How Interconnected Organizational Architecture Drive Long-Term Competitiveness: Comparative Case Study of Puig and Janus Henderson
DOI:
https://doi.org/10.71222/7sndjf49Keywords:
organizational architecture, assignment of decision rights, rewards and incentives, performance evaluationAbstract
This comparative study explores how organizational architecture influences long-term competitiveness through two contrasting cases. The Spanish family firm Puig successfully addressed intergenerational succession challenges by adopting family self-disempowerment — decentralize family control, integrate professional managers, and enforce talent selection process. In contrast, Janus Henderson’s structural flaws — centralized family control, excessive focus on quantifiable short-term incentives, and fragmented evaluations resulted in prolonged inefficiencies and capital outflows. Therefore, the analysis identifies three critical success factors: balanced allocation of decision rights to reduce information asymmetries, incentive systems bridging individual and organizational goals, and performance evaluations emphasizing collaboration over narrow metrics.
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