Sorry about the time away from the blog folks, but I\u2019m happy to be back and ready to shift gears.\u00a0 We\u2019re going to focus more on the people side of your business before getting back to processes; starting with structuring your business.<\/p>\n
The right structure will help your business do the right things right.\u00a0 It will free up your people to achieve\u00a0their full potential, and your business to achieve\u00a0its full potential.\u00a0 It will provide\u00a0for performance, management, and direction.\u00a0 It will provide\u00a0for effective communication and motivation.\u00a0 It will directly link your team members to your purpose and strategy.<\/p>\n
Much discussion in administrative theory and organizational behavior revolves around the idea of vertical or flat organizations and the \u201cchain of command\u201d; in other words, many or few management layers, and what is the \u201cright\u201d number of people reporting to one person.\u00a0 There are other important ideas like self-directed work teams and quality circles which may affect the successful achievement of your purpose.<\/p>\n
Keeping this simple, the answer to the question, \u201cWhat is the right organization structure for my business?\u201d is; it\u2019s the one that best suits the nature of your organization\u2019s purpose and the activities necessary to fulfill that purpose.\u00a0 In other words, it\u2019s a \u201cform follows function\u201d approach.\u00a0 You\u2019ve defined your conceptual foundation, developed your strategy, and identified the systems and processes necessary to carry out your purpose.\u00a0 Now you\u2019ll create a form for your organization that supports the essential functions (systems and processes) you\u2019ve identified.<\/p>\n
Think of your organization\u2019s structure much as you would the other systems and processes necessary to achieve your goals.\u00a0 There should be no self-justifying element of the structure; no extra layers of management; no staff members searching for a purpose.\u00a0 There should only be a sufficient number of competent people in the right positions such that through effective interaction, they get the job done without wasted time, effort, and re-work.\u00a0 Seems like common business sense to me.<\/p>\n
From the largest multi-national corporation to the sole proprietorship working out of a home office; all have the same need for structure.\u00a0 The organization needs direction<\/strong> in the form of a mission, vision, values, purpose, strategy, culture and policies; all of which guide people in performing their jobs.\u00a0 The organization needs management<\/strong>\u00a0of its resources, systems, processes, and risks to keep everyone focused on objectives within the constraints imposed by the established direction.\u00a0 And the organization needs performance<\/strong>\u00a0of tasks and activities using appropriate\u00a0behaviors and competencies to accomplish the purpose it is intended to serve.<\/p>\n The key words are direction<\/strong>, management<\/strong>, and performance<\/strong>.\u00a0 In a small business the sole proprietor may be responsible for all three elements of structure.\u00a0 In large organizations direction is handled by a board of directors, management by a leadership team, and performance by the rest of the team.\u00a0 In many organizations using a participative\u00a0approach there is a large amount of crossover between these structure elements, much less so in the autocratic organization.\u00a0 Regardless, these are the essential elements of an organization\u2019s structure; as described by the late Peter Osterio in his seminar on \u201cpractical governance and risk management\u201d.<\/p>\n So be thinking about your organization\u2019s structure in terms of: \u201cForm Follows Function\u201d, Direction (Governance), Management, and Performance until next time, when we\u2019ll fill in some details.<\/p>\n","protected":false},"excerpt":{"rendered":" Sorry about the time away from the blog folks, but I\u2019m happy to be back and ready to shift gears.\u00a0 We\u2019re going to focus more on the people side of your business before getting back to processes; starting with structuring your business. The right structure will help your business do the right things right.\u00a0 It … Continue reading Organizing Your Organization<\/span>