The document discusses success and failure in organizational design. For success, effective design must align with strategy, adapt to changing work environments, and focus resources on core capabilities. An ineffective design creates friction that hurts employee morale and performance. Common issues include inability to adapt, unclear roles, duplication, and poor relationships. To test design fitness, the document outlines tests around strategy alignment, flexibility, leadership, feasibility of resources, relationships, accountability, and attracting talent. For failure, reasons include not defining objectives, structuring design around people not business needs, causing unnecessary disruption, side agreements outside the process, skipping assessment of current state, breaking confidentiality during redesign, and not having a change management plan.