Functional Consolidation Model
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.
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