As you start or grow your business sooner or later you will employ people.
Perhaps what started as a micro-business with just you or you and your spouse begins to grow and you need to leverage your time. The tasks that you once divided up between the two of you seamlessly have to be explained to your new staff. You need to draw up “job descriptions” so that everyone knew what they were responsible for, so that you reduced confusion when something might be forgotten. In time this grows in complexity and you need to have different teams looking after different parts of the business.
This can happen with anywhere upwards of three people!
So you start to doodle organisational structures – you know, you at the top, then the people who are in charge of different aspects of the business who report directly to you, then below them the people who work in their sections who report to them.
The problem is, these structure diagrams seem so straight-forward, but are they organised so you get work done – or are they organised so that the focus of all your work is towards your mission?
There’s a saying in management consulting – “strategy creates structure”.
This means that in order to work out the optimal structure for your business, you need to make sure that the structure is created by your strategy. Otherwise “structure forces strategy”, or in other words your strategies start to be formulated in accordance with what your structure implies. For example if you had a structure that included a design team separate from a construction team, that structure may force a strategy upon you that says you will only make what has been designed. If on the other hand if strategy created structure, you may find that you start with the best strategy – to make products that are designed by people in and outside your business. Then you design your structure that either does away with a design team or incorporates them into a “build and design team” thereby increasing innovation and flexibility.
So, how do you create an organisation structure that is mission-oriented?
Get over to the website after you have watched the video and start the conversation. What does your organisation structure look like? Is it mission-oriented or do you find that the structure itself changes the mission?
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