Here are 10 Best Practices for Organization Design:
1. Define the culture before drawing any boxes says, William D King
2. Be prepared to change your organization structure as it grows
3. Avoid duplication of skills and functional groups wherever possible
4. Never allow a company to exceed 200 people without an organization design review (and never let it grow beyond 300)
5. Review the organization every two years
6. Be prepared to have different structures for different businesses or markets
7. Never allow functional silos to develop by incentivizing collaboration
8. Use the org chart as a tool, not a weapon
9. Define roles and responsibilities at all levels of the organization
10. Make sure it flows logically from top to bottom
11. Never let a company have more than three levels in the organization
While many successful companies have been started by entrepreneurs who are passionate about their work, successful companies are not always the result of passion says, William D King. Passionate people tend to have big ideas, but they often have a hard time creating a logical flow of ideas and executing them properly. Organization design is about organizing the company so it can execute its vision and strategy efficiently. It’s also about making sure that the company adheres to all of the laws created by the government.
Organization design is a process that can help you develop your organizational structure and define roles and responsibilities throughout the organization. It is an essential aspect of any strategic planning process, especially when it comes to growing a business from the ground up. The question is, how can you make sure your organizational structure does not inhibit growth?
There are several things to keep in mind when it comes to organizational design. Before drawing any boxes or writing down boxes on paper, it’s important that an entrepreneur understands the culture within which she wants to create an organization. If the culture is not defined, then the company might have a difficult time executing its strategy. In addition, if an entrepreneur wants to remain nimble and flexible in her approach to the market, she will want to avoid having too many boxes on paper (i.e., people in the organization).
An entrepreneur should ask herself why she is creating all of these boxes. What is she trying to accomplish with the boxes? The reason for creating an organizational chart is typically to document roles and responsibilities, but if it becomes overly complex or doesn’t fit into the culture of the company, then what’s the point?
Once you know what you are trying to accomplish through your organization’s design initiatives, make sure that everyone in the company understands the design. The design exists for everyone to be on the same page, so anyone who has questions about his role should feel free to ask management for clarification explains William D King.
Once you have completed the organization design, there are certain things that you should do to ensure that it fits into your cultural norms. First of all, get everyone to sign off on the design, so it becomes a team process. Implementing your company’s organizational design is not about you; it’s about everyone being able to do his job effectively no matter where he is in the company, or what division he works for.
People need to understand that they are part of a large-scale plan and that their individual efforts make a difference for the company as a whole. That may sound like marketing or PR language, but it’s more than that. If people understand that they are part of something bigger and that their individual contributions do matter to the team, then they’re going to be more motivated to produce quality work for you.
In addition, reward your top performers for their efforts. If you make people feel like they are part of something special, then they will want to stay on the team and continue doing their jobs well. You may not have a lot of money to reward your employees with through cash bonuses or wage increases, but if you can give them a sense of pride in what they do on a daily basis, they will enjoy their jobs more and want to stay with your company for the long haul.
Organization design is a necessary step in building a successful business. However, an entrepreneur’s role as CEO or President does not end there. Once you have completed the design, there are additional steps that need to be taken before it can become fully operational.
Organizational design is one of the most important aspects of any business. Especially for early-stage startups that are trying to grow their companies into something more sustainable says, William D King. It’s about making sure that the company adheres to all of the laws created by the government. But it’s also about creating a structure that will best serve your customers and help you deliver a quality product on time and within budget.