Organization structure impacts engineering productivity

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The Complaint: “The engineering team is too slow!” is a common cry from frustrated CEOs, and as someone who’s been a CTO, SVP of Engineering, and advisor to struggling scaleups, I’ve heard it plenty. However, focusing solely on increasing individual productivity is rarely the solution. Sometimes the answer is changing the organizational structure.

 

The Trap of Flat Structures: 

One case in point: a fast-growing company I advised with a flat engineering structure. Their VP aimed for total engineer accountability, with everyone reporting directly to him and empowered to make decisions. At first glance, it seemed perfect – individual ownership leads to commitment, right?

 

The Problem: 

What unfolded was chaos. Product piled on more and more requests from the market. Senior engineers, recognizing work overload, refused requests, but others felt pressure to “save the day.” even if it meant unreliable commitments. The lack of hierarchical decision-making meant there was no one to question or rationalize the accumulating workload. Ironically, by making every individual equally accountable, the team as a whole became unaccountable. No one could effectively explain why the team was overcommitted, as everyone was equally responsible for making commitments.

The Result:

Lack of predictability, chronic delays, unhappy customers, and a damaged reputation for unreliability.

The Fix: 

Transitioning to a hierarchical structure with experienced team leaders. These leaders owned project responsibility and accountability.

The Outcome: 

This shift prevented overcommitment and improved customer satisfaction through more realistic and reliable project timelines.

The Lesson: 

“If everyone is accountable, nobody is.” Diffuse accountability breeds chaos. Building focused teams with responsible, empowered leaders fosters real accountability, leading to predictable schedules, happier customers, and a thriving engineering culture.

Applying to your situation:

Are you facing similar challenges? Consider these questions:

  • Do you have clear ownership and accountability structures?

  • Are teams appropriately sized and focused?

  • Do leaders have the authority and support to deliver?

Investing in a well-oiled engineering team structure isn’t just about speed – it’s about sustainable growth, customer satisfaction, and lasting success.

 
 

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