Purpose & Narrative
Enable a midsize company to evolve from ad-hoc structures to a scalable operating model with clear decision rights, transparent governance, and empowered teams, laying a durable foundation for future digital and AI readiness without over-engineering.
Engagement Objectives
- Map current structure, decision rights, governance forums, and bottlenecks.
- Identify gaps: role duplication, unclear spans/layers, misaligned forums, cultural frictions.
- Design a right-fit future structure (functional/divisional/matrix/hybrid) with guardrails.
- Stand up governance (decision forums, RACIs, operating calendar) that increases speed.
- Pilot the model in a selected unit; refine and institutionalize organization-wide.
Point of View: Why Midsize Organizations Need This
Midsize companies live in a tough middle ground: too big for startup informality, too small to afford the heavy processes of large enterprises. They often grow faster than their structures, which leads to bottlenecks, duplication, and cultural friction. Without a clear operating model, growth can stall right when opportunity is greatest.
- Roles overlap and reporting lines blur.
- Decisions stall because no one is sure who owns them.
- Too many meetings, but too few real decisions.
- Shadow structures emerge outside the org chart.
- Leaders spend more time firefighting than planning.
- Right-sized governance, not bureaucracy, not chaos.
- A structure that scales without adding endless layers.
- Clear decision rights and forums that actually work.
- Playbooks managers can use without external help every time.
- A culture prepared for digital and AI adoption.
Our view is simple: midsize companies that redesign deliberately at this stage unlock the speed of a startup with the stability of an enterprise. Those that delay often spend years unravelling misaligned structures and lose ground to faster-moving competitors. This framework exists to make sure the middle stage is not a trap, but a launchpad.
Stratenity POV on Organizational Design
Context: They’ve outgrown startup informality but lack enterprise frameworks; growth brings duplication and decision bottlenecks.
Stratenity POV: Redesign must be intentional now, or velocity stalls just when scale demands increase.
Context: Functional/divisional/matrix models are proven yet rigid when change is constant.
Stratenity POV: Favor a federated hybrid: central backbone (standards, governance, platforms) + distributed accountability in BUs.
Context: Over-engineering breeds bureaucracy; under-structuring breeds chaos.
Stratenity POV: Aim for clear accountability at the top, empowered edge teams, and lightweight governance.
Context: Org charts alone don’t drive performance; decision rights and culture do.
Stratenity POV: Prioritize decision forums, transparent RACIs, and cultural reinforcement alongside the org chart.
Context: Roles, governance, and skills will evolve as digital/AI capabilities grow.
Stratenity POV: Bake in AI literacy, flexible roles, data-driven governance, and change capacity from the start.
8-Week Engagement Sprint (Phases & Outputs)
| Weeks | Focus | Key Activities | Primary Outputs |
|---|---|---|---|
| 1–2 Discovery & Current State | Map structure, decisions, forums, pain points. |
• Leadership kickoff • Stakeholder interviews • Decision heatmap • Data request: org charts, JDs, governance docs, survey data • Span/layer analysis; shadow structures; culture pulse |
Current org map; Pain point report; Span of control dashboard. |
| 3–4 Design & Validation | Draft future design options + governance principles. |
• Model options workshop (functional/divisional/matrix/hybrid) • Role mapping; decision rights & RACI; operating rhythm design • Change risks & cultural fit assessment |
2–3 design options; Governance principles; Future org blueprint (v1). |
| 5–6 Pilot & Adjust | Test model in one BU/function; refine based on outcomes. |
• Pilot org chart & RACI • Manager enablement • Operating calendar • Feedback survey & pulse checks • Metrics baseline (speed/clarity) |
Pilot report; Adjusted blueprint; Playbooks (roles, forums, rhythms). |
| 7–8 Scale & Institutionalize | Finalize design and embed governance org-wide. |
• Exec co-design session • Finalize blueprint & RACIs • Establish councils/forums • 6–12 month rollout plan |
Final org blueprint; Governance playbook; Implementation roadmap. |
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Workshops (Structured Touchpoints)
- Confirm scope, objectives, decision rights to assess, risks, cadence.
