What’s the point of an organizational structure? As a business leader, do you even need one?

Every business requires structure to scale and be profitable, else the people will pull in different directions. Getting a structure ready ensures there are enough human resources with the right skills to accomplish the company’s goals, and ensures that responsibilities are clearly defined.

Organizational structure is the framework of an organization. As your company gets bigger, an organizational structure can help teams perform at their full potential while letting employees know who manages what processes at your company. The structure further defines a chain of command, outlines duties, and ensures each job occupies its own position on the company organization chart. Onboarding the right leader is crucial across key business units and while building strong teams.

If you need to pivot or shift your leadership, you can visualize how the work flows would work by adjusting your organizational structure diagrams.

Having a right organizational structure helps in:

– Managing complexities with ease

Organizational structure can be designed to balance complexities and promote the flow of information from employees to managers to take on tough business decisions. This helps determine the location of centers of decision-making in the organisation.

– Facilitating smooth cross-functional collaboration

A proper, well-defined structure facilitates ease amongst the employees / departments to communicate as they would know who to connect with / report to and would have clear lines of communication in mind.

– Boosting speed, efficiency and adaptability

If your organization is structured, it further fuels in improving speed, efficiency and adaptability. Managers can better identify the human resources available to them, evaluate each team member’s capabilities, talent, scope and allocate tasks better. This in turn enables quick completion of project / company goals and improves capacity to handle increased level of activity.

– Driving further growth & expansion

Companies that scale quickly are those who utilize their resources better, including management talent. The right organization structure ensures that the company has the right people in the right positions. It also suggests weak spots or gaps in the company’s current management team and drives continuous evolvements in the organization structure.