When you’re shaping an org in practice, the work you’re doing usually decomposes to manipulating three levers: structure, incentives, and culture (or, as Andy Grove puts it ‘contractual obligations, economic incentives, and culture’). A good org designer knows that they must pay attention to the interplay between all three elements.

…

I bring up the interplay between structure, incentives and culture because I think highlighting this interplay serves one other purpose: it enlarges the discourse around org design. If you focus on org structure alone, every solution to an org design problem is necessarily a restructuring. This is unrealistic. And, from experience, there are whole classes of problems that may be patched by a change to an incentive system or via a tweak to org culture instead.