Frameworks

Core organization design frameworks.

We know the joke: consultants use way too many frameworks. But these are our favorites. Rooted in Jay Galbraith’s methodology and refined over years of practice, these are the essential models we rely on to guide our clients.

The Star ModelUsed to diagnose and design a dynamic, holistic system of human behavior in groups.ExploreEnterprise Operating ModelThe sequence of decisions to set the organization vision.ExploreOrganization DecisionsThree types of decisions, each requiring different tools and governance.ExploreOperating FrameworkA critical decision is specifying to what degree the portfolio should be integrated.ViewingJay’s Ladder of Lateral ConnectionsA continuum of integration options to connect structures.Explore
View our organization design glossary
Operating Framework

Level of business portfolio relatedness.

Configuration 1 of 4

Fully integrated single business

Strategy & customer value

Single strategy guides all P&L units with minor variations.

Governance
  • Strategy and execution oversight comes from organizational center.
  • All process and practices are common.
  • Single culture.
Role of the center
  • Drives functional policy, staffing and standards to build a consistent global function presence across the company.
  • Functional costs are managed centrally.
Company examples
AppleCiscoCoca-Cola
Configuration 2 of 4

Closely related portfolio

Strategy & customer value

Complementary business portfolio and core strategies with synergies.

Governance
  • Business units drive strategy and execution, often with shared resources in a matrix.
  • Benefits of scale sought in core technologies, product and commercial platforms, and back-end operations.
  • Shared values and some cultural elements.
Role of the center
  • Orchestrates and owns a common strategic agenda and most processes.
  • Collaborates closely with divisions to support execution.
  • Manages company-wide talent process and shared services.
  • Influences functional cost structure.
Company examples
DanaherDeere & Co.MedtronicMicrosoftP&GPepsiCo
Configuration 3 of 4

Loosely related portfolio

Strategy & customer value

Diverse, relatively autonomous businesses set strategies, with limited synergies across units.

Governance
  • Business units drive nearly full execution of results with limited matrix.
  • Cross-business unit scale is selective (e.g., government relations, technology transfer, back-end shared services).
  • Some effort to harmonize culture.
Role of the center
  • Builds skills, tools, and talent practices necessary to strengthen a few functional capabilities.
  • Priorities are guided mostly in divisions.
  • May be a few selective shared services.
  • Costs managed primarily within the business units.
Company examples
HoneywellUnileverAlphabet
Configuration 4 of 4

Holding company or conglomerate

Strategy & customer value

Structure varies by operating company, enabling buying and selling of separate assets.

Governance
  • Focused on appointing leaders.
  • Business units return financials to parent.
  • No common processes.
  • Multiple cultures.
Role of the center
  • Limited company-wide policies and practices mostly focused on risk and fiduciary matters.
Company examples
Berkshire Hathaway3G CapitalTata
1. Fully integrated single business
2. Closely related portfolio
3. Loosely related portfolio
4. Holding company or conglomerate
Strategy & customer value

Single strategy guides all P&L units with minor variations.

Complementary business portfolio and core strategies with synergies.

Diverse, relatively autonomous businesses set strategies, with limited synergies across units.

Structure varies by operating company, enabling buying and selling of separate assets.

Governance
  • Strategy and execution oversight comes from organizational center.
  • All process and practices are common.
  • Single culture.
  • Business units drive strategy and execution, often with shared resources in a matrix.
  • Benefits of scale sought in core technologies, product and commercial platforms, and back-end operations.
  • Shared values and some cultural elements.
  • Business units drive nearly full execution of results with limited matrix.
  • Cross-business unit scale is selective (e.g., government relations, technology transfer, back-end shared services).
  • Some effort to harmonize culture.
  • Focused on appointing leaders.
  • Business units return financials to parent.
  • No common processes.
  • Multiple cultures.
Role of the center
  • Drives functional policy, staffing and standards to build a consistent global function presence across the company.
  • Functional costs are managed centrally.
  • Orchestrates and owns a common strategic agenda and most processes.
  • Collaborates closely with divisions to support execution.
  • Manages company-wide talent process and shared services.
  • Influences functional cost structure.
  • Builds skills, tools, and talent practices necessary to strengthen a few functional capabilities.
  • Priorities are guided mostly in divisions.
  • May be a few selective shared services.
  • Costs managed primarily within the business units.
  • Limited company-wide policies and practices mostly focused on risk and fiduciary matters.
Company examples
AppleCiscoCoca-Cola
DanaherDeere & Co.MedtronicMicrosoftP&GPepsiCo
HoneywellUnileverAlphabet
Berkshire Hathaway3G CapitalTata

The operating framework defines how integrated or separate your business units should be. Every organization must deliberately choose where to operate on this spectrum, from a fully integrated single business at one end to a holding company at the other. Alignment is critical, as disagreement here drives many leadership tensions, and the choice cascades into what the corporate center is for and which capabilities are shared versus embedded.

How we use it with clients

We use this framework as part of our assessment work. Each leader marks where they believe the company operates today and where they believe it should operate, and the gaps between those answers are usually the most revealing finding in the diagnostic. From there we make sure the CEO’s view of where the company should sit on the continuum is explicit and understood, so the whole leadership team is designing against the same intent.

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