- Output: Charter, RAID, stakeholder map.
- Surface bottlenecks; map RACI gaps across top 10 decisions.
- Output: Decision heatmap, priority list.
- Review Functional vs Divisional vs Matrix vs Hybrid with pros/cons.
- Output: 2–3 options with guardrails and adoption implications.
- Define forums, cadences, OKRs, and handoffs for pilot unit.
- Output: Pilot org chart, RACI, calendar.
- Training, comms, adoption metrics, and risk mitigations.
- Output: Rollout plan (6–12 months), enablement playbooks.
Interviews & Sample Questions
- CEO / COO / CHRO / CFO
- Function Heads (Sales, CX, Ops, Finance, HR, IT)
- People Managers (span outliers)
- Program/Project Leads, PMO
- Influencers/Informal Leaders (“shadow org”)
- Which decisions stall most often? Who should own them?
- Where do roles overlap or handoffs fail today?
- Which forums produce decisions vs. status only?
- Ideal span of control for your area? Where’s it broken?
- Top 3 capabilities missing to scale in 12 months?
- What would make the pilot obviously successful in 6–8 weeks?
Data Request (Discovery Inputs)
| Artifact | Examples | Owner | Format | Notes |
|---|---|---|---|---|
| Org Structure | Current org charts, role descriptions, headcount by function | HR / People Ops | PPT/PDF/XLSX | Include spans & layers; open reqs; contractors |
| Governance & Forums | Meeting calendars, charters, decision logs, OKR trees | PMO / Exec Office | DOC/PDF | Mark which forums make decisions vs. status |
| Performance & Workflows | Process maps, SLAs, cycle times, rework rates | Ops / Process Owners | PDF/VSDX/XLSX | Target top 5 cross-functional flows |
| People Metrics | Engagement/clarity survey, attrition, manager loads | HR Analytics | XLSX/CSV | Break out by org level & team |
| Change/Comms | Recent change plans, comms cadence, enablement materials | HR / Comms | PDF/DOC | Identify prior reorg lessons learned |
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- Scope first: focus on 1–2 BUs for pilot depth; expand later.
- Privacy: exclude PII/salary specifics unless explicitly needed.
- Traceability: note system of record (HRIS/PMO) for each artifact.
Governance Model (Now → Next → Future)
Ad-hoc decisions; unclear spans; limited forums.
Moves: Define decision forums, create enterprise RACI, publish operating calendar.
Documented roles; standing councils; metrics dashboards.
Moves: Forum charters, cross-functional OKRs, decision logs.
Governance integrated with performance; periodic design retros; AI-ready councils.
Moves: Quarterly reviews; simplify layers; talent & change flywheel.
Recommended Operating Model — Federated Hybrid (Backbone + BUs)
A pragmatic structure for midsize companies (200–2,000 employees): a small, strong enterprise backbone and empowered Business Units (BUs) with clear decision rights, shared platforms, and lightweight governance.
