In the light of research on organizational design, the paper outlines an effective design for the strategic organizations of developing societies. Strategic organizations are defined as those organizations with the mission of further growth and development of the sectors they are serving. The data on 31 leading Indian central public sector enterprises indicates that the postulated effective organizational design for Third World strategic organizations is feasible. The data on 5 strategic Indian organizations indicates that rapid, sometimes spectacular improvement in productivity and other indicators of performance accompany management changes towards the design postulated to be effective for strategic organizations.