In Praise of Organization Design

Organization and structure have often been criticized over the years. Words like bureaucracy, inefficiency, and waste are commonly used, and dealing with organization structure is often viewed as a necessary evil that must be tackled before focusing on the core work of the business. The reality, however, can be quite different.

The organization structure forms the foundation of work systems in any business. It provides the basis for assigning roles and acts as a mechanism for distributing accountability and authority to ensure tasks are completed. Accountability and authority for tasks are delegated from the top levels to roles throughout the organization.

When implemented effectively, the structure acts as an organizing tool, providing logic and clarity to the work of hundreds or even thousands of people. It offers a map showing how tasks are arranged. Titles reflect the nature, level, and complexity of the work, and managers ensure the proper interactions happen to complete it. 

For the CEO or the most senior leader, organization design is the tool that helps establish the conditions necessary to deliver the strategy and create value at every level. It aids in managing complexity; it defines the boundaries within which to attract, support, and develop talent; it acts as a lever to enhance speed and reliability and to drive growth and innovation. Therefore, getting it right is vital to the organization’s success. 

Effective organization design removes guesswork in building a successful business. It acts as a lever to ensure the business delivers on its strategy. For employees, it defines roles with clear responsibilities, offering engaging, challenging work and opportunities for growth and advancement. For shareholders, it mitigates risk by establishing a dependable management system that can perform as promised. 

Doing it right will ensure you get the results you want. When you don’t have to deal with organizational issues, you can focus on growing your business and delivering the business plan.