (variable!) individuals with even greater ability
           | to influence the sum.
           | 
           | Which isn't to say it's hopeless, but is to say (to your
           | point) that any approach needs flexibility and intuition.
           | 
           | Or as the author puts it: _" As a result, you cannot predict
           | how the humans in your organisation will react to your
           | changes -- not with perfect accuracy, at least. So the nature
           | of org design demands that you iterate -- that you introduce
           | some set of changes, watch how those changes ripple out in
           | organisational behaviour, and then either roll-back the
           | change, or tweak in response to those observations."_
        
         | akomtu wrote:
         | Models need input and there isn't much knowable input in modern
         | organisations. A unit of organisation is a person with complex
         | internal state. Two units of type M could've competed for
         | another unit of type F and one of them has won, while the other
         | is secretly sabotaging work of the first - an example of
         | chaotic to an outsider behavior because of hidden state. When
         | all sorts of interactions are allowed, particles of
         | organisation interact in all sorts of bizarre ways. It's hard
         | to model a gas where particles have memory, long distance
         | interactions with ten types of forces, mutate into other
         | particles, teleport back and forth according to God knows what
         | reasons and so on. We either resort to making only very general
         | predictions or we cool down the particles, restrict their
         | freedom to bare minimum and make them predictable. Rogue
         | regimes do exactly this: the only interaction they allow is a
         | strictly top-down "who fears whom", so everything is local and
         | predictable.
        
         | beaconstudios wrote:
         | But we do have a science of organisation design; management
         | cybernetics are 70 years old, and as this post hints at, the
         | field of complex systems theory (also 70) applies to
         | organisations. But these fields don't find context-independent
         | answers like the one you asked for; an extremely important
         | trait of systems engineering (as, again, was mentioned in the
         | post under "form-context fit") is that systems have fitness for
         | a specific environment or context. Answers are adaptive and
         | must be approached in-context, not declared to be canon in some
         | "objective" scientific whitepaper.
         | 
         | If it's math you're after, look at Control Theory or Nonlinear
         | Dynamics. They work well for engineering purposes, but good
         | luck modelling individual human behaviour accurately, let alone
         | mathematically.
        
         | burlesona wrote:
         | I would argue that organizations are complex adaptive systems
         | and thus there is no optimal span that holds for all or even
         | most organizations at all or even most levels. As a solution,
         | smart organizations should build in feedback loops and allow
         | rapid experimentation and iteration to evolve the spans so they
         | respond well to the current conditions at each level and each
         | point in time.
         | 
         | Note that setting up an organization to be so responsive and
         | adaptive is itself a difficult organizational design problem.
        
         | bsedlm wrote:
         | > Notice how there are no clear criteria for evaluation in this
         | space? No math. No models. Just loose concepts strung together
         | with words and sprinkled with calls to authority (e.g., Andy
         | Grove) to add credibility. No evidence. No science.
         | 
         | Indeed, this is a very good observation from which many ideas
         | occur to me:
         | 
         | Which one do I prefer?
         | 
         | Is one obviously better? (I don't think this is a good
         | question: It's like asking which is better, an API reference (a
         | math textbook with a long list of theorems and definitions) or
         | an API tutorial (a math textbook which holds your hand and
         | explains "intuitively"). It depends on what you need).
         | 
         | Isn't it the case that initial explanations (explorations into
         | a new topic) are like this at first, and over time (usually
         | through work spanning multiple generations) the theories become
         | more mathematical?
         | 
         | All in all I wonder about the difference between these two
         | contrasting approaches towards understanding. And I wonder
         | about it in such abstract (philosophical?) terms that the
         | specific "organizational design" is just an instance of what
         | I'm curious about; which is the different ways to explain the
         | same things and other ways to approach "understanding" in
         | general.
        
         | jsjohnst wrote:
         | > Software design is in a better state IMO but not by much.
         | 
         | Looking at all the crap software being built today, I am not
         | sure I agree even with the caveat of "not by much".
        
