1. Mechanics of a Molecular Organizational Structure
By J David Schreiber
A MolecularOrganizational Structure consistof across functional categoryorproductfocusedbusiness
unitswhere eachof the disciplinesof businessare representedandleadbythose disciplinesas
necessary. The MolecularOrganizationalStructure isbased off three basicprinciples:
 Business units are self-contained and either multiply or diminish as necessary.
 There is a balance of the four influencers: Customer, Labor, Shareholder, and Time.
 The business discipline leads the decision-making process over the personality of the
person in the roll.
Self-contained Business Units
A Molecular Organizational Structure is based on a self-contained business unit model. Each
unit can operate independently on its own, however benefits from the collective synergies of
the group. Business Units consist of 4 to 7 members with at least one member representing
each of the 4 influencers. As the Business Unit grows and the work load is greater than the
capacity of 7 members, a new business unit is created to handle the additional work. In the
same manner if a business unit is no longer meeting its Key Performance Indicators KPI’s then
the unit is disbanded.
Once there is more than one business unit, an executive unit is assigned. The executive unit
will take leadership responsibility of the organization. In a young organization with only two or
three business units the executive unit may continue to manage an assigned category or
product-line in addition to its executive responsibilities. As units are growing a person may be
represented on two or more teams depending on the work load of that discipline.
Business units are self-managed, internally recruited (meaning all members must agree to work
together), and set their own KPI’s. This includes their financial metrics and compensation.
Similar to a matrix organization each function or discipline of the team will partner and leverage
best practices with similar disciplines from other teams. The executive team member of each
discipline will not only share best practices, but the vision of the executive business unit.
Executive team members will also insure there is a standardization of practice in their discipline
among the other business units.
A Balance of Influencers
All organizations consist of four major influencers: The Customer, Labor, Shareholder, and
Time.
What if an organization could balance the needs of its influencers? Have mechanisms in place,
so that as market share grows the right balance of labor is in place to respond. What if
investors could see a ROI that was consistent and reliable? What if the calendar was managed
well enough that the organization rarely had to respond with urgency?

2. Mechanics of a Molecular Organizational Structure
By J David Schreiber
By insuring each of the influencers are represented in the decision-making processes, an
organization has the best chances of balancing the needs of each. A molecular organizational
structure does this:
 First: Each business unit requires that at least one person (or business discipline) is
representing one of the 4 influencers, the customer, labor, shareholder, and time.
 Second: Each business discipline will lead in their area of expertise. For example, the
person leading the marketing discipline, will take the leadership role in areas of
marketing and ensure the needs of the customer are met. Project managers will lead
the calendar and ensure the influence of time is managed. (see discipline responsibility
chart)
 Third: Each discipline will have equal weight in the decision-making process. Disciplines
representing the shareholders for example will have no more influence than the
operations or (labor) disciplines.
Business Discipline over Personality Leadership
It is only natural that stronger personalities will lead an organization in the direction of their
interest. A product team for example, with a strong product engineer may lead a team to
spend more time on perfecting the development of a product, even though the cost and the
calendar would advise otherwise. A team with a strong project manager may influence a team
to put a product on the market before all the testing is done or capacity is available to
manufacture to meet calendar expectations. Personalities also tend to favor more like minded
people on their teams. A very creative company for example will tend to ignore the minority of
pragmatic leaders until urgency hits the organization such as a lack of funding or a failed
deliverable.
In an ideal world, each business discipline in a company would be led by a person with enough
credibility in the discipline that all the other members of the organization would respect that
leader’s influence. Unfortunately, credibility takes time to establish and even then, it is hard to
replicate in a growth environment. A molecular organizational structure (MOS) counter
balances the influence of personality to some extent with structure. It provides more value to
the discipline then the personality by allowing each roll veto power. Credibility is still required
as in all leadership, however by placing a scoring structure into the decision-making process,
the influence of the decision is more accountable. Increased accountability will lead to
increased credibility, and there for better leadership.

3. Mechanics of a Molecular Organizational Structure
By J David Schreiber
MOS ORG CHART
Business Team
ProductA Team
ProductB Team
Product
Development
Finance
Manager
Supply Chain
Manager Marketing
Manager
Logistics
Business
Manager
Finance
Manager
Supply Chain
Manager
Marketing
Manager
Online Sales
Project
Management
Finance
Manager
Manufacturing
Manager
Marketing
Manager
Product
Development
Business
Manager
Labor ShareholderTime Customer
Product
Development

4. Mechanics of a Molecular Organizational Structure
By J David Schreiber
Influencers and Discipline Examples Chart
Labor Time Customer Shareholder
Manufacturing Business Manager Marketing Finance
Logistics Product Manager Product Design Accounting
Fulfillment Admin On line Sales Asset Management
Commercialization Program Manager Product Development Board of Directors