open-collaboration

Open Collaboration

Open collaboration is a dynamic and inclusive approach to problem-solving, innovation, and productivity that leverages the collective intelligence of individuals, communities, and organizations. It promotes transparency, knowledge sharing, and cooperation across traditional boundaries, leading to creative solutions and driving progress.

Understanding Open Collaboration

The Essence of Open Collaboration

Open collaboration is a philosophy and methodology that encourages individuals and groups to work together openly, transparently, and inclusively. It transcends geographic, organizational, and disciplinary boundaries, fostering a sense of shared purpose and collective ownership of challenges and opportunities.

At its core, open collaboration is guided by several key principles:

  1. Transparency: Information, processes, and decision-making are open and accessible to all participants.
  2. Inclusivity: Collaboration is not limited to a select few; it welcomes diverse perspectives and contributions from anyone interested.
  3. Knowledge Sharing: Participants freely share their expertise, insights, and resources to collectively address issues or achieve common goals.
  4. Community Building: Open collaboration often leads to the formation of communities of interest or practice, where members collaborate on shared objectives.
  5. Co-Creation: Collaboration goes beyond discussion; it involves actively creating, building, and refining solutions or projects together.

Origins of Open Collaboration

The roots of open collaboration can be traced to various sources, including:

  • Open Source Software: The open-source software movement, exemplified by projects like Linux and the Free Software Foundation, demonstrated the power of collaborative development and distribution.
  • Crowdsourcing: Platforms like Wikipedia and InnoCentive showcased the ability of large groups of individuals to collectively generate knowledge and solve complex problems.
  • Open Innovation: The concept of open innovation, popularized by Henry Chesbrough, emphasized the importance of external ideas and collaboration in driving innovation.
  • Collaborative Platforms: Emergence of digital tools and platforms like GitHub, Wikipedia, and open-source collaboration tools that facilitate open collaboration.

Key Principles of Open Collaboration

1. Transparency:

  • Transparency ensures that information, decisions, and processes are visible and accessible to all participants, fostering trust and accountability.

2. Inclusivity:

  • Open collaboration embraces diversity and welcomes contributions from anyone interested, enabling a wide range of perspectives and expertise.

3. Knowledge Sharing:

  • Participants freely share their knowledge, insights, and resources, creating a collective pool of information that drives progress.

4. Community Building:

  • Collaboration often leads to the formation of communities where members work together to achieve common objectives and share a sense of belonging.

5. Co-Creation:

  • Collaboration extends beyond discussion; it involves actively creating, building, and refining solutions or projects together.

Implementation Strategies

Implementing open collaboration requires deliberate efforts and strategies:

1. Define Clear Objectives:

  • Clearly define the objectives, challenges, or projects that require open collaboration. Having a well-defined purpose helps attract participants.

2. Choose the Right Platform:

  • Select digital platforms or tools that facilitate collaboration and knowledge sharing. This could include collaboration software, wikis, or open-source development platforms.

3. Foster a Culture of Trust:

  • Building trust among participants is crucial. Encourage openness, honesty, and respect in interactions.

4. Provide Resources:

  • Ensure participants have access to the necessary resources, information, and support to contribute effectively.

5. Encourage Contribution:

  • Create an environment where contributions are valued and recognized. Celebrate achievements and milestones.

6. Manage and Facilitate:

  • Appoint facilitators or community managers who can guide discussions, resolve conflicts, and keep the collaboration on track.

7. Maintain Transparency:

  • Keep processes, decisions, and outcomes transparent to all participants, ensuring accountability.

Benefits of Open Collaboration

Open collaboration offers numerous benefits to individuals, communities, organizations, and society as a whole:

1. Innovation:

  • Open collaboration taps into diverse expertise, leading to innovative solutions and breakthroughs.

2. Knowledge Sharing:

  • Participants gain access to a wealth of knowledge and expertise from others, fostering continuous learning.

3. Problem Solving:

  • Complex problems can be tackled collectively, drawing on the strengths of different participants.

4. Community Building:

  • Communities formed through open collaboration provide support, networking, and a sense of belonging.