         | photochemsyn wrote:
         | A lot of data structures from compsci like trees, graphs,
         | lists, seem suited to form the basis of mathematical modeling
         | of organizational structures, with the goal of optimizing for
         | particular cases.
         | 
         | For example, in modeling an industrial system like a chemical
         | refinery / synthesis unit for optimal throughput, one could
         | also model the human organizational structure needed to safely
         | and efficiently operate that system. Say there were 10 major
         | steps/processes being overseen; failure of any one could be
         | catastrophic. So, perhaps each unit gets its own manager with
         | veto power over the whole process if their unit is down (a flat
         | structure at this level), and each manager oversees a
         | hierarchically-structured team (a tree at this level, perhaps
         | experience-based).
         | 
         | Other organizations would need a completely different
         | structure, but it should be structured around the fundamental
         | goal. Thus, the concept of 'universal organization designer'
         | might be so broad as to be not very useful, i.e. specialization
         | in design domains is probably important.
         | 
         | I recall this coming up in a discussion of why the optimal
         | organizational structure for Tesla is very different from that
         | for SpaceX for example, so just moving 'the best managers' from
         | one to the other wouldn't work out.
        
         | afarrell wrote:
         | Before demanding that, first come up with metrics for the
         | optimal attributes of a marriage. What is the optimal number of
         | loads of laundry to do each month? The proper number of silly
         | dances to invent?
         | 
         | https://en.m.wikipedia.org/wiki/McNamara_fallacy
        
           | RayVR wrote:
           | This is a ridiculous critique of the argument. Just because
           | everything can't be quantified doesn't mean we can't quantify
           | some things.
           | 
           | I worked in quant finance for many years so I'm very familiar
           | with low signal to noise in complex systems. You can't throw
           | your hands up simply because you'll never capture everything
           | in your models.
           | 
           | This field is so far from my areas of expertise but I imagine
           | there are lots of smart people investigating and putting
           | structure around these questions.
        
             | nzmsv wrote:
             | Taleb makes an argument in Black Swan that a bad model can
             | do more harm than no model at all, and that "we can't throw
             | our hands up" is not a valid excuse either: sometimes
             | that's exactly the right call.
        
             | afarrell wrote:
             | Right. It is also false to say there are no useful numbers
             | in this space. For example: Dunbar's number is 150.
             | 
             | But it is misleading to expect an employee to maintain
             | relationships with 150 people--they also have a family and
             | friends.
             | 
             | https://en.m.wikipedia.org/wiki/Dunbar%27s_number
        
               | pintxo wrote:
               | From the linked wikipedia:
               | 
               | > However, enormous 95% confidence intervals (4-520 and
               | 2-336, respectively) implied that specifying any one
               | number is futile.
        
               | clairity wrote:
               | what's more interesting about dunbar's number is that it
               | suggests a potential maximum for the size of an effective
               | organization (say, 520) rather than pinpointing an
               | optimum. the idea of a maximum like this appeals to
               | intuition, so it's worth studying more (and more
               | quantitatively), but opposes ambition, which is probably
               | why we don't have plentiful research in this area
               | already.
        
             | rocqua wrote:
             | > You can't throw your hands up simply because you'll never
             | capture everything in your models.
             | 
             | You can however, decide that the key drivers in your domain
             | are essentially impossible to capture quantitatively and
             | decide not to model the domain scientifically. This applies
             | especially well to cases where 'tacit knowledge' is
             | important. Because that knowledge is hard to formulate, let
             | alone formalize, it is really hard to quantize.
        
           | jancsika wrote:
           | Do regular blood tests on a randomized sample of married
           | couples and measure the stress levels.
           | 
           | Once you've found the couple with the lowest overall levels,
           | book them on a touring circuit so audiences can ask them how
           | many silly dances they invented. Since the couple doesn't
           | know whether that's a source of their happiness or not, it
           | won't really get us any closer to an answer. But at least the
           | couple's resulting stress from the tour and impending marital
           | problems will teach the audience about the limits of their
           | method of inquiry.
        
