Tag Archives: alignment

Dean Meyer’s “How Organizations Should Work” – an A+ Reference on Intentional Organizational Design

The organization that you design designs you back.

Similarly, the organization that you fail to intentionally design will also design you back. And you probably won’t like the pain it inflicts… whether that pain manifests as political battles, conflicts of interests, or just plain stonewalling or slow-walking. People tend to perform based on how well their goals and objectives are defined, how effectively their roles (and the relationships between their roles and other roles) are defined, and how rigorously the organization monitors and reinforces desired behaviors and outcomes.

Unfortunately, it’s rare to get all those pieces in place and functioning at the same time. But thanks to Dean Meyer’s new 2022 book, How Organizations Should Work, you’ll have a head start on lessons learned. Based on his multi-decade career in organizational design, he provides simple, tangible, and meaningful explanations that will help you learn how to intentionally design your organization.

I brought this book to Burning Man because I wanted to read it in a place where I could take my time, where I could allow my mind to expand and take in Dean’s lessons, where I could feel the inspiration all around me while figuring out how to bake more inspired organizational design into my own workplace. And I did start reading it there.

But this book is so packed with wisdom and insights that you’ll want to read it slowly. Plan adequate time for it. After getting through the first 80 pages or so at the event, I read one or two sections every weekend. It took me a full three months to get through cover to cover… and I’m someone who can read a whole book in one sitting. This one, though, will make you think, and you’ll need time to pause and reflect on each of the stories and narratives that Dean uses to make his points.

Here’s a small sample of the highlights (and there are more; you can find this book on Amazon for $37-40).

Book Summary (p. 465-494). The best way to develop a reading plan for this book is to start at the end. Dean provides a helpful synopsis of each chapter that you can use to figure out which sections are most relevant for your organization now. The book is structured so that you don’t have to read it from start to finish, but can pick the sections that are the highest priority for continuous improvement in your organization. Some sections (like Chapter 19, on managing workers in the field) may be less relevant to your needs than other sections (like Chapter 15, on aligning sales and marketing). I recommend starting with Chapters 1 through 6 (and if your time is limited, start with Chapters 5 & 6).

Chapter 5 – Market Organization & Chapter 6 – Empowerment (p. 33-57). These two chapters provide the best (and most concentrated) view of the main thesis of the book, which is that every organization should be structured as a market. Each functional area should have customers, and services they provide to those customers. Each functional area should be empowered to make decisions about how the business of that unit is conducted, and should also have the skills to do it (and to build trust within their business unit and between their business unit and others). Organizing according to a market allows people to specialize, makes it possible to monitor performance in a more modular way, and simplifies the cognitive complexity of an organization.

Appendix 4 – Culture: Examples of Behavioral Principles (p. 376-380). Dean notes that companies are great at defining their culture, but often not so great at explaining how people can embody that culture and monitor their behaviors to ensure that they are living it and reinforcing it. In this section, he provides specific examples of behaviors that can make goals like “maintain a high ethical standard” actionable. For example, you can say “we do not permit personal conflicts of interest”. You’ll have to test your processes against these behavioral expressions of culture, too: if you don’t permit personal conflicts of interest, you should identify areas where conflicts of interest might arise and anticipate ways to identify them, prevent them, or resolve them quickly.

There are so many things I like about this book, and it embodies so many principles of good organizational design in a light, conversational way. Although there are a lot of books I really like, I don’t typically gush over them… but this one meets my high standards. Coupled with Dean’s 2017 book, Principle-Based Organizational Structure (which has a less conversational and more academic style), these are the only two references I really need to remind me of the essentials for intentionally building healthy organizations that are aligned internally and externally.

Alignment is the best way to reduce friction between people, and accelerate real progress towards tangible goals.

Lack of Alignment is an Organizational Disease. Here are the Symptoms.

Streamlines on a field. Created using the pracma package in R.

Like a champion rowing team, your organization needs to make sure everyone is working together, engaged in synchronized work and active collaboration, and not working at cross-purposes.

