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Don't Prejudge Organizational Structure

Posted by: Rod Kurtz on November 9, 2005

Saying that a job needs to be done by a multi-national corporation or an independent entrepreneur is prejudging a solution. The first step is to find something that works, once that’s established you can begin to figure out the best organizational design to deliver it. A really great business plan must start from the understanding that organizational form and size are design variables, like anything else.

So when you sit down to brainstorm, devote some brainstorming time to the product and some to the organizational structure. If you’ve prejudged it, then you’ve just ruled out a ton of interesting solutions.

James Patell
Herbert Hoover Professor of Public and Private Management
Graduate School of Business
Stanford University
Stanford, Calif.

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