ABSTRACT
There are two lessons to learn before reorganizing, that is, introducing a new organizational design. Lesson one: all organizations are hierarchical. The article aims at clarifying the difference between hierarchy and bureaucracy. Searching for non-hierarchical design alternatives will be futile. Lesson two: irrespective of whatever organizational design chosen and implemented it does not determine the way the organization will function. The main purpose is to explain why form does not determine function. We know little about how function affects organizational performance. That is why it is difficult to know in advance whether a new design will improve organizational performance or not.