Thursday, November 3, 2011

Is Your Org Chart Limiting Success?

Recently, I had a discussion with a person who was tasked with recommending some changes to the organizational structure of their company. Most of such changes just does some rearranging either of the boxes in the org chart or shuffle the names between the boxes. There isn't any real change to the organization.

To accomplish a significant leap forward towards fulfilling your vision for the company and the company's mission, sit back and think about what it is you're trying to accomplish. Let the mission determine the team's composition and organization.

Some leading companies have organized around business processes: order fulfillment, research and development (innovation), sales and marketing, etc. Others have combined some departments into some overarching groups: operations (production, procurement, etc.), "omni" engineering (new product, plant/facility, process, industrial, software, hardware, etc.). Some companies have allowed or suggested creative position titles like VP of Creative Dissonance. However, these efforts are still just shuffling the same old elements.

What is your business trying to do?

  • All are trying to find and capture new customers. 
  • All are trying to retain the customers they have. 
  • All are trying to create value for their customers. 
  • All are trying to create an effective and efficient organization. 
Therefore, for your company, you need to ask some questions and put answers down on a blank piece of paper without any preconceived notions of how the organization needs to look.

What elements do you need to do those things mentioned above? What relationships will focus the right resources towards making the biggest success in those areas? What capabilities and capacities in your organization do you have to fulfill the roles needed?

In short, let function define form, not the other way around. Otherwise, you'll always have a hammer when you really need a screwdriver, clamp, or drill.

No comments:

Post a Comment