Trend Shift 5: value capture depends on work flow rather than on organizational structure

Summary

McKinsey's fifth shift argues that the next gains in productivity will come from how work moves through an organization rather than from how the organization chart is drawn. Its updated research on organizing to create value finds that structure is only one part of the picture. Lasting value capture depends mostly on how work flows across functions and management levels. Many organizations still default to restructuring because it looks accountable and controllable, yet changing the chart without redesigning workflows often brings costs and inefficiencies back. The report recommends radically simplifying and unifying processes, eliminating duplication, synchronizing information, streamlining decisions, and automating where possible. It observes that leaders in North America and Europe are beginning to plan end-to-end optimization.