Organisation structures have always followed business strategy for decades. As a practicing manager, I have had numerous success and failures on this important aspect of leadership. This is also the most passionately discussed topic in boardrooms.
In this article, I have penned down certain principles which will be tested as we move ahead and create enterprises of the future.
The Customer-First Approach
Organisation structures will need to be customer-centric right from the start. The top most box belongs to key customers and growing them along with an addition of new customers defines the new Organisation Structure. So populating this BU-wise, function-wise and fulfilling it with conventional C-level has no meaning if the key customers do not relate with it— in terms of relationship and business impact. So creating the organisation structure in consultation with key customers will be key in the future.
Working from the Outside-In
Organisation structures will need to have an outside-in approach. The primary task is to fulfil business objectives. We need to disrupt the thinking of legacy inside-out drawn Organisation Structure with outside-in which is relevant for the entire stakeholder community.
Moving the CEO from the Top to Centre
The CEO no longer would sit at the top of the Organisation Structure but must actually be at the centre. The entire first and second level organisation should be drawn as circles around the CEO which are spheres of influence. CEO is not a manager, but an influencer and should be able to emit energy influences which makes it a people-centric organisation.
Identifying Modern Horizontals
Culture, Digital and Innovation are emerging as strong horizontals in modern Organisation structures. The conventional vertical Structure comprising of just Business and Functions is getting challenged and displaced faster than we can imagine.
Job Descriptions are Passé
The boxes in the Organisation Structures are not roles or career stations anymore. They are experience USP’s. It is the challenge and experience that defines each of the box rather than the conventional Job Description.
Lastly, the last principle is, it should not have manager of leaders in any of the box as a span approach. Each of the box needs to be distinct and clear to deliver the business, customer and value proposition represented in a simple manner, easy to understand and apply for effectiveness