Organization Structure
With the rapid changes of a disrupted marketplace, it is wise to continually review your organization structure. As a senior in your organization, your leadership to align your company resources with your changing revenue base could be the most important task you have.
In the past, organization structure was determined by the traditional organization chart – the names and titles (power to make decisions) of who worked for whom. In times of crises, one of the first initiatives by senior management was to reorganize – move from centralized control to de-centralized autonomous work groups, and then back again when the previous change did not work out or the power base changed. Moving to a centralized command and control organization structure in times of crisis is common, especially when senior management feels out of control themselves. Usually centralized control is not designed to release the creative initiative of staff. Because decision-making is often limited to senior management, often the rank in file will sit back and spend more time complaining about what is wrong versus helping find the solution to the problem.
Where we all missed the boat was how to create the structure in the first place. We should start with our customers and continually evaluate what and why they buy, now and in the future. The next step is designing the business processes that deliver the highest value, in the most efficient method, to those customers. This design will create the organization structure: who does what and how they do it; performance standards and compensation aligned with value delivered; and often overlooked, level of authority to make decisions.
Seeking the help of outsourced expertise can help. What you will discover when you determine the optimized structure to deliver quality value, is the opportunity to outsource much of what was traditionally included in the previous organization hierarchy. Having a trusted project provider by your side will help you create an organization structure that provides a competitive advantage. GMO