Every organization has a structure, whether intended or not. “Organizational structure” refers to the hierarchy of leadership and roles within an organization. It determines how power and responsibilities are assigned, controlled, and coordinated. It governs employee tasks, reporting, interactions, and how the information will flow. It has a significant impact on company operations and on the customer experience. The central activating element is that of relationships. As Harold S. Geneen, former President of the ITT Corporation said, “Every company has two organizational structures. The formal one is written on the charts; the other is the everyday relationship of the men and women in the organization.”

How to Improve Your Organizational Structure

Organizational structure binds people together and gives them guidelines for how to work. A well-thought-out and balanced structure lead to success. As English writer Arthur Phelps said, “In a balanced organization working towards a common objective, there is a success.”

There are three factors to consider as you review your organizational structure:

First, what is the long-term vision of your business? What are its purpose and major goals?

Second, who are your customers, and what have you promised (or want to promise) them?

Third, based on the competitive framework, what do you have to do better than your customers to deliver on your promises and meet your goals?

Use these tips to improve your organizational structure:    

  • Address your business needs and issues. What is the best way to get work done? If there are underlying business problems, fix those first. 
  • Make sure that your hierarchy fits with your company’s purpose, objectives, and goals. 
  • Build on what is already working. 
  • Leverage the strength of your top talent. 
  • Build ownership and accountability at all levels of the organization. 
  • Clearly communicate your intentions and then listen carefully to feedback. 
  • Build open boundaries so that employees can flourish. 
  • Build trust among all stakeholders.  

Seek Expert Financial Assistance

Contact Lionheart Commercial Capital, based in Westfield, IN for expert financing solutions. We provide the financing that you need, when you need it, to help you meet your business goals.