Biology of Business

Architecture Measurement Framework

TL;DR

GE's architecture worked until markets accelerated. Architecture measurement catches misalignment 6-12 months before crisis—blood chemistry monitoring for organizations.

By Alex Denne

GE's architecture worked—until it didn't. For decades, centralized control enabled coordination across business units. Then markets accelerated, and GE's architecture became a $200 billion liability. By the time leadership diagnosed the mismatch, Amazon (distributed teams) and Haier (4,000+ autonomous microenterprises) had captured the future. Don't wait until you're gasping—architecture measurement catches these misalignments 6-12 months before crisis.

Your respiratory system doesn't wait for you to feel short of breath. It continuously monitors blood oxygen and CO2, adjusting breathing rate through brainstem circuits. This measurement framework applies the same feedback principle to organizational architecture. Architecture choices—centralized versus distributed decision-making—require continuous monitoring, not one-time design.

Six diagnostic dimensions: Decision Rights Distribution (where do decisions actually happen?), Coordination Overhead (meeting load, approval cycles—high overhead signals over-centralization), Local Adaptation (regional variation, customization frequency—excessive variation signals under-coordination), Knowledge Distribution (information asymmetry, expertise location), Performance Indicators (efficiency metrics favor centralization; adaptability metrics favor distribution), and Architecture Health Check (quarterly assessment of strategic alignment).

Spotify runs quarterly architecture reviews. Amazon's "two-pizza teams" have clear decision rights metrics. Haier's 4,000+ microenterprises measure coordination overhead obsessively. The framework tracks whether your architecture matches your environment—blood chemistry monitoring for organizations. For the full Centralization-Distribution Framework with diagnostic scorecards, see Scale & Complexity.

When to Use Architecture Measurement Framework

When diagnosing current organizational architecture, evaluating whether architecture serves strategic needs, or measuring impact of architecture changes.

How to Apply

1

Assess Decision Rights Distribution

Measure decision latency, escalation rate, override frequency, and decision-making locus.

2

Measure Coordination Overhead

Track meeting load, approval cycles, cross-unit dependencies, and communication patterns.

3

Evaluate Local Adaptation

Analyze regional performance variation, customization frequency, local innovation rate, and response time.

4

Assess Knowledge Distribution

Measure information asymmetry, expertise location, cross-unit learning, and decision quality.

5

Track Performance Indicators

Monitor efficiency metrics (centralization wins), adaptability metrics (distribution wins), coordination metrics (architecture friction), and resilience metrics (distribution wins).

6

Conduct Architecture Health Check

Quarterly review of decision rights, coordination overhead, performance trends, strategic alignment, capabilities, culture, and failure modes.

Related Mechanisms for Architecture Measurement Framework

Related Organisations for Architecture Measurement Framework

Related Organisms for Architecture Measurement Framework