- Exec Team (CEO/COO/CFO/CHRO/CPO/CRO)
- PMO/Portfolio (stage-gates, value tracking)
- Platforms (Data/AI, DevEx, Security, Finance Ops)
- Policies & Guardrails (RACIs, SLAs, risk)
- BU A/B/C (market, product line, or region)
- BU Leadership Trio (GM + Product + Ops)
- Cross-functional Pods (Eng/Design/GTM)
- Own local OKRs, backlog, revenue/gross margin
- People/HR, Finance, Legal, IT
- RevOps, Marketing Ops, Customer Ops
- Talent & Learning (manager enablement)
- Change & Comms (toolkits, campaigns)
| Layer | Example Entities | Primary Accountability | Key Decisions (A) | Guardrails |
|---|---|---|---|---|
| L0 Enterprise | Exec Team, Portfolio Council | Strategy, capital allocation, risk | Annual plan; cross-BU priorities; policy | ≤ 5 CEO-to-IC layers; SLA clock on forums |
| L1 Platforms | Data/AI, DevEx, Sec, Finance Ops | Shared capabilities & standards | Platform roadmap; standards; access models | Platform first; reuse before build |
| L2 BUs | BU A/B/C | P&L / outcomes; customer value | BU roadmap; pricing within guardrails | Spans 7–10; publish BU RACIs |
| L3 Pods/Squads | Cross-functional teams | Feature/initiative delivery | Sprint scope; release timing (local) | Definition of done; incident SLAs |
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| Domain | Centralized (Backbone) | Decentralized (BU) | Shared/Joint |
|---|---|---|---|
| Strategy & Portfolio | Enterprise OKRs, capital mix, stage-gates | BU OKRs, local bets | Quarterly portfolio review (SteerCo) |
| Product & Tech | Platform standards, security, data models | BU product roadmap within standards | Architecture Council (exceptions) |
| Revenue & Pricing | Floor pricing, discount policy | Deal structures within guardrails | Deal Desk for exceptions & >X% discounts |
| People & Talent | Job families, comp bands, manager program | Team composition, performance actions | Talent Council on critical roles |
- Squad standups; incident & risk triage
- BU ops review (throughput, blockers)
- BU roadmap sync (value, capacity)
- Change/Comms drop with FAQs & scripts
- Portfolio Council (stage-gates, re-prioritization)
- Architecture & Data/AI councils (standards, reuse)
- Org design retro & forum pruning
- GM, BU → COO (P&L) with dotted line to CFO for margin
- Head of Platform → CTO; embedded platform leads in BUs (dotted)
- RevOps → CRO; BU Sales Ops dotted to RevOps
- Decision SLAs enforced; escalation path defined
- Reuse shared platforms before bespoke builds
- ≤ 5 enterprise layers; exceptions documented
Forum charters, RACIs, platform standards, BU OKR trees, release calendar.
Backlog intake → sizing → stage-gate → delivery → value tracking.
SLA hit rate, cycle time, reuse %, clarity score, gross margin by BU.
Risks & Mitigation
| Risk | Why it Happens | Mitigation |
|---|---|---|
| Over-engineering (bureaucracy) | Layers/committees outpace value creation. | Minimum viable governance; pilot first; prune forums quarterly. |
| Under-structuring (chaos) | Unclear roles/decisions; shadow orgs proliferate. | Publish RACIs; clarify spans; standardize operating calendar. |
| Manager resistance | Loss of span of control; unclear incentives. | Early engagement; role redesign; tie incentives to clarity & outcomes. |
| Cultural misfit | Chosen model doesn’t fit company DNA. | Co-create with leaders; phased rollout; feedback loops; adapt options. |
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Deliverables Timeline
| Week | Deliverables |
|---|---|
| 1–2 | Current State Org Map; Span of Control Dashboard; Pain Point Report |
| 3–4 | Design Options (2–3); Governance Principles; Future Org Blueprint (v1) |
| 5–6 | Pilot Org Chart & RACI; Operating Rhythm Calendar; Feedback Report |
| 7–8 | Final Org Blueprint; Governance Playbook; 6–12 Month Implementation Roadmap |
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Success Metrics
Leadership alignment ≥ 90% (survey).
Span of control optimized (7–10 avg); reduced layers.
Decision lead time ↓; meeting load ↓; forum charters used.
Employee clarity scores ↑ 20%; forums run per cadence.
RACI & Engagement Cadence
| Workstream | R | A | C | I |
|---|---|---|---|---|
| Org Design & Blueprint | Design Lead | CEO/COO | CHRO, BU Heads | Board |
| Governance & Forums | PMO Lead | COO | Function Heads | All Staff |
| Pilot & Change | Pilot Owner | Exec Sponsor | HR, Comms, Finance | PMO |
| Metrics & Reporting | Ops Analytics | COO/CFO | HR, PMO | Leadership Team |
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Squad standups; risk & delivery sync; unblockers.
