Reorganizing Around the Constraint
SELECTED WORK 01
Changing who could lead the work before redrawing the organization
Division of Financial Assistance, State Water Resources Control Board · Deputy Director ·
June 2021 - August 2022 · 325+ staff across four branches
Situation
I became Deputy Director in June 2021 as the division was preparing for a sharp increase in workload: up to $6 billion in additional federal State Revolving Fund dollars over five years, plus nearly $2 billion in new State General Fund appropriations. At the same time, administrative functions were split across two branches and technical staff across three. The structure required repeated coordination to maintain consistent policies and procedures, and funding recipients could receive different answers depending on which branch handled their project.
Constraint
The immediate vacancy on my executive team exposed a deeper constraint. All four Assistant Deputy Director positions were tied to engineering or environmental classifications. That meant the branch responsible for agreements, disbursements, credit review, and accounting had to be led by someone from a technical classification, even though its core work was administrative and financial. I could reorganize the boxes, but the new structure would still be limited by who was eligible to lead it.
Leadership approach
I addressed the leadership constraint first, then reorganized the work around the capacity we needed.
Â
Removed the classification constraint. I worked through the requirements for converting the position to a Career Executive Assignment and determined that the existing classification was a changeable constraint, not a fixed requirement of the work.
Â
Built the case around organizational need.  Working with human resources and executive management, I connected the proposed change to the division’s operational needs and the agency’s broader interest in expanding the pool of qualified senior leaders. The proposal then moved through the required external review and public-comment process.
Â
Redesigned around function, not legacy program lines. With human resources and senior managers, we consolidated administrative functions into one branch and technical staff into two. Units were grouped by function so procedures could be standardized and staff could be redeployed as workload shifted.
Â
Learned from the approval process.  I underestimated the difference between strategic agreement and operational urgency. The division needed the position filled quickly, but others in the review chain had different priorities. I would have established clearer ownership, standing check-ins, and more direct communication at each handoff.
Result
CalHR approved the reclassification, and the new Administration and Operator Certification Branch was established in February 2022. The change opened the position to career administrators whose backgrounds better matched the branch’s work. I later used the same approach to convert two additional Assistant Deputy Director positions. A second phase of the reorganization in August 2022 placed 25 new positions and created a Program Support Unit to coordinate cross-division inquiries.
Solve the governing constraint before redrawing the organization.
EXECUTIVE INSIGHT
What this means for a client
Organizational design is rarely just an organization-chart exercise. The first question is - what actually restricts the organization’s ability to perform: structure, authority, leadership capacity, process, or some other foundational limitation? In this case, changing reporting lines before addressing the leadership constraint would have preserved the underlying problem. The practical lesson is to diagnose the governing constraint first, then design the organization around the work and the leadership capacity required to carry it out.
Information current as of October 2026.
Â
This case study describes work performed by Joe Karkoski in his official capacity as a California state employee. It reflects his personal account and analysis, not the views or endorsement of the State Water Resources Control Board, any Regional Water Quality Control Board, or the State of California. Agency actions described were taken through collective staff, management, executive, and governing-board processes.