Economics of Design
Marissa Karasz led a discussion to explore the intersection of economic strategy and organization design, focusing on the role of the operating model in driving financial sustainability and growth.
By incorporating principles of risk and resource management, we discussed how to create a framework for assessing both productivity and profitability trade-offs when evaluating proposed operating model changes. Rather than solely focusing on immediate cost-cutting measures, we will delve into the process (and challenges) of defining the long-term profitability outcomes of various design choices, such as integrating cross-functional teams or deciding between centralization and decentralization. Applying an economic lens empowers us to not only design, but engineer organizations to align structure with strategy while supporting financial sustainability.