5. Efficiency:

  • Collaboration can streamline processes and reduce duplication of effort.

6. Inclusivity:

  • Open collaboration breaks down barriers and ensures that anyone with valuable contributions can participate.

7. Transparency:

  • Transparency builds trust and accountability, enhancing the quality of work.

Transformative Impact

Open collaboration has had a transformative impact on various aspects of our society and work:

1. Open Source Software:

  • Open source software projects like Linux and Apache have become fundamental to the technology industry.

2. Wikipedia:

  • Wikipedia is a prime example of the power of open collaboration in creating and sharing knowledge.

3. Crowdsourcing:

  • Organizations have successfully leveraged open collaboration to solve complex problems through crowdsourcing.

4. Research and Science:

  • Open collaboration has enabled researchers and scientists to share data, findings, and resources, accelerating discoveries.

5. Creative Industries:

  • Creative fields, from art to music, have seen new forms of collaboration and content creation through open platforms.

6. Startups and Innovation:

  • Many startups and entrepreneurial ventures embrace open collaboration to access resources and expertise beyond their immediate teams.

Broader Implications

Open collaboration has far-reaching implications:

1. Organizational Culture:

  • Organizations are reevaluating their cultures to embrace openness, transparency, and collaboration.

2. Education:

  • Education institutions are exploring collaborative learning models that mimic open collaboration principles.

3. Public Engagement:

  • Governments and institutions are adopting open collaboration principles to engage the public in decision-making processes.

4. Global Problem Solving:

  • Open collaboration is seen as a key approach to addressing global challenges, from climate change to public health.

Challenges and Considerations

Open collaboration is not without its challenges:

1. Coordination:

  • Managing large-scale collaboration efforts can be challenging, requiring effective coordination and leadership.

2. Quality Control:

  • Ensuring the quality and accuracy of contributions can be a concern, particularly in open content creation.

3. Intellectual Property:

  • Addressing issues related to intellectual property and ownership can be complex.

4. Inclusivity:

  • Efforts must be made to ensure that open collaboration is truly inclusive and accessible to all.

Conclusion

Open collaboration is reshaping the way we work, innovate, and solve problems. It has transcended boundaries and sparked transformative change in various fields, from technology to education to public engagement. As we continue to face complex challenges in an increasingly interconnected world, open collaboration offers a powerful approach to harnessing collective intelligence and driving progress. Its principles of transparency, inclusivity, and knowledge sharing are guiding us toward a more collaborative and innovative future, where the possibilities for positive change are boundless.

Key Highlights:

  • Definition of Open Collaboration: Open collaboration is a dynamic approach that leverages collective intelligence to solve problems and drive innovation. It emphasizes transparency, inclusivity, and knowledge sharing across boundaries.
  • Core Principles:
    • Transparency
    • Inclusivity
    • Knowledge Sharing
    • Community Building
    • Co-Creation
  • Origins and Influences: Open collaboration draws from various sources such as open-source software, crowdsourcing, open innovation, and collaborative platforms.
  • Implementation Strategies:
    • Define Clear Objectives
    • Choose the Right Platform
    • Foster a Culture of Trust
    • Provide Resources
    • Encourage Contribution
    • Manage and Facilitate
    • Maintain Transparency
  • Benefits:
    • Innovation
    • Knowledge Sharing
    • Problem Solving
    • Community Building
    • Efficiency
    • Inclusivity
    • Transparency
  • Transformative Impact:
    • Open collaboration has transformed industries like open-source software, Wikipedia, crowdsourcing, research, and creative fields.
  • Broader Implications:
    • Influence on organizational culture, education, public engagement, and global problem-solving efforts.
  • Challenges and Considerations:
    • Coordination
    • Quality Control
    • Intellectual Property
    • Inclusivity
  • Conclusion: Open collaboration is reshaping how we approach challenges and drive innovation. Its principles offer a pathway to harnessing collective intelligence for positive change in various fields, guiding us towards a more collaborative and innovative future.
Related FrameworkDescriptionWhen to Apply
Open Source Software Development– A collaborative software development model that promotes free access to the source code, transparency, and community-driven contributions. Open source projects allow developers worldwide to collaborate on code, share knowledge, and improve software collectively. Open source software is typically licensed to allow anyone to view, modify, and distribute the code freely. Open collaboration is inherent in open source development, as contributors work together across geographical boundaries and organizational affiliations to innovate, solve problems, and create high-quality software solutions collaboratively.– Applicable in software development, technology innovation, and knowledge sharing where fostering collaboration, transparency, and community engagement are essential for driving innovation and advancing technological progress. Open source software development complements Open Collaboration by providing a model for decentralized collaboration, peer production, and knowledge sharing, enabling developers to collaborate effectively, leverage collective intelligence, and create software solutions that benefit the broader community and contribute to societal progress and digital inclusion.
Open Innovation– A collaborative approach to innovation that involves sharing ideas, resources, and knowledge across organizational boundaries to develop new products, services, or business models. Open innovation recognizes that valuable ideas and expertise exist both inside and outside an organization and seeks to harness external insights and capabilities through partnerships, co-creation, and crowdsourcing. Open collaboration is central to open innovation, as organizations collaborate with external stakeholders, including customers, suppliers, and competitors, to access diverse perspectives, accelerate innovation, and drive competitive advantage.– Relevant in product development, R&D, and business strategy where accessing external expertise, fostering collaboration, and driving innovation are strategic imperatives for achieving growth and competitiveness. Open innovation complements Open Collaboration by providing a framework for leveraging external resources, co-creating value, and tapping into the collective wisdom of crowds, enabling organizations to accelerate innovation cycles, reduce development costs, and bring innovative solutions to market faster to meet evolving customer needs and market demands.
Open Access Publishing– A publishing model that provides unrestricted access to scholarly articles and research publications online, free of charge or subscription fees. Open access publishing enables researchers, educators, and the public to access and share scientific knowledge freely, fostering collaboration, innovation, and global knowledge exchange. Open collaboration is fundamental to open access publishing, as authors, reviewers, and readers engage in transparent and participatory processes to produce, evaluate, and disseminate research findings openly and inclusively.– Applicable in academic research, scientific publishing, and knowledge dissemination where promoting accessibility, transparency, and collaboration are critical for advancing scholarship and driving scientific progress. Open access publishing complements Open Collaboration by providing a platform for sharing knowledge, facilitating interdisciplinary collaboration, and democratizing access to scientific information, enabling researchers and educators worldwide to collaborate, innovate, and address complex societal challenges more effectively through evidence-based decision-making and informed policymaking.
Open Data Initiatives– Initiatives that aim to make data freely available to the public for access, use, and redistribution without restrictions. Open data initiatives promote transparency, accountability, and innovation by providing valuable datasets from government agencies, research institutions, and businesses for public use and analysis. Open collaboration is integral to open data initiatives, as data providers, developers, and users collaborate to collect, standardize, and disseminate data openly, enabling data-driven decision-making, civic engagement, and economic development.– Relevant in government transparency, data-driven policymaking, and innovation ecosystems where promoting data accessibility, interoperability, and collaboration are strategic priorities for fostering transparency, accountability, and innovation. Open data initiatives complement Open Collaboration by providing a foundation for collaborative data sharing, analysis, and visualization, enabling stakeholders to leverage data effectively, address societal challenges, and drive positive social, economic, and environmental outcomes through evidence-based policymaking and informed decision-making.
Open Source Hardware– A collaborative approach to hardware design and manufacturing that promotes free access to design specifications, schematics, and source files, allowing anyone to study, modify, and distribute hardware designs freely. Open source hardware projects enable engineers, makers, and enthusiasts to collaborate on hardware development, share knowledge, and build upon each other’s work to create innovative and customizable hardware solutions. Open collaboration is essential to open source hardware, as contributors collaborate across disciplines and expertise to design, prototype, and manufacture hardware products collaboratively and transparently.– Applicable in engineering, product prototyping, and maker communities where fostering collaboration, knowledge sharing, and innovation are key drivers for advancing hardware development and democratizing access to technology. Open source hardware complements Open Collaboration by providing a platform for collaborative hardware design, experimentation, and innovation, enabling individuals and communities to co-create hardware solutions, customize designs, and share innovations openly to address diverse needs and challenges in areas such as education, healthcare, and sustainability.
