Archives August 2023

Why Organizational Design is Vital for Businesses with Under 100 Employees

As the owner of a business employing less than 100 people, you are likely well aware that an effective organizational design is a significant factor for success. This article delves into how a thoughtfully designed organizational structure can enhance your company’s efficiency, productivity, and profitability.

Boosting Efficiency

Are you struggling to get the most out of your team or finding it hard to keep up with competitors due to inefficiencies? 

Efficiency ranks among the highest benefits of a well-planned organizational design, particularly for businesses with fewer than 100 employees. A carefully structured organization can maximize the use of resources and achieve more in less time. This level of efficiency can bolster productivity – a critical element for any small business intending to thrive in today’s competitive landscape.

Clarifying Roles and Responsibilities

Are you tired of witnessing miscommunication, redundancy, and frustration in your team due to unclear roles and responsibilities? 

A well-defined organizational structure ensures each team member knows their role and responsibilities, fostering a smoother, more collaborative working environment. This clarity eliminates the confusion that can arise when roles are ambiguous or overlap, leading to duplication of efforts or important tasks falling through the cracks. Moreover, when employees understand their individual responsibilities and how they fit into the larger picture, they are more likely to take ownership of their tasks, leading to higher levels of job satisfaction. Finally, clear roles and responsibilities can also make it easier to identify skill gaps, training needs, and opportunities for employee growth and development, which can further enhance productivity and team morale.

Enhancing Communication

Are you feeling frustrated with the constant communication breakdowns in your company, affecting productivity and customer satisfaction? 

An effective organizational design can also significantly improve communication within your company. A well-structured system encourages easy collaboration and idea-sharing among team members. Clear lines of communication mean everyone can easily understand progress and contribute effectively to decision-making. A defined chain of command reduces misunderstandings across departments, speeding up response times and improving overall customer service.

Fostering Focus and Organization

Are you overwhelmed with managing tasks in your small business, struggling to determine who should take on what, leading to confusion and lethargy among your employees? 

For businesses with fewer than 100 employees, organizational design can bring much-needed focus and structure. A well-designed plan spells out who is responsible for each task, removing guesswork and allowing for more efficient allocation of tasks. This clear delineation of duties reduces confusion in the workplace, keeping employees motivated by letting them know their contributions are seen and valued.

Promoting Agile Change Management and Competitive Edge

Are you feeling stifled by your current organizational structure, finding it difficult to adapt to market shifts or customer demands rapidly? 

Having an effective organizational structure can provide smaller businesses with the agility needed for efficient change management and competitive positioning. A systematic approach to reorganizing operations allows for quick adjustments to strategies or processes to meet customer needs or gain a competitive edge in the marketplace. It ensures stability within your organization amid any external changes or market fluctuations.

In conclusion, a well-designed organizational structure is vital for businesses with fewer than 100 employees seeking an edge in efficiency, team collaboration, customer service quality, and agile change management. When executed correctly, it can catalyze your business to reach its full potential and create an environment where every team member feels their contributions are making a difference. Take the time to invest in effective organizational design – you’ll find that the rewards are well worth the effort. Connect with us for a complimentary discovery call.

Some Books to Read on Organizational Design

  1. “Organization Design: Simplifying Complex Systems” by Nicolay Worren: A comprehensive guide to understanding the complexity of organizational design in the modern business environment.
  2. “Designing Your Organization: Using the Star Model to Solve Five Critical Design Challenges” by Amy Kates and Jay R. Galbraith: This book provides a practical approach to organization design with a focus on the ‘Star Model’ framework.
  3. “Organizational Design: A Step-by-Step Approach” by Richard M. Burton, Børge Obel, and Gerardine DeSanctis: This book offers a step-by-step approach to organizational design with a focus on designing and managing organizations as dynamic systems.
  4. “Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness” by Frederic Laloux: Laloux presents new models for organizations that align with more evolved stages of human consciousness.

