Insights / Structure · 6 min read

Two Thirds of Executives Say Their Organizations Are Too Complex

McKinsey's 2026 survey of 10,018 senior executives shows organizational complexity is widely recognized. This piece looks at how to measure it in your company.

By the Nusva Advisory team · Published

Illustration of overlapping, criss-crossing glass panes

Many boards feel their organization is more complex than the business needs. McKinsey's The State of Organizations 2026 shows that most executives around the world feel the same.

Of 10,018 senior executives across 15 countries and 16 industries surveyed from June to September 2025, two thirds think their organizations are overly complex and inefficient.1 Only 30% of organizations reallocate resources enterprise-wide.1

2/3

leaders think their organizations are overly complex and inefficient.

Source [1]
38%

blame rigid organizational structures as the main obstacle.

Source [1]
30%

of organizations reallocate resources enterprise-wide.

Source [1]
7%

of C-suite leaders say they are making progress changing traditional functions, while 66% say those functions must change.

Source [2]

What complexity looks like

Complexity rarely shows on the org chart. In practice it usually appears as approval layers that keep growing, recurring coordination meetings, and work handled by two functions at once. In the same survey, 38% blame rigid organizational structures as the main obstacle, rising to 46% in organizations with more than 30,000 employees.1

Deloitte sees the same pattern from another angle. In 2026 Global Human Capital Trends, 66% of C-suite leaders say traditional functions must change, yet only 7% say they are making progress toward that goal.2 Most leaders know what needs to change, but few have started changing it.

Nusva Advisory's view

Complexity can be measured. Count the layers from the CEO to the front line, the approval steps for a routine decision, and how much work has two owners. All three can be calculated from data the company already has, and they are where the Structure lens of our diagnostic starts. To put a number on it, use the slow-approval cost calculator.

These figures come from global surveys, not from Indonesia specifically. We use them as direction, not as a benchmark for your company.

Sources

  1. McKinsey & Company. The State of Organizations 2026. Survey June to September 2025, 10,018 senior executives across 15 countries and 16 industries. Open source ↗
  2. Deloitte. 2026 Global Human Capital Trends, press release, 4 March 2026. Open source ↗

AI-generated illustrative photo.