1 What is a functional structure?

A functional structure is a common way of organizing an organization based on the main functions or activities that it performs, such as marketing, finance, production, research and development, and human resources. Each function has its own department or unit, headed by a manager who reports to the top management. The employees within each function have similar skills, expertise, and goals, and they work together to achieve the function's objectives.

2 How does a functional structure support innovation in core competencies?

A functional structure can support innovation in core competencies by allowing each function to focus on its core tasks and processes, and to develop specialized knowledge and skills that can lead to new ideas and solutions. A functional structure can also facilitate communication and collaboration within each function, as the employees share a common language, culture, and vision. Moreover, a functional structure can enable each function to allocate resources and time for innovation projects, and to measure and reward innovation performance.

3 What are the benefits of a functional structure for innovation?

A functional structure for innovation can offer a range of benefits, from enhanced efficiency and quality of core functions to fostering a sense of ownership and accountability among employees. This type of structure can also create a competitive advantage for the organization, allowing it to leverage the unique capabilities and competencies of each function to create value for customers and stakeholders.

4 What are the challenges of a functional structure for innovation?

A functional structure for innovation can present certain difficulties, such as the potential for silos and barriers between functions due to different priorities, perspectives, and incentives. This can lead to a lack of communication and cooperation across functions, which can narrow the diversity and creativity of the innovation process. Furthermore, it can be difficult to coordinate and align the functions to changing customer needs, market trends, and technological developments, thus limiting the organization's adaptation and responsiveness.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?