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Redesigning the Operating Model Past 200 Employees

Rohan Desai20 January 2025

Reporting structures that worked comfortably at fifty employees tend to strain badly by two hundred, as decision-making that once happened informally now requires layers that did not previously exist.

The clearest sign of an operating model under strain is decisions repeatedly escalating to founders or senior leadership that should be resolved at a functional level. This is rarely a people problem, it is usually a structural one.

A useful diagnostic is to map every recurring decision type against who currently makes it, and compare that against who should be making it based on information proximity. The gaps are usually obvious once mapped.

Redesigning the model is less about adding management layers and more about clarifying decision rights at each existing layer, which is a faster and less disruptive change than most leadership teams expect.