An organizational model describes how your studio employees work together: how tasks are delegated to people, how people collaborate to complete projects and who supervises the work to make sure it’s great. It should be a reflection of how your studio earns revenue—the mix of types of work and products created for your customers—and of your studio philosophy. This document visualizes illustrations of common organizational models for certain types of design businesses. This content is referenced on page 264 of Success by Design: The Essential Business Reference for Designers by David Sherwin, published by HOW Books. Get the book at http://amzn.to/successbydesign

1. Example Organizational
Models for Design
Businesses
Bonus Content for readers of
Success by Design: The Essential
Business Reference for Designers
David Conrad + David Sherwin
1

2. Does your business have
an organizational model?
They are reflections of revenue and philosophy.
Here a few quick examples.
Organizational Models David Conrad + David Sherwin 2

3. CHAIN OF COMMAND organizational model
Where it works:
• pecialized functions for employees
S YOU WILL DO
MY BIDDING.
(a.k.a. assembly line work model)
• an be modified to encourage
C
cross-department collaboration PRINCIPAL
Where it doesn’t work:
• Small to mid-sized studios CREATIVE ACCOUNT DIRECTOR
ACCOUNT
• Multiple principals DIRECTOR DIRECTOR DIRECTOR
OF TECH.
• Poor management
UX/UI
ART ACCOUNT DEVELOP-
ACCOUNT
DESIGN
DIRECTOR MANAGER MENT LEAD
MANAGER
LEAD
VISUAL UX GOFER +
DEVELOPER
DESIGNER DESIGNER LACKEY
PRODUCTION YESSIR! JR.
ARTIST DEVELOPER
SOURCE: CAMERON FOOTE
Organizational Models David Conrad + David Sherwin 3

4. COACHING organizational model
Where it works:
• Small to mid-sized studios
• eam members are stronger
T
GO TEAM GO!
than the principals, own projects,
see the big picture
Where it doesn’t work: PRINCIPAL
• Studios with 25+ people
• rincipal doesn’t delegate
P
CREATIVE
• eam isn’t rewarded for
T DIRECTOR
greater ownership
Poor coaching just
ART SENIOR ACCOUNT
ART ACCOUNT
FLASH
creates a chain-of- DIRECTOR DESIGNER DIRECTOR
MANAGER DEVELOPER
MANAGER
command model.
JR.
INTERN
DESIGNER
SOURCE: CAMERON FOOTE
Organizational Models David Conrad + David Sherwin 4

5. associate organizational model
Where it works:
• Small to mid-sized studios
• reative leads take stake
C WELCOME
TO THE CLUB.
in company, earn comission
and/or profit
• rincipal earns less profit
P PRINCIPAL
year over year, but business
is supported more by staff
Where it doesn’t work: ASSOCIATE ASSOCIATE ASSOCIATE
• rincipal doesn’t delegate
P
properly to associates
ART ACCOUNT
PROJECT ACCOUNT
• ower-level staff isn’t
L DIRECTOR MANAGER
DEVELOPER
MANAGER
promoted to associate
Also known as a collective JR.
INTERN
when there is no talent pool. DESIGNER
TALENT POOL
SOURCE: CAMERON FOOTE
Organizational Models David Conrad + David Sherwin 5

6. incubator organizational model
A design studio that also
functions as a product +
service incubator. Often
ITUNES APP STORE,
split 50/50 between HERE WE COME!
personal and client work.
Where it works:
PRINCIPAL
• tudio is structured to
S
earn revenue from apps,
sites, ads, products, etc. BUSINESS/
APP GURU
• roper balance between
P
billings and studio projects
Where it doesn’t work: DESIGNER/ DEVELOPER/
ACCOUNT DESIGNER/
ACCOUNT
UX/SITE TECH
MANAGER ACCOUNTING
MANAGER
• verhead for product
O ADMIN. SUPPORT
isn’t covered by billings
• o business plan or
N INTERN/
KEEPER OF
acumen outside selling TWITTER
design services
Organizational Models David Conrad + David Sherwin 6

7. HYBRID organizational model
Small design studio that can
mix, match, and experiment
with various other models. PRINCIPAL PRINCIPAL PRINCIPAL
Where it works:
• Tight-knit, collaborative staff JR. INTERN,
DESIGNER ETC.
• Low head count
• illingness to experiment,
W
test, and iterate models fast
PROFIT COLLECTIVE PRODUCT
• kin in the game
S SHARING LEADERSHIP INCUBATION
Where it doesn’t work: FREELANCE FLAT EVENT
STAFFERS ORG PRODUCTION
• nitial revenue streams
I
of the studio aren’t strong
ART STOCK FANCY
• ack of shared responsibility
L GALLERY CREATION CUPCAKES
• urnout if treated too much
B
like a startup design firm INGREDIENTS
Organizational Models David Conrad + David Sherwin 7

8. Bill for
time
Mark up
Capital
investment
Produce
sell direct
Lease
resources
Monetize
IP
Sell off
Alignment
between revenue
and staffing
PRINCIPAL
is critical!
ART SENIOR ACCOUNT
ART ACCOUNT PRO-
DIRECTOR DESIGNER DIRECTOR
MANAGER MANAGER GRAMMER
JR. DESIGN
DESIGNER INTERN
Organizational Models David Conrad + David Sherwin 8

9. Bill for
time
Mark up
Capital
investment
Produce
sell direct
Lease
resources
Monetize
IP
Sell off
Diversifying
revenue or hiring
may change
PRINCIPAL
your org model…
BUSINESS/
APP GURU
DESIGNER/ DESIGNER/ DEVELOPER/
ACCOUNT DESIGNER/
ACCOUNT OFFICE
UX/SITE UX/SITE TECH
MANAGER ACCOUNTING
MANAGER MANGER
ADMIN. ADMIN. SUPPORT
Organizational Models David Conrad + David Sherwin 9

10. learn more:
sbdbook.com
buy the book:
amzn.to/successbydesign
David Sherwin
david@changeorderblog.com
@changeorder
David Conrad
david@designcommission.com
designcommission.com
More about business + process of design:
changeorderblog.com
©2012 David Sherwin and David Conrad. All rights reserved. No duplication
without written permission of the author. Examples shown are for illustra-
tive purposes only, and should not be substituted for hiring professionals for
things like accounting, bookkeeping, and other critical stuff. Be well and let
us know how it goes.
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