Why Every Org Chart Creates Enemies (And How to Fix It)

Every time you draw an org chart, you're picking sides in battles that haven't started yet.

That's just human wiring. Social identity theory shows people quickly form in-groups and out-groups, even on trivial distinctions. Any structure you choose will naturally create "us vs. them" dynamics.

Without intentional design, you get the classic blame cycles: Sales says Marketing sends bad leads, Marketing says Sales doesn't follow up, and Engineering blames both teams for changing requirements mid-sprint.

But you can architect your organization so those tribal instincts work for you instead of against you. Here's how:

Design for the Work

Organize around the work. Map how value flows to the customer and align teams to that flow. Don't organize around internal convenience—and definitely don't design around specifically people. Organize around the critical path from idea to customer value.

Clarify decision authority. Ambiguity breeds conflict and delays. Be explicit about who decides, who's consulted, and who's informed. Unclear authority creates either turf wars or decision paralysis.

Define cross-team handoffs. Wherever work passes between groups, nail down who owns what, what "done" looks like, and how problems get escalated. The real risk isn't within teams; it's in the transitions between them.

Align the Incentives

Set common goals. Give cross-functional groups a small set of shared outcomes—revenue growth, customer retention, cost savings or any other collectively important target. Use cascading goals and KPI trees to show how individual work connects to the bigger picture. This keeps everyone pointed in the same direction instead of optimizing their own corner.

Align rewards with cooperation. If bonuses are based only on silo performance, you'll get silo behavior. Shared metrics and joint outcomes encourage people to actually help each other succeed.

Enable the Collaboration

Support cross-functional work. Make sure teams have the data, tools, and forums needed to work together effectively. If those supports aren't intentional, collaboration erodes under daily pressures and competing priorities.

You can't eliminate tribal instincts—they're hardwired. But you can architect your organization so those instincts work for you instead of against you. You probably can’t eliminate "us vs. them" entirely. But you can design so the structure channels natural group dynamics toward shared execution.