The Functional Consolidation Model

"If you create a division, your division is as successful as you are a priority. So now you have to advocate for your division... that creates what we call politics." — Brian Chesky

What It Is

A restructuring approach that removes General Managers and divisions, organizing the company strictly by function (Design, Engineering, Marketing, etc.). It centralizes decision-making and ensures experts lead experts.

When To Use

• Post-product-market fit companies sensing slowdown in velocity
• Organizations experiencing increased bureaucracy
• When user experience is fracturing across products
• Companies with 100+ employees facing political infighting

Core Principles

1. Eliminate Business Units/Divisions

Move from GM-led verticals (e.g., "Hosts", "China", "Experiences") to central functions.