Helpful Articles to Read:

  1. “The 5 Classic Mistakes in Organizational Structure: Or, How to Design Your Organization the Right Way” Organizational Physics
  2. “10 Principles of Organization Design” from Strategy+Business
  3. “The Importance of Organizational Design” Harvard Business Review
  4. “Organizational Design: The Rise of Teams”, Deloitte Insights (2016): This article discusses the shift towards team-centric organizational designs, highlighting the benefits of this structure.
Play Big with Organizational Design

Next month, WWC is taking on an office at Formation – the workspace at The Star: The Dallas Cowboys practice field. This is a dream office for us. But it is also so perfect for what we do. We create winning teams through expert organizational design.

What is Organizational Design?

Think of your organization like a winning football team with players, co-captains, and you as the head coach.

Employees

Your employees are the players, each one playing a specific position like quarterback or linebacker. These positions equate to specific roles and responsibilities within the organization. Each player has their own skill set and tasks to perform – just like employees have specific tasks based on their job description.

Middle Managers

Your middle managers are your co-captains. They’re responsible for coordinating the players on the field, ensuring that plays are executed correctly, and reporting back to the coach. They translate your strategies into actionable plays.

CEO

As the CEO, you are the head coach. You map out the strategy and the plays you want to run on the field. You decide who gets to be in the starting lineup and how to use your resources. Your staff of defensive and offensive coordinators, they’re your upper management, helping you develop strategies and make decisions.

Think of your Business Plan as your Playbook.

Your playbook is your business plan. It outlines your strategies, tactics, and plays. Each player needs to understand it, know their part in the plays, and how they contribute to the overall game strategy.

Internal communication is like the signals and calls made on the field. It needs to be clear and precise, so every player knows their role in the next play. Miscommunication can result in mistakes, lost yardage, or even turnovers. Think about your business. How many times has miscommunication led to delays, lost revenue, or missed opportunities?

Culture = Team Spirit

The culture of your football team is akin to the culture in your organization. It’s the “team spirit,” the unwritten rules and attitudes that define how your team – your employees – acts and responds. Whether it’s a winning mentality or a never-give-up attitude, this culture drives how your team performs on the field and in the market.

Rewards and Consequences

And finally, the disciplinary actions, bonuses, contracts, and the trades – these are your systems of rewards and consequences. They’re what you use to ensure players stay motivated, perform their best, and maintain discipline.

Get the right team design, and you’ll have a Super Bowl-winning team. Get it wrong, and you’re languishing in the basement of your division. (No jokes about the Cowboys here – we are on the Quest for Six)! Organizational design is no different.

The Nuts and Bolts

Organizational design is a thoughtful and strategic framework that relies on several key elements:

  1. Organizational Structure: This is the backbone of your organization defining the hierarchy and layers of management. It establishes clear lines of reporting and communication, ensuring everyone knows their role and responsibilities.
  2. Work Specialization: Each individual in an organization brings their unique skills and expertise. This element of organizational design allows for each person to utilize these skills in a specific role, which empowers them to do what they do best and contribute meaningfully to the organization.
  3. Departmentalization: This is the process of grouping individuals and roles into functional units or departments. This enables better coordination, fosters teamwork, and promotes a sense of belonging amongst individuals who share common tasks and objectives.
  4. Centralization and Decentralization: This aspect pertains to decision-making authority. Centralization puts decision-making power at the top, while decentralization disperses it throughout the organization. Both have their merits and the choice depends on the nature and needs of the organization.
  5. Span of Control: This refers to the number of employees that a manager can effectively supervise. It’s about balancing the workload and ensuring that each team member receives the right amount of guidance and support.
  6. Coordination and Integration: This involves orchestrating all the moving parts in your organization to work in harmony. This ensures smooth cooperation between departments and individuals, enabling them to work towards a common goal.
  7. Rewards and Penalties: In order to motivate and engage your workforce, institute a fair system of recognition and accountability. It’s all about rewarding good performance and addressing any issues in a constructive manner.
  8. Organizational Culture: This is the spirit of your organization. It’s the shared beliefs, values, and norms that shape how your team members interact and behave. A healthy, positive culture inspires loyalty, drives engagement, and promotes productivity.