Design working session; pilot steering; data refresh.
Portfolio review; value/risk dashboard; stage-gates.
Decision Rights Catalog & SLAs (Top 15 Decisions)
Define the high-impact decisions that drive speed and accountability. Each decision has an accountable owner, forum, and time-to-decision target.
| Decision | R | A | Consulted | Informed | Forum | SLA | Evidence/KPI |
|---|---|---|---|---|---|---|---|
| Quarterly product roadmap priorities | Head of Product | CEO/COO | Sales, CX, Eng | All Teams | Portfolio Council | 10 business days | Roadmap adoption; NPS impact |
| Hiring approvals for critical roles | CHRO | CEO | CFO, BU Head | Recruiting | Talent Council | 5 business days | Time-to-hire; attrition trend |
| Discounts > X% on strategic deals | VP Sales | CRO | Finance, Legal | RevOps | Deal Desk | 48 hours | Win rate; gross margin |
Each decision owner maintains a 1-pager: inputs, options, criteria, template, and escalation path.
Charters specify quorum, agenda, artifacts due, and SLA clock start/stop.
Retire low-value decisions and merge overlapping forums every quarter.
Role Architecture & Talent Moves
Translate the target structure into job families, critical roles, guardrails, and a concrete 90-day talent plan.
- General Management & BU Leadership
- Product, Engineering, Design
- Go-to-Market (Sales, Marketing, CX)
- Operations & PMO
- Enablers (HR, Finance, Legal, IT/Data)
- Spans: 7–10 direct reports (manage exceptions explicitly).
- Layers: ≤ 5 from CEO to IC for speed.
- Role clarity: outcomes > tasks; avoid title inflation.
- Critical role backfills/hire list with owners & dates.
- Reassignments to remove overlaps and close gaps.
- Upskilling plan for managers (coaching & governance).
| Job Family | Critical Role | Scope (Outcomes) | Span/Layers Guardrail | Action | Owner | Due |
|---|---|---|---|---|---|---|
| Product | Director, Platform | Platform roadmap; cross-BU reuse | ≤ 8 span; ≤ 4 layers | Hire | CHRO | Wk 6 |
| Ops & PMO | Portfolio PM | Stage-gates; risk & value tracking | ≤ 10 span; ≤ 5 layers | Reassign | COO | Wk 5 |
| GTM | Head of RevOps | Forecast integrity; pipeline hygiene | ≤ 7 span; ≤ 4 layers | Upskill | CRO | Wk 8 |
Change & Communications Plan
Drive adoption with clear messages, artifacts, and a predictable cadence by audience.
| Audience | Message (What/Why/Impact) | Artifact | Channel | Cadence | Owner | Start |
|---|---|---|---|---|---|---|
| Executives | Target org design, guardrails, and decision SLAs | Exec deck + 1-pager | SteerCo | Bi-weekly | PMO Lead | Wk 2 |
| People Managers | Role changes, forums, operating calendar | Manager toolkit (FAQ, scripts) | Manager forum | Weekly (Wk 3–8) | CHRO | Wk 3 |
| All Staff | What’s changing and how it helps speed & clarity | All-hands slides, intranet post | Town Hall + Email | Monthly | Comms | Wk 4 |
% forums chartered, decision SLA hit rate, manager enablement completion, clarity survey uplift.
Monthly pulse (3 Qs), anonymous feedback channel, quarterly retros to prune forums.
Counter rumors quickly; publish “What’s Not Changing”; name change champions in each BU.
When to Seek Consulting — and What to Expect
Consultants add the most value when the organization needs speed, external objectivity, or specialized methods that don’t exist internally. Below are triggers and clear asks for their role in this 8-week journey.
- Leadership alignment is stalling — no consensus on structure or priorities.
- Growth is outpacing current governance — decisions slow, duplication rising.