Open Government Initiatives– Government initiatives that promote transparency, citizen participation, and collaboration through open data, open meetings, and open governance practices. Open government initiatives aim to enhance public trust, accountability, and civic engagement by making government processes, decisions, and data accessible and understandable to citizens. Open collaboration is fundamental to open government initiatives, as governments engage citizens, civil society organizations, and other stakeholders in co-creating policies, delivering services, and solving public problems collaboratively and inclusively.– Relevant in public administration, citizen engagement, and policy development where promoting transparency, accountability, and citizen participation are strategic imperatives for strengthening democratic governance and fostering social inclusion. Open government initiatives complement Open Collaboration by providing platforms and processes for collaborative policymaking, service delivery, and decision-making, enabling governments and citizens to work together to address complex societal challenges, improve public services, and advance democratic values and principles effectively.
Open Education Resources (OER)– Educational materials and resources that are freely available for educators, students, and self-learners to use, adapt, and share without cost or copyright restrictions. Open education resources include textbooks, courses, videos, and interactive learning materials that promote accessibility, affordability, and flexibility in education. Open collaboration is central to OER, as educators, content creators, and learners collaborate to develop, curate, and share educational resources openly and collaboratively, enabling equitable access to high-quality learning materials and fostering lifelong learning opportunities for all.– Applicable in education, e-learning, and skills development where promoting access, affordability, and collaboration are strategic priorities for expanding educational opportunities and empowering learners globally. Open education resources complement Open Collaboration by providing a platform for collaborative content creation, sharing, and reuse, enabling educators and learners to co-create and customize educational materials, adapt pedagogical approaches, and facilitate interactive and engaging learning experiences that meet diverse learning needs and preferences effectively.
Open Science Collaboration– A global movement that promotes openness, transparency, and reproducibility in scientific research and scholarship. Open science collaboration advocates for sharing research data, methods, and findings openly to accelerate scientific discovery, improve research reproducibility, and address global challenges collaboratively. Open collaboration is inherent in open science, as researchers, institutions, and funders collaborate across disciplines and borders to conduct research transparently, share knowledge, and solve complex problems collectively.– Relevant in scientific research, academic publishing, and interdisciplinary collaboration where promoting transparency, reproducibility, and collaboration are essential for advancing scientific knowledge and addressing pressing societal challenges. Open science collaboration complements Open Collaboration by providing principles and practices for transparent research, data sharing, and collaboration, enabling researchers and institutions to work together more effectively, accelerate innovation, and generate actionable insights that contribute to scientific progress and social impact.
Open Source Hardware– A collaborative approach to hardware design and manufacturing that promotes free access to design specifications, schematics, and source files, allowing anyone to study, modify, and distribute hardware designs freely. Open source hardware projects enable engineers, makers, and enthusiasts to collaborate on hardware development, share knowledge, and build upon each other’s work to create innovative and customizable hardware solutions. Open collaboration is essential to open source hardware, as contributors collaborate across disciplines and expertise to design, prototype, and manufacture hardware products collaboratively and transparently.– Applicable in engineering, product prototyping, and maker communities where fostering collaboration, knowledge sharing, and innovation are key drivers for advancing hardware development and democratizing access to technology. Open source hardware complements Open Collaboration by providing a platform for collaborative hardware design, experimentation, and innovation, enabling individuals and communities to co-create hardware solutions, customize designs, and share innovations openly to address diverse needs and challenges in areas such as education, healthcare, and sustainability.
Open Education Resources (OER)– Educational materials and resources that are freely available for educators, students, and self-learners to use, adapt, and share without cost or copyright restrictions. Open education resources include textbooks, courses, videos, and interactive learning materials that promote accessibility, affordability, and flexibility in education. Open collaboration is central to OER, as educators, content creators, and learners collaborate to develop, curate, and share educational resources openly and collaboratively, enabling equitable access to high-quality learning materials and fostering lifelong learning opportunities for all.– Applicable in education, e-learning, and skills development where promoting access, affordability, and collaboration are strategic priorities for expanding educational opportunities and empowering learners globally. Open education resources complement Open Collaboration by providing a platform for collaborative content creation, sharing, and reuse, enabling educators and learners to co-create and customize educational materials, adapt pedagogical approaches, and facilitate interactive and engaging learning experiences that meet diverse learning needs and preferences effectively.
Open Science Collaboration– A global movement that promotes openness, transparency, and reproducibility in scientific research and scholarship. Open science collaboration advocates for sharing research data, methods, and findings openly to accelerate scientific discovery, improve research reproducibility, and address global challenges collaboratively. Open collaboration is inherent in open science, as researchers, institutions, and funders collaborate across disciplines and borders to conduct research transparently, share knowledge, and solve complex problems collectively.– Relevant in scientific research, academic publishing, and interdisciplinary collaboration where promoting transparency, reproducibility, and collaboration are essential for advancing scientific knowledge and addressing pressing societal challenges. Open science collaboration complements Open Collaboration by providing principles and practices for transparent research, data sharing, and collaboration, enabling researchers and institutions to work together more effectively, accelerate innovation, and generate actionable insights that contribute to scientific progress and social impact.

