As an Organisational Designer, I strive to understand all aspects of my field. For me, organisational design fundamentally encompasses three elements: division of labor (how work is distributed across various parts of the organisation), decision-making (who makes which decisions), and coordination (how cohesion and alignment between different components are ensured). These are collectively referred to as the ‘design ABC.’
However, the effectiveness of any design largely depends on leaders who translate the described design into practice. Leaders who not only take responsibility for their own team or department but also act as the 'glue' between organisational units, make decisive decisions, and share collective responsibility for the whole. Moreover, a design is never complete; leaders are constantly engaged in redesigning their organisation. In this article, I explore the role of leadership in organisational design, inspired by the insights of management scholar Henry Mintzberg, a renowned authority in the field of management studies.
Henry Mintzberg, whose name has become synonymous with groundbreaking ideas on management, has spent decades studying how organisations function. His latest work, “Understanding Organisations, Finally,” offers not only a refreshing perspective on management challenges but also encourages reflection on the essence of leadership and community-building within organisations.
Recently, we at Berenschot had the privilege of welcoming this legend. During his visit, Mintzberg shared his insights on the differences between managers and leaders and emphasized the importance of “communityship.” For Mintzberg, an effective organisation is more than just a collection of human resources; it is a vibrant community where interaction and connection take center stage.
In his book, Mintzberg illustrates this concept with the example of two hotels. One hotel, new and standardized, lacks the warmth and soul of the other, which boasts a long-established sense of community. “You can just feel when an organisation is a community,” Mintzberg underscores. “You feel the energy, the spirit, the sense of belonging.”
Building such a community begins with management. Good managers are the architects of the community where employees thrive and collaborate. They lay the foundation for alignment and knowledge sharing (the ‘C’ in the design ABC). This involves not just constructing an organisation but also fostering a community that prioritizes diversity and collaboration.
At Berenschot, within our competency group Organisational Design, we have embraced this vision. We focus not only on improving other organisations but also on developing our own community. As the country lead for the EODF Community (European Organisation Design Forum), I regularly organize knowledge sessions at Berenschot on various organisational design themes. By discussing client cases and contemporary literature with peers, we continuously refine our design methodologies.
The concept of communityship is also evident in how Berenschot is organized. As a steward-owned company, we adhere to two key principles: self-governance by the stewards and reinvesting profits to support our mission. In a steward-owned model, financial ownership and managerial control are separated. This ensures the company remains true to its mission and core values, focusing on the well-being of all stakeholders rather than solely maximizing shareholder profit.
By placing governance in the hands of specific stewards within the organisation, a strong connection to the workplace is maintained. Mintzberg highlights that this connection is crucial for effective leadership. “How can you run a company without knowing what’s happening on the shop floor?” he asks rhetorically. Effective leadership requires a deep understanding of what occurs at all levels of the organisation; true leaders know their organisation's dynamics from top to bottom.
Another key insight Mintzberg shared concerns the selection of managers. Many managers excel in the “kissing up, kicking down” principle: being pleasing to superiors while being harsh to subordinates. Often, they are chosen based on their ability to manipulate the hierarchy to their advantage, fostering a culture of conformity rather than innovation. Mintzberg advocates for listening closely to the people they lead during the selection process, as they have the best understanding of the manager’s leadership style and effectiveness.
In a world where change is the only constant, Henry Mintzberg's insights are more than theoretical concepts—they are a guide for building resilient, people-centered organisations. Are you facing an organisational change and want to learn more about leadership, decision-making, or selecting the right organisational structure? Feel free to reach out to one of our consultants for more information.