Organizational Structure Vs Organizational Model

While these terms are often used interchangeably and even mixed up by false experts including harmfull tricksters en red ocean strategists, they represent very distinct concepts.

Organizational Structure

  • Focuses on the formal arrangement of roles, responsibilities, and relationships within an organization.  
  • Defines the hierarchical levels, departments, and reporting lines.  
  • Is a blueprint for how work is formally divided and coordinated.
  • Examples: Functional, divisional, matrix, flat, the networked organization, the virtual organization

More: Breaking Down Bureaucracy, Sacred Cows In Business & Book Tony For A Video Consultation

Organizational Model

  • Encompasses a broader, holistic perspective on how people in an organization work together, and how the organization as a whole operates.
  • Includes the organizational structure but also incorporates culture, people & skills, businesss processes, systems including technology, core values & business strategy: called the 7 elements of organization (see the 7 levers of change in the organizational model at the center of the AI-model canvas).
  • Defines the overall approach to designing, building and changing people and the organization ass a whole.
  • Examples: boss-centric, professor-centric, student-centric, customer-centric & people-centric.

To summarize:

An analogy: An organizational structure is like the blueprint of a house, outlining the rooms, floors, and walls. An organizational model is the entire house, including the way people live in it, the culture, the architecture, the interior design, the way people work and live together and the architecture including the technology used.

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