Functional Region: Get The Inside Scoop From Industry Leaders

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Learn everything about the functional organizational structure, where employees are grouped by expertise, such as marketing or finance, improving specialization, efficiency, and clarity in roles. We call it a functional region because the region is designed based upon a functional, rather than political, purpose. Examples of central nodes around which a region exists include airports, hospitals, radio towers, and city centers.

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The best functional plans identify select initiatives that will drive an organisation's ambitions and commit the capacity (time, budget, talent and technology) necessary to execute successfully. These nine steps provide a guide by which functional leaders can ensure a rigorous approach to planning, however adaptive their organisations strategy. For example, when functional leaders design functions, they are usually more centralized (in pursuit of economies of scale and skill); Functional executives who aspire to the ceos chair should look for opportunities to show analytic leadership, deploy their own expertise, and broaden their leadership foundation.

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Our observations of 25 companies in a wide range of industries in europe, asia, and north america have led us to conclude that perspiration is as important as inspiration in addressing these challenges. Heres the story of how two companies launched new approaches successfully. Amid volatility, strategic planning must focus only on whats essential. Heres how functional leaders can streamline the process.

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