Read Next: Organizational Structure.

Types of Organizational Structures

organizational-structure-types
Organizational Structures

Siloed Organizational Structures

Functional

functional-organizational-structure
In a functional organizational structure, groups and teams are organized based on function. Therefore, this organization follows a top-down structure, where most decision flows from top management to bottom. Thus, the bottom of the organization mostly follows the strategy detailed by the top of the organization.

Divisional

divisional-organizational-structure

Open Organizational Structures

Matrix

matrix-organizational-structure

Flat

flat-organizational-structure
In a flat organizational structure, there is little to no middle management between employees and executives. Therefore it reduces the space between employees and executives to enable an effective communication flow within the organization, thus being faster and leaner.

Connected Business Frameworks

Portfolio Management

project-portfolio-matrix
Project portfolio management (PPM) is a systematic approach to selecting and managing a collection of projects aligned with organizational objectives. That is a business process of managing multiple projects which can be identified, prioritized, and managed within the organization. PPM helps organizations optimize their investments by allocating resources efficiently across all initiatives.

Kotter’s 8-Step Change Model

kotters-8-step-change-model
Harvard Business School professor Dr. John Kotter has been a thought-leader on organizational change, and he developed Kotter’s 8-step change model, which helps business managers deal with organizational change. Kotter created the 8-step model to drive organizational transformation.

Nadler-Tushman Congruence Model

nadler-tushman-congruence-model
The Nadler-Tushman Congruence Model was created by David Nadler and Michael Tushman at Columbia University. The Nadler-Tushman Congruence Model is a diagnostic tool that identifies problem areas within a company. In the context of business, congruence occurs when the goals of different people or interest groups coincide.

McKinsey’s Seven Degrees of Freedom

mckinseys-seven-degrees
McKinsey’s Seven Degrees of Freedom for Growth is a strategy tool. Developed by partners at McKinsey and Company, the tool helps businesses understand which opportunities will contribute to expansion, and therefore it helps to prioritize those initiatives.

Mintzberg’s 5Ps

5ps-of-strategy
Mintzberg’s 5Ps of Strategy is a strategy development model that examines five different perspectives (plan, ploy, pattern, position, perspective) to develop a successful business strategy. A sixth perspective has been developed over the years, called Practice, which was created to help businesses execute their strategies.

COSO Framework

coso-framework
The COSO framework is a means of designing, implementing, and evaluating control within an organization. The COSO framework’s five components are control environment, risk assessment, control activities, information and communication, and monitoring activities. As a fraud risk management tool, businesses can design, implement, and evaluate internal control procedures.

TOWS Matrix

tows-matrix
The TOWS Matrix is an acronym for Threats, Opportunities, Weaknesses, and Strengths. The matrix is a variation on the SWOT Analysis, and it seeks to address criticisms of the SWOT Analysis regarding its inability to show relationships between the various categories.