- Previous reorgs failed — “shadow orgs” persist, morale/clarity dropping.
- Digital/AI readiness unclear — lacking data, roles, or frameworks.
- Need an independent voice for board/executive discussions.
- Run current-state diagnostics (interviews, span/layer analysis, decision heatmaps).
- Design and validate fit-for-purpose structures with options and guardrails.
- Facilitate executive workshops to align on governance and decision rights.
- Stand up pilot models, measure adoption, and refine playbooks.
- Provide change & communication toolkits to ensure adoption sticks.
Neutral facilitator to surface tensions, unblock debates, and recommend guardrails without legacy bias.
Pre-built frameworks (RACI templates, governance playbooks, decision SLAs) to compress weeks of work into days.
Hands-on support to run interviews, crunch org data, and manage the pilot when leadership bandwidth is limited.
Clarity: one agreed design, decision rights catalog, and pilot plan in 8 weeks.
Durability: scalable operating model with embedded governance, ready for digital and AI adoption.
Stratenity AI Frameworks — Powering the Consulting Journey
Stratenity brings a next-generation stack of AI-enabled consulting frameworks. Each one combines structured methods with intelligent automation, making the 8-week organizational design sprint faster, smarter, and more scalable. Below is how they align to the engagement steps.
| Engagement Section | Stratenity Framework | How It Helps |
|---|---|---|
| Purpose & Objectives | Clarity Engine | Transforms strategic goals into a unified alignment narrative using AI-generated storylines and options. |
| POV & Approach | Design Intelligence Matrix | AI models simulate multiple org structures (functional, hybrid, federated) and highlight trade-offs instantly. |
| Workshops & Interviews | Decision Heatmap AI | Maps decision bottlenecks in real-time through NLP-powered synthesis of interviews and workshop notes. |
| Data Request | OrgSense Diagnostics | Automates span/layer analysis, role mapping, and governance dashboards from raw HR and workflow data. |
| Governance Model | Adaptive Governance Grid | Builds AI-ready RACIs, forum charters, and operating cadences with dynamic adjustment recommendations. |
| Risks & Mitigation | Culture & Risk Sentinel | Detects cultural friction, change fatigue, and duplication risks with AI-based pattern recognition. |
| Deliverables Timeline | Velocity Sprint Model | Optimizes the 8-week engagement roadmap into agile sprints with predictive milestone tracking. |
| Metrics & RACI | Clarity Index Dashboard | Continuously measures alignment, decision speed, and adoption through AI-driven feedback loops. |
| When to Seek Consulting | Advisor Value Compass | Signals the right triggers for external expertise and defines the high-value roles consultants should play. |
| Operating Model | Federated Hybrid OS | Designs a scalable operating system: enterprise backbone + empowered BUs + shared AI-enabled services. |
AI-ready frameworks cut effort by 30–40% and compress decision cycles into days, not weeks.
Every phase runs on structured, AI-driven playbooks that ensure repeatable quality across engagements.
Frameworks evolve with the business — ready for digital scale, global expansion, and AI adoption.
Conclusion: The Organizational Design Framework becomes actionable when powered by Stratenity’s AI-driven consulting frameworks. They combine human expertise with intelligent systems, ensuring clarity today and adaptability for the future.
In Summary
This 8-week organizational design plan helps a midsize company move from ad-hoc ways of working to a clear, scalable model. The steps are simple: first understand how decisions and roles work today, then design a better structure, test it in one part of the business, and finally scale it across the company.
- A clear map of how the organization currently works.
- Options for a future structure with pros and cons spelled out.
- A pilot in one team or unit to prove it works.
- A practical rollout plan and playbooks for managers.
- Decisions get made faster with less confusion.
- People know who owns what and how to escalate.
- Leadership can focus on strategy instead of firefighting.
- The company is ready to adopt digital and AI tools without chaos.
In short: this framework creates clarity, speeds up execution, and prepares the business for its next stage of growth. It’s not theory—it’s a practical plan you can run, measure, and improve.