In today complex business we have to use multi-dimensional organization structures to be able to design effective Organizations. The simple organization have one product, one customer and all employees belong to one legal entity. Requirements on such Organization Design is fairly simple and we can design all lines of reporting within one single dimension. The legal company structure would be the single organization dimension.
But what if the Organization act on multiple markets, have several product offerings and have its workforce scattered around the globe. The requirements on the organization design is then quite complex and single organization dimensions are no longer possible. The organization structures has to be design in a legal dimension, possibly a business area dimension, a project dimension and possibly a market dimension. If the organization design work is done properly, accountability and efficiency will be the result. But if the Organization Designers fail to create clarity via the design, individuals will suffer from ambiguous organization structures and business will suffer from organization inertia.