The Unexpected Beauty of Organizational Charts

At first glance, organizational charts might seem like a dry subject. However, they hold the key to unlocking efficiency, focus, and success in your product organization.

A Common Trap: The One-Size-Fits-All Structure

Many startups and companies fall into the trap of adopting popular organizational structures without questioning their suitability.

A widely referenced paper from Spotify, written in 2012, introduced terms like "squads," "tribes," "chapters," and "guilds," becoming the default framework for many. But your company is not Spotify, and blindly following these models can lead to inefficiencies and lost focus.

Understanding Conway’s Law

Conway’s Law states that your product will reflect your organizational structure. If your team is divided into small, cross-functional squads, your product may end up feeling fragmented. This can result in slower progress, lack of focus, and an accumulation of technical and product debt.

Designing Your Org Chart with Purpose

To create an effective organizational chart, start with your product in mind. What is the main thing that differentiates your product? Focus on this key area and consider over-provisioning teams around it. This approach ensures that the most critical aspects of your product receive the attention they need to maintain high quality and agility.

Rethinking Team Sizes and Structures

The conventional wisdom suggests that teams should be small, typically 5-8 people. This idea stems from older management practices and might not be suitable for today’s dynamic and technologically advanced environment. Instead, consider the largest scope a team can handle while still making reasonable trade-offs. Start with broad teams and narrow down as necessary, rather than pre-committing to narrow scopes.

Embrace Asymmetry

Symmetry in org charts might look appealing, but it often leads to spreading attention too thin. Asymmetrical org charts, though messy on paper, reflect the true needs of your product. Ensure that your org chart aligns with your product’s development and customer needs, even if it looks unconventional.

Practical Steps to Optimize Your Org Chart

1. Focus on Your Main Thing: Identify the most critical part of your product and allocate more resources to it. This ensures high quality and agility in the most important areas.
2. Avoid Over-Specialization: Start with broad teams and refine their scopes as necessary. This prevents over-specialization and allows for flexible, dynamic responses to emerging needs.
3. Set Clear Limits: Define clear limits and conditions for teams, and be prepared to disband them when their purpose is fulfilled. This prevents unnecessary bloat and maintains focus.
4. Utilize Contextual Numbers: Numbers like the ideal team size should be considered within the context of your specific needs and environment. Avoid blindly following outdated or irrelevant advice.
5. Encourage Effective Trade-Offs: Allow teams to make informed trade-offs on the ground. Providing adequate size and resources helps them deliver on quality promises while managing technical and product debt effectively.

Your organizational chart is more than just a visual representation of your team structure; it’s a strategic tool that can significantly impact your company’s success.

By focusing on your product’s unique needs, avoiding over-specialization, and embracing asymmetry, you can create an org chart that drives efficiency, focus, and innovation instead of looking symetric and good to management.