To break down rigid business units, Siemens' CEO is creating horizontal "fabrics" for data, technology, and sales. These thin but powerful layers act like a shared operating system to enforce standards and scale capabilities across the entire organization without a full functional re-org.
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To create an integrated product suite, Cisco dismantled divisional silos and restructured into a platform-based organization. An org chart directly dictates product architecture, so leaders must design their organization to produce the desired integrated outcome, not just individual products.
To accelerate AI adoption, Block intentionally dismantled its siloed General Manager (GM) structure, which had given autonomy to units like Cash App. They centralized into a functional organization to drive engineering excellence, unify policies, and create a strong foundation for a company-wide AI transformation.
Siemens navigates its immense scale through a three-dimensional matrix of businesses, regions, and industry verticals. Critically, the primary axis of power and P&L responsibility lies with the global business units, not geography, though this model adapts for certain divisions.
Rippling structures teams into business units led by GMs who oversee product, sales, and implementation. This is driven by the belief that a unified team focused on a specific customer problem (e.g., IT) delivers a superior end-to-end experience compared to a traditional matrixed organization.
To transform the 320,000-person company, Siemens' leadership avoided a top-down restructuring mandate. Instead, they defined a clear "North Star" vision and then empowered employees to co-create the "tracks" (initiatives) to reach it, fostering broad buy-in and ownership.
Recognizing that employees in less glamorous but profitable divisions (like mechanical switches) can feel ignored, Siemens' CEO actively works to validate their contribution. He connects their work directly to customer value and the company's financial health, ensuring they don't feel lost in the AI hype.
Roland Bush simplifies the complex, 170-year-old Siemens by framing it not by its products, but by its core function: providing the underlying technology that enables other companies to operate and innovate in industries from automotive to healthcare.
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.
Shift from departments staffed with people to a single owner who directs AI agents, automations, and robotics to achieve outcomes. This structure maximizes leverage and efficiency, replacing the old model of "throwing bodies" at problems.
Organizing by function (e.g., all sales together) seems efficient but incentivizes teams to optimize their individual metrics, not the company's success. This sub-optimization prevents cross-functional learning and leads to blame games, ultimately harming the entire customer value stream and creating a non-learning organization.
