Does your organizational structure work?
By Ron Kaufman
The right organizational structure facilitates superior service, sharing of views, rapid decisions, flexible execution and quick responses to unexpected opportunities or problems.
‘Chain of command’ may be good for a marching army, but it has real limitations for creating new service value in a dynamic global market. Customer expectations can change in a minute. How fast can your company respond?
In the world’s leading consulting companies, project teams come together and disband when each assignment is done. One of the world’s most innovative banks is constantly flexing between centralized and decentralized models. They don’t consider one approach better than the other. Instead, they look for new ways to generate value every time they change!
Some organizations change positions frequently as a way of developing staff and bringing up fresh ideas. The government of Singapore employs this approach with vigor, moving key players into and out of industry, regulatory, administrative and executive positions to develop their skills and grow their careers.
You can organize around customers, industries, product lines, channels, technologies or the major processes in your business. You can take a geographic view and arrange your team by country, language, custom or religion.
Whatever your current structure or approach, keep this fact in mind: the measure of your success is the level of service you provide and the experience your customers receive.
Be sure your structure serves your people to serve your customers well.
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