             | Grakel wrote:
             | It'll be the couple with the highest income to work hours
             | ratio.
        
               | pc86 wrote:
               | Below a certain [unknown] ratio, absolutely. Above it,
               | I'm not so sure.
        
           | brutusborn wrote:
           | Thanks for the link.
           | 
           | I think there can be a useful middle ground, where "fuzzy"
           | descriptions are used with models to explain strategies that
           | are developed organically.
           | 
           | I empathise with the OP on the lack of modelling in this
           | space. I think it shows a lack of maturity of the field since
           | good, simple models are usually used to produce fundamental
           | understanding in a field.
        
           | korla wrote:
           | When you can't measure what's important, what you can measure
           | becomes important.
        
             | ethbr0 wrote:
             | The more drawn out / harmful form is: when you mandate that
             | only the measureable is valid, and something is hard (or
             | impossible) to measure, everyone comes up with reasons it's
             | not important.
        
         | atoav wrote:
         | If we talk about organizational structure, the one real
         | question is whether you can just look at the structure and
         | figure out a organisations success just based on that.
         | 
         | My feeling is that this could be a good way to filter out
         | highly dysfunctional organizations. However I don't think you
         | can find successful ones that easily, let alone come up with an
         | magical organizational structure that automatically leads to
         | success.
         | 
         | That might be because there are a lot of tiny details that
         | might shape a organization much more than the pure structure of
         | departments and roles. Let's say organization A and
         | organization B have the same structure and do the same thing in
         | the same field, but organization A has a good HR department
         | which manages to attract good people and have them work for
         | decades at the company, while organization B has a bad HR
         | department, hires incompetent, fraudulent and downright nasty
         | people, who don't stay on the job for long - wouldn't this make
         | such a huge difference that differences stemming from the pure
         | structure of the organization would be drowned out?
         | 
         | Of course you could now think about how a organizational
         | structure could prevent this from happening, and maybe with the
         | right structure and people checking each others decisions the
         | likelyhood of such a bad outcome could be mitigated - but never
         | fully.
        
         | webmaven wrote:
         | _> Here 's a simple question that should be answerable in any
         | approach to org design. What's the optimal span of control for
         | management at each level in the organizational hierarchy? If
         | you can't answer this question, you can't "design" an
         | organization._
         | 
         | This seems so wrong to me. It is the equivalent of stating that
         | unless you can specify the values of all the hyperparameters up
         | front, you can't claim to 'design' a neural network
         | architecture.
         | 
         | All you really need to iterate on (this aspect of) the design
         | of an organization is a way to tell when the span of control is
         | too large and when it is too small.
        
         | q_andrew wrote:
         | I think this might be roughly what you're looking for:
         | https://codahale.com/work-is-work/
         | 
         | But this author is concerned more with 'productivity' rather
         | than longevity or interpersonal relationships.
        
         | dasil003 wrote:
         | IMHO this is wishful thinking. There are thousands and
         | thousands of questions you could pose in this way, each with a
         | range of answers depending on many details specific to the job
         | to be done. Even just designing a single experiment that is not
         | subject to biases of artificial metrics or incumbent market
         | momentum is incredibly difficult.
         | 
         | For instance your span of control question depends on how much
         | individual bandwidth is needed between the levels, which in
         | turn depends on the nature of the work and how it interacts
         | with partner functions and whether it can be routinized or
         | whether there is an aspect of creative problem solving.
         | 
         | It's a pleasant fantasy to imagine we could get definitive
         | answers using science but it presumes there is a universal
         | maximum when in fact there are many local maxima depending on
         | goals and the individual strengths and weaknesses you're
         | actually dealing with. And even then org structure is a pretty
         | blunt instrument which is always a huge tradeoff. All orgs rely
         | on extra-organizational effort to address critical problems,
         | whether it be through formal working groups or just individual
         | hustle and resourcefulness.
        
