Organizational Complexity Index
A diagnostic heuristic inspired by fractal dimension that relates organizational size to hierarchical depth.
A diagnostic heuristic inspired by fractal dimension that relates organizational size to hierarchical depth. Measures structural complexity to identify over-branching or under-branching pathologies.
When to Use Organizational Complexity Index
Use as a quick diagnostic when evaluating organizational structure, comparing divisions or business units, or benchmarking against industry norms.
How to Apply
Map Hierarchy
Document organizational hierarchy from top (CEO) through all branches to individual contributors.
Outputs
- Org chart
Count Parameters
Count total hierarchical levels (L) from CEO to frontline. Count total employees (N).
Outputs
- L (levels)
- N (employees)
Calculate Index
Compute complexity index: D ≈ log(N) / log(L). Example: 10,000 employees with 5 levels gives D ≈ log(10,000)/log(5) ≈ 5.7
Outputs
- Complexity index D
Interpret Results
Compare to benchmarks: D ≈ 3-4 suggests efficient structure; D > 5 suggests overly complex hierarchy (too many layers); D < 2 suggests excessive flatness (too wide span, low oversight).
Outputs
- Structural diagnosis