For most companies, organization design is neither a science nor an art; it’s an oxymoron. Organizational structures rarely result from systematic, methodical planning. Rather, they evolve over time, in fits and starts, shaped more by politics than by policies. The haphazard nature of the resulting structures is a source of constant frustration to senior executives. Strategic initiatives stall or go astray because responsibilities are fragmented or unclear. Turf wars torpedo collaboration and knowledge sharing. Promising opportunities die for lack of managerial attention. Overly complex structures, such as matrix organizations, collapse because of lack of clarity about responsibilities.

A version of this article appeared in the March 2002 issue of Harvard Business Review.