       | mirchiseth wrote:
       | This 2016 longish post on Functional vs Unit Orgs by Steven
       | Sinofsky is pretty good on different types of organizations. He
       | shares examples from Apple, Google and his days at Microsoft
       | being a senior leader. Even mentions another HN thread
       | https://medium.learningbyshipping.com/functional-versus-unit...
        
       | warpech wrote:
       | That's a very intresting topic for a growing startup. I tried to
       | find books about org design for startups but couldn't find any.
       | My conclusion was that it's because "it depends" is only
       | reasonable advice. But maybe there are some books that you
       | recommend?
        
         | joekinley wrote:
         | I can strongly recommend The E-Myth Revisited by Michael E.
         | Gerber. I read it years ago, and it helped me plenty to
         | understand basic organizational setup
        
         | andrewingram wrote:
         | Alongside the other suggestions, "Org Design for Design Orgs"
         | is a book that got me interested in the topic. Whilst it's
         | focused on how to structure and scale design teams, a lot of it
         | is transferable to other disciplines.
        
         | michael-ax wrote:
         | ask your suppliers and customers?
        
         | wmorein wrote:
         | Not a book but an article based on some experience. This reads
         | a bit more definitive than I actually feel about the subject
         | but I do tend to think that this design is actually best for
         | software/services startups.
         | 
         | https://riverin.substack.com/p/the-canonical-startup-org-str...
         | 
         | There are a couple links to other articles and book on the
         | subject in there too.
        
         | jannyfer wrote:
         | I haven't read the full book, but I found "Situational
         | Leadership" a very helpful concept that would have taken me
         | years to learn if I went through trial & error.
        
         | jmpz wrote:
         | I found Team Topologies to be a good resource on this.
         | https://teamtopologies.com/book
        
           | peterbell_nyc wrote:
           | +1 for Team Topologies!
        
       | nzmsv wrote:
       | I was nodding along and then had to stop and think. Are Amazon
       | and Netflix actually good organizational examples to emulate?
        
       | allenu wrote:
       | "When running the Vietnam office, we had many other business-
       | related problems to deal with; building consensus wasn't
       | something that I always had the time to do. So the way I ran
       | certain org changes was to:           1. Get a sense for team
       | receptivity for that org change, balanced against the necessity
       | of the org change. If I sensed that the team would be resistant
       | to the change, I would:          2. Figure out how much I had
       | left in the 'credibility/trust' bank, and if I wanted to burn
       | that capital.          3. If possible, find a smaller, more
       | reversible version of the org change to introduce first.
       | 4. Use disasters to my full advantage (people are usually more
       | receptive to trying new ways of doing things in the wake of
       | something painful).          5. Strategically allow certain
       | things to blow up so that I could exploit the pain to introduce
       | org change, as per 4) above.          6. Or build consensus;
       | consensus was always the best, if most time consuming, option."
       | 
       | This is useful, and incredibly candid, information about what
       | actions are taken to shape organizations, especially point 5.
       | It's great to see it written out like this.
        
         | hef19898 wrote:
         | Confirms my experience so far. it does raise the question so
         | what alternatives managers (I'll not go as far as calling them
         | leaders) or organizations with no capital in the trust are left
         | with. Seeing at it from that perspective shades a different
         | light on some of the re-orgs I went through, especially those
         | everybody wondered why disaster X was avoided despite being
         | visible from miles away.
        
         | [deleted]
        
       | benjohnson1707 wrote:
       | You might want to look into the works of Elliot Jacques, who came
       | up with apparently rigorous concepts about hierarchy and
       | management since the 70s. Wrote a bunch of books. Interesting
       | stuff, I find.
        
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       (page generated 2021-10-06 23:00 UTC)