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  • 7 questions to ask when developing your organisational structure

    Posted by
    Dan Egerton on the 19 Jun 2012, 14:06

    Businesses are dynamic systems and like all systems they work best when their components are aligned and work smoothly together.

    For many businesses organic growth, opportunistic client wins and the necessary focus on clients often results in an organisational structure of convenience rather then a structure which is optimised to deliver effectively. Therefore, it is important to take the time to objectively review the structure and identify whether it remains fit for purpose or if changes are needed.

    When looking to develop your organisation's structure it may be helpful to ask yourself the following questions:

    1. Does this help me achieve my vision? - By regularly referring back to your business vision and mission statement you will be able to make sure that you are being consistent in the changes being made and confident that they are going to get you a step closer to achieving your vision.

    2. What is best for the business? - A useful exercise is to review your structure around what the business needs rather than who's in it.

    3. Does this align with the culture and values of the business? - While sometimes change just need to happen, it will make on boarding easier if it's consistent with what the business stands for.

    4. What do my clients want? - If you consider how your clients buy from you and their journey through the business then you will be helping your clients clearly understand the business and make sure you are providing for their needs.

    5. What type of service do I want to deliver? - Build your organisational structure around the type of service you are planning to deliver. If you deliver multiple services think about how they can be structured to work smoothly together.

    6. Is my structure helping me deliver more profitability? - Make sure your structure allows for the efficiently delivery of your services, with the right level of resourcing to maintain good margins.

    7. Would I be able to scale the business quickly? - Your structure would need to allow for rapid growth if you were to win a new client or develop a new service offering. It would also need to be resilient enough to stand up under pressure.

    Any changes that need to be made must either be aligned to fit with the existing business systems or the systems will need to be modified to accept the changes, for example your HR processes. Therefore take the time to carefully plan any changes to minimise disruption. By going through a systematic process, the logic behind the changes will be clearer, make it much easier to move to the new structure while keeping up with the day to day running of the business.

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