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A process organization tends to manage purchasing somewhat better than a product organization does.
These teams provide some opportunity for communication and conflict resolution and also a degree of the common identification with product goals that characterizes the product organization.
As illustrated at Plant P, the product organization form allows the greater differentiation in time orientation and structure that specialists need to attack problems.
The plants in a process organization can be expected to undertake one task that the central staff in a product organization cannot adequately perform, however.
Because he thought that the product organization prevented him from seeing problems at the functional level, he struggled throughout the immersion stage.
On the other hand, if the task is of a problem-solving nature, or if management defines it this way, the product organization seems to be more appropriate.
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In each case, the leader in the prior generation was left behind because product organizations underestimated the speed and magnitude of the market transitions.
Many product organizations get stuck as they wait for alignment on major complex decisions.
If you aren't already doing this, a simple way to get started is by reaching out to your colleagues in the sales and product organizations.
By developing rich connections with your sales and product organizations, you'll be taking an important step in building a contingent of leaders across the organization who will support digital transformation.
What the company had to do to recapture market share was clear: dismantle its three independent business units, each with its own expensive staff functions, and replace them with a single multi-product organization.
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