Requisite organization (RO) is a term and methodology developed by Elliott Jaques and Kathryn Cason as a result of the research in stratified systems theory, general theory of bureaucracy, work complexity and human capability over 60 years.
[1] According to Jaques, "the term requisite organization means doing business with efficiency and competitiveness, and the release of human imagination, trust, and satisfaction in work.
"[2] Requisite organization is a system designed to get work done with effectiveness in producing valued goods and services to satisfy public needs and at the same time achieving the positive bottom line for the business by means of specialization of functions within vertical stratified and hierarchical organization that is referred to by Jaques as Managerial Accountability Hierarchy:[2][3] Requisite organization is a triple bottom line management methodology which uncovers dysfunctional aspects of strategy, systems, structures, and staff and then realigns them to fit the required complexity of the business, with the purpose to increase and sustain maximum economic value.
[5] In Requisite Organization, companies are classified into eight levels of business complexity based on such criteria as type of value chain (single or multiple), geography of assets (local, regional, national, international, global), operating revenue, etc.
For example, for a Level 6 International Company with single value chain in multiple countries the following stratified hierarchy of bottom line units may be considered optimal in Requisite Organization:[6] The Requisite Organization International Institute (US) was founded in 1999 by Jaques and Cason[7] to continue development and expansion of research on the application of requisite organization.