If you think an org chart tells you how power works in an organization, you’re missing most of the picture. Organizational design has long emphasized Structure. Jay Galbraith’s pioneering Star Model, for example, placed Structure among five essential design elements. Although organizational design has evolved considerably since then, leaders continue to perseverate on org charts, repeatedly rearranging reporting relationships in hopes of improving organizational performance.
But an org chart reveals surprisingly little about what actually motivates people. Organizational Power isn’t primarily about who has authority. It’s about what motivates people to act. That’s why I use Power rather than Structure as one of the eight elements in my DHARMA (Design Harmony, Alignment, and Reinforcement Modeling Approach) organizational design framework. Power encompasses the mechanisms that motivate people to do the work an organization needs done. Formal authority matters, but so do expertise, personal influence, rewards, accountability, and the consequences people experience when they act.
The distinction matters because organizations don’t create value simply by defining responsibilities or designing elegant processes. They create value when people are motivated to carry out the work. Power, therefore, is about designing the motivational conditions that turn organizational intentions into action.
And some of the most powerful motivations don’t come from formal authority at all. Consider the difference between someone completing a task to earn a bonus, doing it because their colleagues expect it, and doing it because they genuinely believe it’s the right thing to do. All three motivations can influence behavior, but social expectations and internalized values are more compelling than externally imposed rewards.
That’s the power of Culture. A strong Culture establishes shared values, expectations, and norms that influence behavior throughout an organization. When those expectations become internalized, people need less direction or supervision to act accordingly. Their motivation increasingly comes from within.
In Culture-led Organizational Design, Culture provides a common reference point for designing the organization’s other elements, including Power. Rather than relying exclusively on formal authority, incentives, and controls, leaders can design motivational mechanisms that reinforce behaviors already encouraged by Culture.
Of course, cultural strength alone isn’t enough. A strong Culture can powerfully motivate precisely the wrong behavior. The objective is a Culture aligned with Strategy, supported by a Power structure that reinforces strategically desirable behavior. Some responsibilities will always require formal authority and accountability, regardless of cultural influence.
This is where organizational design progresses from Alignment to Reinforcement to Harmony. Alignment prevents organizational elements from working against one another. Reinforcement makes them work for one another. Harmony emerges when those elements work together with minimal friction, creating a state of organizational flow in which their combined contribution exceeds what each could accomplish independently. That’s the fundamental operating principle behind DHARMA.
Leaders devote considerable attention to defining responsibilities, establishing reporting relationships, and assigning decision rights. But how often do they examine the consequences that actually motivate people to behave as they do? In Culture-led Organizational Design, Power doesn’t merely direct behavior. It reinforces the behaviors that Culture motivates and Strategy requires.
The next time you’re considering an organizational restructuring, look beyond your org chart. What actually motivates people in your organization, and how effectively does your Power structure reinforce those motivations?
Executive Insight
You can’t reorganize your way to better performance simply by moving boxes on an org chart. In Culture-led Organizational Design, the real opportunity lies in understanding how Culture motivates behavior and designing Power mechanisms that reinforce it.