Unique Value‐Adding Layers

This chapter introduces the concept of unique value‐adding layers as a way to simplify the vertical organization and ensure that each layer has a distinctive role. Focusing on the unique contribution of each layer also enables simple and clear docking stations, points where the connections are made horizontally for the right conversations across organizational boundaries. Span breakers are a necessary layer of management in large companies. Global functions can provide both strong enterprise oversight and guidance along with the specialized expertise that allows business people in the market to make better decisions. Once the anchor operating unit layer is identified, it is much easier to design corporate and business‐unit functions. Overlayered functional infrastructure slows the organization. The debate between centralized and decentralized organization is unproductive. To achieve agility and leverage, both must be embraced with center‐led structures, roles, and processes to create an integrated, coordinated way of getting work done.