Block restructured from divisional GMs to a functional organization (Engineering, Product, Design) across all brands. This creates a single shared roadmap and forces alignment, enabling cross-unit collaboration that was difficult when incentives were siloed in separate P&Ls.
Related Insights
Block's CTO reveals a counterintuitive lesson: reorganizing from a GM-based structure to a functional one (where all engineers report to one org) was the key to their AI transformation. This structural change had a greater productivity impact than any specific AI tool they implemented.
Square's public roadmap serves a dual purpose. While it informs customers, its primary internal function is to create accountability. Committing to features publicly forces the organization to deliver on its promises with speed and quality, preventing internal delays.
To ensure genuine collaboration across funds, Centerbridge structures compensation so a "substantial minority" of an individual's pay comes from other areas of the firm. This economic incentive forces a firm-wide perspective and makes being "part of one team" a financial reality, not just a cultural slogan.
To create a cohesive product across multiple teams, GitHub uses a framework that forces alignment upfront. By ensuring all teams first deeply understand the problem and collectively identify solutions, the final execution is naturally integrated, preventing a disjointed experience that mirrors the org structure.
To keep growth aligned with product, foster a shared culture where everyone loves the product and customer. This isn't about formal meetings, but a baseline agreement that makes collaboration inherent. When this culture exists, the product team actively seeks marketing's input, creating a unified engine.
To modernize her team, Ally's CMO designed a new structure based on core capabilities (Insights, Execution, Creative, Measurement) rather than traditional functional silos. This model, benchmarked against other high-performing organizations, creates clearer ownership and a more effective workflow.
In a multi-product company, horizontal teams naturally prioritize mature, high-impact businesses. Structuring teams vertically with P&L ownership for each product, even nascent ones, ensures dedicated focus and accountability, preventing smaller initiatives from being starved of resources.
Contrary to the popular bottoms-up startup ethos, a top-down approach is crucial for speed in a large organization. It prevents fragmentation that arises from hundreds of teams pursuing separate initiatives, aligning everyone towards unified missions for faster, more coherent progress.
To bridge cultural and departmental divides, the product team initiated a process of constantly sharing and, crucially, explaining granular user data. This moved conversations away from opinions and localized goals toward a shared, data-informed understanding of the core problems, making it easier to agree on solutions.