At its core, organizational design is about creating an environment where each member of the team can thrive and contribute to the overall success of the organization. Want to talk through your game plan? Connect with us for a complimentary discovery call.

Some Books to Read on Organizational Design

  1. “Organization Design: Simplifying Complex Systems” by Nicolay Worren: A comprehensive guide to understanding the complexity of organizational design in the modern business environment.
  2. “Designing Your Organization: Using the Star Model to Solve Five Critical Design Challenges” by Amy Kates and Jay R. Galbraith: This book provides a practical approach to organization design with a focus on the ‘Star Model’ framework.
  3. “Organizational Design: A Step-by-Step Approach” by Richard M. Burton, Børge Obel, and Gerardine DeSanctis: This book offers a step-by-step approach to organizational design with a focus on designing and managing organizations as dynamic systems.
  4. “Reinventing Organizations: A Guide to Creating Organizations Inspired by the Next Stage of Human Consciousness” by Frederic Laloux: Laloux presents new models for organizations that align with more evolved stages of human consciousness.

Helpful Articles to Read:

  1. “The 5 Classic Mistakes in Organizational Structure: Or, How to Design Your Organization the Right Way” Organizational Physics
  2. “10 Principles of Organization Design” from Strategy+Business
  3. “The Importance of Organizational Design” Harvard Business Review
  4. “Organizational Design: The Rise of Teams”, Deloitte Insights (2016): This article discusses the shift towards team-centric organizational designs, highlighting the benefits of this structure.
How Employee Success Drives Profitability: A COO’s Guide to Organizational Design and Performance Enablement

COOs must enable continuous innovation to uphold their organization’s competitive edge and profitability via strategic operations. Central to this endeavor is maximizing human resource effectiveness.

So, how do you empower your employees to perform at their peak?

The answer lies in embracing the significance of employee success, and realizing that organizational design and performance enablement are instrumental to your organization’s ability to win.

In this article, we’ll delve into the reasons why COOs should prioritize employee success, how an effective organizational design can bolster performance, and ways to harness performance enablement for maximizing profitability.

Introducing Employee Success

Employee success refers to an employee’s capacity to realize their personal and professional aspirations within the workplace. It comprises various elements like job satisfaction, career progression, productivity, and the aptitude to contribute positively to the company’s vision.

It’s essential to understand that employee success isn’t confined to hitting targets or goals. It also encapsulates the feeling of fulfillment, motivation, and engagement in their tasks, massively amplifying their overall performance.

The pillars of employee success incorporate:

Accomplishment: Employees should be able to successfully finish their tasks and meet their specific job objectives. Recognition and rewards for achievements can boost their motivation and drive.

Growth: Career development and advancement opportunities are essential for employee success. Employees should continually learn and evolve without feeling stuck in their roles.

Satisfaction: Employees should find contentment in their job, which covers the work climate, relationships with peers, and the kind of work they execute.

Well-being: Success is synonymous with happy and healthy employees. Employers must emphasize the well-being of their staff, assuring a harmonious work-life balance, stress management, and a safe, pleasant work environment.

Contribution: The capability to contribute significantly to the organization’s objectives is a crucial indicator of its success. Their work should substantially influence the organization’s mission, values, and objectives.

Engagement: Employee engagement translates to an employee’s emotional commitment to their organization. Highly engaged employees are likely to go above and beyond, driving success in their roles and for the company.

The Importance of Employee Success for COOs

COOs should prioritize employee success for several reasons:

Performance and Productivity: Effective employees are high performers and more productive. They function efficiently and significantly contribute to the organization’s goals and objectives.

Employee Retention: When employees experience success and fulfillment in their roles, they are less likely to leave the company. This lowers turnover expenses and ensures a steady, seasoned workforce.

