What a Good Organizational Structure in a Large Company Should Be Like

A good CEO of a large company should possess the breakthrough skill of managing managers, as they are ultimately responsible for a small group of direct reports who in turn manage large teams. This managerial ability should be developed through progressing from managing individual contributors to managing managers at various levels. The skill of managing managers is crucial for scaling up in a company. Additionally, the CEO should have the temperament, desire, and intelligence to run the company successfully, which may limit the pool of suitable candidates. The ideal scenario for a large modern organization is a CEO capable of managing a team of managers who can harness the benefits of scale while still driving innovation. Conversely, a less effective structure involves a CEO who functions primarily as a manager, inhibiting the company's ability to innovate and potentially leading talented individuals to start their own ventures.