Source: Fortune
Summary
Citi CEO Jane Fraser’s restructuring of the bank into five divisions reporting directly to her has been a key factor in the company’s turnaround. The move has reduced management layers from 13 to eight, resulting in a “simpler firm” that can operate faster and serve clients better. Citi has logged its highest quarterly revenue in a decade, with all five divisions recording gains. Fraser’s de-layering efforts are part of a broader trend towards flatter organizations, with companies like Meta and Coinbase also adopting similar structures. However, experts warn that flat orgs can sometimes cause problems in practice, and that de-layering should drive a larger agenda rather than just being a cost-cutting exercise.
Our Reading
The numbers tell one story. Citi’s de-layering has led to increased revenue and a simpler firm, but experts like Clifford Oswick and André Spicer caution that flat orgs can be problematic in practice. Fraser’s efforts are part of a broader trend towards flatter organizations, with companies like Meta and Coinbase following suit. However, Oswick notes that “the thing about the structure is [that it’s] one of the least important parts of an organization.” The real key to success lies in having “really good relationships, really strong culture aligned to the organization’s mission.”
Citi’s de-layering is just a means to an end, not the end itself. The real test will be whether Fraser’s broader agenda can drive long-term success.
Author: Evan Null