Lewin’s Change Management

lewins-change-management-model
Lewin’s change management model helps businesses manage the uncertainty and resistance associated with change. Kurt Lewin, one of the first academics to focus his research on group dynamics, developed a three-stage model. He proposed that the behavior of individuals happened as a function of group behavior.

Organizational Structure Case Studies

OpenAI Organizational Structure

openai-organizational-structure
OpenAI is an artificial intelligence research laboratory that transitioned into a for-profit organization in 2019. The corporate structure is organized around two entities: OpenAI, Inc., which is a single-member Delaware LLC controlled by OpenAI non-profit, And OpenAI LP, which is a capped, for-profit organization. The OpenAI LP is governed by the board of OpenAI, Inc (the foundation), which acts as a General Partner. At the same time, Limited Partners comprise employees of the LP, some of the board members, and other investors like Reid Hoffman’s charitable foundation, Khosla Ventures, and Microsoft, the leading investor in the LP.

Airbnb Organizational Structure

airbnb-organizational-structure
Airbnb follows a holacracy model, or a sort of flat organizational structure, where teams are organized for projects, to move quickly and iterate fast, thus keeping a lean and flexible approach. Airbnb also moved to a hybrid model where employees can work from anywhere and meet on a quarterly basis to plan ahead, and connect to each other.

Amazon Organizational Structure

amazon-organizational-structure
The Amazon organizational structure is predominantly hierarchical with elements of function-based structure and geographic divisions. While Amazon started as a lean, flat organization in its early years, it transitioned into a hierarchical organization with its jobs and functions clearly defined as it scaled.

Apple Organizational Structure

apple-organizational-structure
Apple has a traditional hierarchical structure with product-based grouping and some collaboration between divisions.

Coca-Cola Organizational Structure

coca-cola-organizational-structure
The Coca-Cola Company has a somewhat complex matrix organizational structure with geographic divisions, product divisions, business-type units, and functional groups.

Costco Organizational Structure

costco-organizational-structure
Costco has a matrix organizational structure, which can simply be defined as any structure that combines two or more different types. In this case, a predominant functional structure exists with a more secondary divisional structure. Costco’s geographic divisions reflect its strong presence in the United States combined with its expanding global presence. There are six divisions in the country alone to reflect its standing as the source of most company revenue. Compared to competitor Walmart, for example, Costco takes more a decentralized approach to management, decision-making, and autonomy. This allows the company’s stores and divisions to more flexibly respond to local market conditions.

Dell Organizational Structure

dell-organizational-structure
Dell has a functional organizational structure with some degree of decentralization. This means functional departments share information, contribute ideas to the success of the organization and have some degree of decision-making power.

eBay Organizational Structure

ebay-organizational-structure
eBay was until recently a multi-divisional (M-form) organization with semi-autonomous units grouped according to the services they provided. Today, eBay has a single division called Marketplace, which includes eBay and its international iterations.

Facebook Organizational Structure

facebook-organizational-structure
Facebook is characterized by a multi-faceted matrix organizational structure. The company utilizes a flat organizational structure in combination with corporate function-based teams and product-based or geographic divisions. The flat organization structure is organized around the leadership of Mark Zuckerberg, and the key executives around him. On the other hand, the function-based teams are based on the main corporate functions (like HR, product management, investor relations, and so on).

Goldman Sachs’ Organizational Structure

goldman-sacks-organizational-structures
Goldman Sachs has a hierarchical structure with a clear chain of command and defined career advancement process. The structure is also underpinned by business-type divisions and function-based groups.

Google Organizational Structure

google-organizational-structure
Google (Alphabet) has a cross-functional (team-based) organizational structure known as a matrix structure with some degree of flatness. Over the years, as the company scaled and it became a tech giant, its organizational structure is morphing more into a centralized organization.

IBM Organizational Structure

ibm-organizational-structure
IBM has an organizational structure characterized by product-based divisions, enabling its strategy to develop innovative and competitive products in multiple markets. IBM is also characterized by function-based segments that support product development and innovation for each product-based division, which include Global Markets, Integrated Supply Chain, Research, Development, and Intellectual Property.

