This week in regards to Chapter 6, the NBA has implemented a u-form structure when it comes to functional organizational structure in relation to cost leadership. It is a very interesting structure. The NBA has done a brilliant job of keeping managerial cost and confusion down. If you look at the structure of the NBA hierarchy as provided in the above link, there is the NBA commissioner who acts the CEO. The commissioner person with the broad multifunctional perspective. The commissioner oversees multiple people that are in management that all report to him. He has functional specialist such as the deputy commissioner, CIO, CFO, and etc. that oversee all other workers below the management structure. The COO (deputy commissioner) helps the C00 in NBA china. The COO helps the developmental league president and so. The functional specialists such as the CIO and COO then report to the commissioner (CEO). It is a simple yet effective strategy to keep cost down. A small staff with a wide variety of purposes as you can see by the C00 example. As you look at the chart, notice the brilliance behind the current NBA organizational structure. They use a short list of highly skilled people to which enables them to be able to perform a variety tasks keeping the number of managers needed down to a minimum due to the high level of skill. The question to keep in mind that the NBA has realized is: Why hire a slew of managers with minimal capabilities, when you can just hire high skilled people with greater capabilities and knowledge to complete the work of several managers?
David Stern passing down the job of NBA Commissioner to his successor Adam Silver recently