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Requisite Organization: The CEO's Guide to Creative Structure and Leadership

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Any enterprise can gain a competitive edge in the short-term by introducing new products and services. In the long term,, however, an adaptive and successful enterprise calls for a soundly structured organization with creative staffing and leadership at every level. Dr. Jaques sets out a system of practical working concepts and tools for building organizations and human resources that can beat the competition at home and world-wide know and into the 21st Century.

Step by step, Jacques builds up the concepts, and then sets out the working procedures to enable CEOs, managers, and HR specialists, to develop 'requisite organization', that is to say, organization which enhances entrepreneurial creativity, productive effectiveness, and human satisfaction and morale.

150 pages, Hardcover

First published January 1, 1989

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About the author

Elliott Jaques

41 books6 followers

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Displaying 1 - 8 of 8 reviews
Profile Image for Jurgen Appelo.
Author 9 books963 followers
July 26, 2012
I couldn't finish this book. It is full of old-fashioned management 1.0 thinking. Examples: The higher the manager the better his capabilities should be. Managers are the only ones qualified to do performance appraisals. Only managers should be allowed to hire people. Etc...

My biggest problem with the book is that it claims to be based on science, which is nonsense. The insights from complexity science and systems thinking reveal totally different needs. For example, the author claims we need accurate definitions of terminology in business, just like in physics. But from science we know this to be impossible. The more complex the system the fuzzier the terminology will be. There's no way around that. Terminology in social systems is necessarily the fuzziest.

I give the book 2 stars because there are a few quotes that I liked. For example, "We can agree to be creative and innovative. But the question is how to create the conditions to make it possible to be so." That's one of the few pieces of text I could agree with.

Oh, and the style of writing is terrible. The text consist of nearly a billion bullet points.
Profile Image for Sanggita Trisna.
3 reviews7 followers
December 17, 2011
:: Want to reduce turnover, eliminate micromanaging, improve leadership and staff development, increase productivity, increase employee and managerial satisfaction, achieve organizational goals, and more? Read this book. Follow its directives. :)
Profile Image for Denis Vasilev.
817 reviews106 followers
August 2, 2018
Провокационная книга по менеджменту. Где еще сейчас можно прочесть что твое место в человеческой иерархии с рождения отмечено определенными рамками.
Profile Image for Thai Son.
287 reviews60 followers
December 5, 2025
4/30 I don't hate it, but I don't particularly love it either.
Requisite Organization Action Guide for Managers & Founders
I. Build Structure Around Levels of Work (Strata)

Every role has a maximum time span for which it must make judgments (days, months, years).
Assign roles based on decision complexity, not seniority or personality.
Avoid hierarchy bloat: 7 strata max in any organization. Most orgs need 3–5.

S1 – Day-to-day tasks (hours–days)
S2 – Coordinating tasks (weeks–3 months)
S3 – Managing systems (1–2 years)
S4 – Building functions (2–5 years)
S5–S7 – Strategic or societal-level systems (rare outside large institutions)

If you demand S3 thinking from an S1 role, you will burn people out. If you place S4 thinkers in S2 work, they will disengage.

II. Clarify Accountability—No Ambiguity
Managers are 100% accountable for:
The output of their team
The quality of their team’s decisions
Creating conditions for success (tools, clarity, coaching)
Removing obstacles and ensuring cross-functional flow

Employees are accountable for:
Doing the work
Exercising judgment within their role’s time-span
Speaking up when blocked
If everyone is accountable, no one is. RO insists on sharp lines.

III. Managerial Leadership = 3 Things

Set Context
Define the purpose of the role: Show how it links upward and sideways/ Give clear quality standards
Provide Resources: Budget, equipment, people/ Access to expertise/ Clear processes
Coach Capability: Evaluate judgment, not personality/ Increase delegation as capability grows/ Remove or redesign roles that don’t fit the person

IV. Always Match People to the Work

Use this simple test:

✔ Does the person understand the work?
✔ Can they make decisions with the required time-span?
✔ Do their values align with the role’s demands?

If 2 of 3 fail, change the role or move the person.
Wrong-fit roles cause 80% of organizational dysfunction.

V. Eliminate Compression and Gaps
Compression = two layers doing the same job → confusion
Gaps = no one is accountable for a layer of decision-making → drift or paralysis

VI. Create Requisite Teams
A team is “requisite” when:
Roles cover all needed strata for the mandate
Each member knows their accountability and authority
Cross-functional dependencies are explicit—not assumed
The manager holds final accountability

Avoid:
committees without authority
“flat” teams with hidden hierarchies
role ambiguity masked as empowerment

VII. Compensation = Level of Work

Pay should reflect:
Time-span of the role
Market norms
The capability required

Never pay people for longevity or “busyness.” Pay for decision complexity.

VIII. Talent Development = Building Capability Over Time

Capability grows slowly and predictably.
To grow people:

Give assignments one stratum above their current comfort zone
Monitor decision-making, not effort
Remove them quickly from roles that overwhelm their time-span
Reward growth with expanded accountability, not just titles

IX. Culture = the System You Actually Run

Culture is not words on the wall. It is:
Role clarity
Managerial competence
Consistency of accountability
Fairness in matching people to work
Predictability of decision-making

If these 5 are healthy, culture will be healthy.

X. The Ultimate Requisite Checklist for Any Organization

Right number of layers

Clear roles with clear time-spans
Managers accountable for output
Right people in right roles
Compression removed
Gaps filled
People paid for level of work
Real coaching in place
Cross-functional clarity
A system that scales upward cleanly
Profile Image for Darwin Mott.
5 reviews1 follower
April 2, 2019
No executive in business or government should be taken seriously unless they are armed with this book. It is a beacon to realizing economic development and trust-inducing workplaces. It represents the true beginnings of the end of management alchemy.
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