Who reports to whom shapes what gets done. Organizational structure is the formal arrangement of roles, responsibilities, and reporting relationships that constitutes the skeleton of an enterprise.

Common forms include functional, divisional, matrix, and network structures. Each optimizes for different priorities—expertise depth, product focus, geographic responsiveness, or flexibility. Structure determines spans of control, layers of hierarchy, and the paths information and decisions travel.

Structure should follow strategy, yet outdated structures often constrain it. Redesigns that ignore informal networks and cultural realities produce charts that no one follows. Periodic structural review keeps the formal organization aligned with how value is actually created.

• Formal arrangement of roles and reporting lines
• Includes functional, divisional, matrix, and other forms
• Shapes decision speed, expertise, and accountability
• Needs alignment with strategy and informal reality