Three Organizational StructuresThe Formal Structure defines the organization's roles, rules, governance, and accountability systems, providing clarity and stability in its external relationships.
The Formal Structure reflects the official design of the organization—its roles, rules, governance, and accountability systems. It provides clarity, legitimacy, and stability by defining how authority and responsibility are distributed. This structure connects the enterprise to its legal, financial, and regulatory environment. It sets boundaries and expectations that other structures navigate within, offering continuity and reliability for the organization’s external relationships.
Typical questions
- How are decisions and accountabilities formally arranged?
- What mechanisms connect the organization to external governance or compliance systems?
- Where does the formal design enable or constrain flexibility?
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These structures are influenced by 