The organizational structure is the main tool that ensures the distribution of areas of responsibility in the team and the organization of effective interaction between employees.
Untimely development of the organizational structure leads to a number of problems, one of which is the “hybridity” of employees — a situation when the same employee is involved in a large number of heterogeneous processes (for example, simultaneously involved in sales, logistics, purchasing, etc.). As the business grows, this leads to loss of employee productivity due to lack of focus, failures in operational processes, as well as over-reliance on specific employees who become extremely difficult to replace. In addition, it becomes increasingly difficult to scale the company, and the business owner is drawn deeper and deeper into operational processes and internal crisis management.
The optimal way to build an organizational structure is to build a future organizational structure for a larger business scale and gradually decompose this structure to the current size of the company.
In addition to building the structure itself, it is extremely important to qualitatively describe the area of responsibility and expected results of the work of each employee. It is worth noting here that classic generally accepted job descriptions carry rather weak managerial value, since they are usually written rather vaguely and employees almost never refer to them. As part of Kirill Kunitsky’s methodology, we use job cards, which include a highly structured methodology for describing the expected results of employees’ work, on the basis of which a rhythm of regular feedback between managers and employees is launched.
Further, to regulate the interaction between employees, business processes are described (BPMN is most often used).
The “internal client principle” is also being introduced, thanks to which the relationship between responsibility centers in the structure is set up in the “internal client – internal contractor” format. This principle significantly improves the quality and culture of internal interaction in the team.
When systematizing a company, we always pay great attention to the organizational structure, since this is an area where business owners, in most cases, find it difficult to independently find an effective solution and external expert assistance is extremely useful.