Dear shareholder,

I hope my message finds you well, despite the fact that you are totally screwed.

Markets were changing at an insane rate even before the GPT moment. And now AI has arrived in full force to upend everything. So you are probably asking yourself if your big beautiful business will even survive the next decade.

I’m here to tell you that the solution isn’t in devising some clever strategy, launching new AI products, or buying a startup.

This won’t save you.

Changing your entire org design will — making it capable of changing strategy, launching AI products or buying startups on its own.

There are different names for this.

Decentralized network, ecosystem, platform — to name a few. But the main idea is the same, and quite simple.

You split your slow, monolithic, hierarchical organization into smaller, much more flexible businesses. They get agency, their own P&Ls and freedom to adapt to their environment. They engage in quasi-commercial relationships with their internal suppliers and buyers. They even reach beyond the company, sourcing new suppliers or selling services out in the open.

This whole system works like a free market, with all its strengths of high adaptability and self-governance, while creating the same product within the same value chain — and within the boundaries you define and manage.

Did I say the word “simple”? My sincere apologies.

The idea is simple but the task of transitioning from a traditional org to an ecosystem isn’t. Although the most innovative companies in the world have already proven it to be doable (the cases of Haier, GE Appliances, and Bayer are among the most widely publicized).

Smaller companies are doing it too, staying often unnoticed and reaping in silence the benefits of this new way of growing a sustainable, self-balancing business.

As a former CEO, I’ve studied (in theory and in practice) and taught modular org design for more than a decade, initiating change in more than 200 companies. Being a practitioner, I also personally facilitated the transition to new architecture in more than 20 organizations. Currently I’m providing long-term support for 6 businesses representing various industries and markets (half are enterprises with over 5,000 employees).

If you’re eager to learn how modular org design can secure your company’s future in the age of AI, join me and like-minded founders at a 3-day event. This year, I’m planning two offline introductory workshops - one in the US and one in Europe. Sign up for detailed info and updates.