Business Growth: Successful employees fuel business growth. Their achievements directly enhance the organization’s success. They could bring innovative ideas, raise sales, ensure customer satisfaction, and help the company sustain competitiveness.

Culture and Morale: Success breeds success. When employees feel successful, they tend to be more engaged and content, positively affecting the overall workplace culture and morale and attracting top talent.

Leadership Development: Nurturing employee success helps COOs spot potential leaders in the organization, aiding in succession planning and leadership continuity.

Agility and Adaptability: Successful employees are usually more agile and adaptable, vital skills in today’s high-speed business environment. They effectively manage change and help the organization navigate through opportunities and challenges.

Risk Management: Investing in employee success aids in identifying and mitigating risks. Engaged, committed employees are less likely to cause compliance issues or tarnish the company’s reputation. In essence, advocating for employee success is about safeguarding the organization’s future.

A COO that encourages and cultivates their employees’ success is investing in the company’s long-term stability, growth, and overall success.

The Role of Organizational Design in Employee Success

Organizational design plays a key role in driving employee success. An efficient organizational design can:

  • Ensure employees have clear job expectations and responsibilities, and access to resources they need to succeed.
  • Provide clarity around decision-making processes and help identify superfluous areas or overlaps that can be eradicated for improved efficiency.
  • Promote collaboration and enable employees to work independently and effectively.
  • Strategically position their company for long-term success.

The Role of Performance Enablement

Performance enablement is another crucial aspect of ensuring employee success. It involves equipping employees with the necessary tools, skills, feedback, training, resources, and development opportunities they need to excel in their roles.

This could entail steps such as:

  • Implementing an effective performance management system.
  • Creating mentorship programs.
  • Developing career progression plans.
  • Offering targeted learning opportunities.
  • Utilizing technology.
  • Using analytics to gauge results

When executed properly, performance enablement not only guarantees that employees are successful but also drives higher profitability for the organization as a whole.

As a COO or CHRO, it’s your duty to ensure that your organization values employee success and introduces systems that encourage it. By investing in organizational design initiatives and performance enablement measures, you’ll improve employee satisfaction and lay the groundwork for increased profitability in the future.

Begin your journey of investing in your people and enhancing profitability today! Get in touch with What Works Consultants for a complimentary discovery call.

Read More:

  1. “Drive: The Surprising Truth About What Motivates Us” by Daniel H. Pink: This book provides insights into what truly motivates employees to succeed and perform at their best.
  2. “Work Rules!: Insights from Inside Google That Will Transform How You Live and Lead” by Laszlo Bock: In this book, Google’s former Head of People Operations reveals the secrets of the company’s success in terms of employee satisfaction and engagement.
  3. “The Advantage: Why Organizational Health Trumps Everything Else In Business” by Patrick Lencioni: This book gives insights into how organizational structure and culture can impact business success.
  4. “The Fifth Discipline: The Art & Practice of The Learning Organization” by Peter M. Senge: This book focuses on how companies can develop learning organizations, which is key to employee success and business growth.
  5. “Carrots and Sticks Don’t Work: Build a Culture of Employee Engagement with the Principles of RESPECT” by Paul L. Marciano: This book offers practical strategies for increasing employee engagement and success.
  6. “First, Break All The Rules: What the World’s Greatest Managers Do Differently” – By Marcus Buckingham and Curt Coffman: This book provides insights into management styles that encourage employee success.

Articles:

  1. “The impact of employee engagement on performance” by Harvard Business Review: This article provides a detailed analysis of how employee engagement affects organizational performance.
  2. “Why Happy Employees Are 12% More Productive” published in Fast Company: This article explores the correlation between employee happiness (a factor of employee success) and productivity.
  3. “Building a Game-Changing Talent Strategy” published in Harvard Business Review: This article provides insights into creating an effective talent strategy, focusing heavily on performance enablement.
  4. “Organizational design: The rise of teams” by Deloitte Insights: Insightful article on how organizational design impacts success.