How should companies organize? Where should the lines be drawn? Bigger or smaller? The design of an organization is implicit in its strategy, so much so that it sometimes hard to tell where strategy leaves off and organization begins. Because strategy is dynamic, organizations must be flexible. Drawing the lines of organization is an ongoing struggle to say relevant, not a job done once and for all.
More than anything else, where the lines are drawn depends on what the organization is trying to accomplish, on how it is trying to do better by being different. A clear strategy thus becomes a kind of blueprint for an organization’s design, shaping the most basic decisions about its scope, its scale, and its structure.
What Management Is
Chapter 4, p. 96
It’s not the money you make; it’s the money you save.