But like risk management, working on alignment can seem like a luxury. No one really has time to slow down and make sure everyone’s moving in the same direction. And besides, alignment just happens naturally if each functional area knows what they’re supposed to be working on… right?

Neither of these statements are, of course, true. Synchronizing people and processes – and making sure they’re aware of the needs and desires of real customers instead of cardboard personas – takes dedicated effort and a commitment from senior leaders. There are other critical impacts too: lack of alignment negatively impacts not only project outcomes – but also professional relationships and the bottom line.

An Example of Diagnosing Misalignment

Although alignment is a many-to-many problem, and requires you to look at relationships between people in all your functional areas, a January 2018 survey from Altify examined one part of the organizational puzzle: alignment between sales and marketing. This is a big one, because sales teams use marketing materials to understand and sell the product or service your company offers. Their survey of 422 enterprise-level executives and sales leaders showed that:

  • 74% of marketers think they understood customer needs, but only 44% of sales people in their organizations agreed
  • 71% of marketers think sales and marketing are aligned, but only 59% of sales people in their organizations agreed

These differences may seem small, but they reveal a lack of alignment between sales and marketing. One group thinks they “get it” – while people in the other group are just shaking their heads.

Symptoms of Misalignment

…include things like:

  • Vague Feelings of Fear. Your organization has a strategic plan (knows WHAT it wants to do), but there is little to no coordination regarding HOW people across the organization will accomplish strategic objectives. You know what KPIs you’re supposed to deliver on, but you don’t know how exactly you’re supposed to work with anything in your power or control to “move the needle.”
  • Ivory Tower Syndrome. You’re in a meeting and get the visceral sense that things aren’t clear, or that different people have different expectations for a project or initiative. But you’re too nervous or uncertain to ask for clarification – or maybe you do ask, but you get an equally unclear answer. Naturally, you assume that everyone in the room is smarter than you (particularly the managers) so you shut up and hope that it makes sense later. The reality is that you may be picking up on a legitimate problem that’s going to be problematic for the organization later on.
  • Surprises. A department committed you to a task, but you weren’t part of that decision. Once you find out about it, the task just may not get done. Alternatively, you’ll have to adjust your workload and reset expectations with the stakeholders who will now be disappointed that you can’t meet their needs according to the original schedule. Or maybe work evenings and weekends to get the job done on time. Either way, it’s not pleasant for anyone.
  • Emergencies. How often are you called on to respond to something that’s absolutely needed by close of business today? How often are you expected to drop everything and take care of it? How often do you have to work nights and weekends to make sure you don’t fall behind?
  • Lead Balloons. In this scenario, key stakeholders are called into projects at the 11th hour, when they are unable to guide or influence the direction of an initiative. The initiative becomes a “dead man walking” that’s doomed to an untimely end, but since the organization has sunk time and effort into it, people will push ahead anyway.
  • Cut Off at the Pass. Have you ever been working on a project and find out – somewhere in the middle of doing it – that some other person or team has been working on the same thing? Or maybe they’ve been working on a different project, but it’s ultimately at cross purposes with yours. Whatever way this situation works out, your organization ends up with a pile of waste and potential rework.
  • Not Writing Things Down.You have to make sure everyone is literally on the same page, seeing the world in a similar enough way to know they are pursuing the same goals and objectives. If you don’t write things down, you may be at the mercy of cognitive biases later. How do you know that your goals and objectives are aligned with your overall company strategy? Can you review written minutes after key meetings? Are your organization’s strategic initiatives written and agreed to by decision makers? Do you implement project charters that all stakeholders have to sign off on before work can commence? What practices do you use to get everyone on the same page?

How do you fix it?

That’s the subject for more blog posts that will be coming this spring – as well as what causes misalignment in the first place (hint: it’s individual behaviors on an organizational scale). The good news is – misalignment can be fixed, and the degree of alignment can be measured and continuously improved. Sign up to follow this blog so you don’t miss the rest of the story.

What other symptoms of misalignment have you experienced?