- like the Organigram of Post
- enduces collaboration and innovation between departments
- only one profit and loss statement
- cannot distinguish income between products
- great for Platform businesess
Multidivisional From
- from General Motors
- each car got a separate profit and loss statement
- creating incentives to work harder and achieve profits
- creating competition within the organization
- CFO will only allocate resources to projects/products
- squad → 10 ppl
- each squad can think of what to do
- tribe → 15 squads
- creates a “fail fast” culture
- high autonomy, flexibility, self-determination, self-organization