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Use when designing or redesigning organizational structures — covers configurations, decision rights, Conway's Law, and team topologies.
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Use when designing or applying progressive discipline — covers the escalating sequence, documentation, gross misconduct exceptions, and consistency.
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Use when designing career frameworks, level rubrics, IC and management track parity, and promotion processes.
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| name | org-design-principles |
| description | Use when designing or redesigning organizational structures — covers configurations, decision rights, Conway's Law, and team topologies. |
Five organizational configurations (Mintzberg, Structure in Fives, 1983):
Most tech companies are some hybrid. The config evolves with stage.
| Structure | When It Works | Risk |
|---|---|---|
| Functional (eng, product, design) | Small to mid-scale; coordination via shared rituals | Hard to coordinate cross-function for customer outcome |
| Divisional (GMs per business unit) | Multiple distinct business lines | Duplication; weak functional craft |
| Matrix (dual reporting) | Truly cross-cutting work | Coordination cost; needs explicit operating norms |
Default for most growth-stage tech: functional with strong cross-functional rituals.
Four team types:
Four interaction modes:
| Manager type | Healthy span |
|---|---|
| First-line manager (manages ICs) | 6–12 |
| Manager of managers | 5–9 |
| Functional VPs | 5–8 |
| CEO directs | 7–10 (12+ is a sign) |
| Founder directs | Audit if > 9; founders often over-collect |
Wider spans require more autonomous teams; narrower spans mean more management overhead per IC.
From CEO to most junior employee:
| Headcount | Healthy layers |
|---|---|
| <100 | 3–5 |
| 100–500 | 4–6 |
| 500–2000 | 5–7 |
| 2000+ | 7–9 |
More layers = slower decisions, more political work, more "translation." When the founder adds an extra layer to manage trust issues, the layer rarely comes out.
Name the decisions, then assign authority:
Pick a framework (RACI, RAPID, DACI) and use it consistently.
Bias toward decentralization: senior leaders typically under-delegate. The test: "if this decision was wrong, would the consequences be reversible?" If yes, delegate.
Conway, 1968: "Organizations design systems that mirror their communication structures."
Practical implication: the products you ship reflect how the org is organized. Want a customer-coherent product? Organize around the customer journey, not around technical components.
Inverse Conway: design the org for the systems / customer experience you want.
Reorgs are expensive. Only do them when the cost of not is higher.
When you do:
org-designer agentspans-and-layers skillworkforce-planning skillchange-management skill