McDonald’s Organizational Structure

mcdonald-organizational-structure
McDonald’s has a divisional organizational structure where each division – based on geographical location – is assigned operational responsibilities and strategic objectives. The main geographical divisions are the US, internationally operated markets, and international developmental licensed markets. And on the other hand, the hierarchical leadership structure is organized around regional and functional divisions.

McKinsey Organizational Structure

mckinsey-organizational-structure
McKinsey & Company has a decentralized organizational structure with mostly self-managing offices, committees, and employees. There are also functional groups and geographic divisions with proprietary names.

Microsoft Organizational Structure

microsoft-organizational-structure
Microsoft has a product-type divisional organizational structure based on functions and engineering groups. As the company scaled over time it also became more hierarchical, however still keeping its hybrid approach between functions, engineering groups, and management.

Nestlé Organizational Structure

nestle-organizational-structure
Nestlé has a geographical divisional structure with operations segmented into five key regions. For many years, Swiss multinational food and drink company Nestlé had a complex and decentralized matrix organizational structure where its numerous brands and subsidiaries were free to operate autonomously.

Nike Organizational Structure

nike-organizational-structure
Nike has a matrix organizational structure incorporating geographic divisions. Nike’s matrix structure is also present at the regional and sub-regional levels. Managerial responsibility is segmented according to business unit (apparel, footwear, and equipment) and function (human resources, finance, marketing, sales, and operations).

Patagonia Organizational Structure

patagonia-organizational-structure
Patagonia has a particular organizational structure, where its founder, Chouinard, disposed of the company’s ownership in the hands of two non-profits. The Patagonia Purpose Trust, holding 100% of the voting stocks, is in charge of defining the company’s strategic direction. And the Holdfast Collective, a non-profit, holds 100% of non-voting stocks, aiming to re-invest the brand’s dividends into environmental causes.

Samsung Organizational Structure

samsung-organizational-structure (1)
Samsung has a product-type divisional organizational structure where products determine how resources and business operations are categorized. The main resources around which Samsung’s corporate structure is organized are consumer electronics, IT, and device solutions. In addition, Samsung leadership functions are organized around a few career levels grades, based on experience (assistant, professional, senior professional, and principal professional).

Sony Organizational Structure

sony-organizational-structure
Sony has a matrix organizational structure primarily based on function-based groups and product/business divisions. The structure also incorporates geographical divisions. In 2021, Sony announced the overhauling of its organizational structure, changing its name from Sony Corporation to Sony Group Corporation to better identify itself as the headquarters of the Sony group of companies skewing the company toward product divisions.

Starbucks Organizational Structure

starbucks-organizational-structure
Starbucks follows a matrix organizational structure with a combination of vertical and horizontal structures. It is characterized by multiple, overlapping chains of command and divisions.

Tesla Organizational Structure

tesla-organizational-structure
Tesla is characterized by a functional organizational structure with aspects of a hierarchical structure. Tesla does employ functional centers that cover all business activities, including finance, sales, marketing, technology, engineering, design, and the offices of the CEO and chairperson. Tesla’s headquarters in Austin, Texas, decide the strategic direction of the company, with international operations given little autonomy.

Toyota Organizational Structure

toyota-organizational-structure
Toyota has a divisional organizational structure where business operations are centered around the market, product, and geographic groups. Therefore, Toyota organizes its corporate structure around global hierarchies (most strategic decisions come from Japan’s headquarter), product-based divisions (where the organization is broken down, based on each product line), and geographical divisions (according to the geographical areas under management).

Walmart Organizational Structure

walmart-organizational-structure
Walmart has a hybrid hierarchical-functional organizational structure, otherwise referred to as a matrix structure that combines multiple approaches. On the one hand, Walmart follows a hierarchical structure, where the current CEO Doug McMillon is the only employee without a direct superior, and directives are sent from top-level management. On the other hand, the function-based structure of Walmart is used to categorize employees according to their particular skills and experience.

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