There are two main ways to structure an organization: Either a centralized structure around the organization leadership or a decentralized approach with independence of different sub-organizations. ## Functional, Centralized All functions of an organization are centralized, structured under the CEO / leader. The individual functions, for example product, strategy, marketing, finance and so on, are then expressed out and used throughout the organization. The thinking is that economies of scale (with everybody having access to all functions) provides clarity and efficiency. ## Divisional, Decentralized Functions of an organization are bundled into multiple divisions with their own P&L. This creates duplication since each individual division might all have their own marketing team. The thinking is since divisions can make decisions faster and more focused on their specific business, the efficiencies overcome the redundancies. ## Other There are other approaches, like mixed models (divisional business units with cross-functional groups for some functions) or esoteric models like [Holacracy](https://en.wikipedia.org/wiki/Holacracy) and [[Decentralized Autonomous Organizations]].