“So that’s what is going on…” The tool that enables you to assess your organization's efficacy at a glance.

Accurate data is critical for decision-making. We rely on accurate financial and operational data to run our businesses, and if the data is questionable, it can create mayhem. When it comes to organizational health data, we look at employee engagement surveys and similar tools to give an idea of the current climate within the organization. When the material is shared, discussions begin with executives and experts taking their best guess at the root cause of what we are seeing. We interpret, theorize, and generally accept that organizational data does not give us a crystal-clear picture of the organization's state. 

Earlier this year, I discussed levels of work in organizations, as well as jam-ups and gaps, which are symptoms of structural issues. When applied on an organization-wide basis, these simple concepts paint a picture of your organization's efficacy.

As a fresher: a jam-up occurs when a manager and a direct report work at the same level of complexity. When jam-ups are built into the organization, the focus shifts inward and downward, with leaders becoming overly involved in operational issues. Interdepartmental problem-solving and conflict resolution take up much of management’s time. A gap occurs when a manager is too distant from or too different from a direct report’s work. In these situations, a level of work is missing. Gaps typically manifest in two ways: either the top role gets pulled into the details and does the missing work instead of their own, or the missing work remains undone.

The tool we use to show jam-ups and gaps at an organizational level is called a depth chart. Rather than focusing on individual relationships, a depth chart uses the company’s organization chart, with levels of work incorporated into it, to show where jam-ups and gaps occur. It provides a picture of where and how the organization structure is misaligned. In the sample depth chart above, the red lines show separation between work levels, green boxes indicate gaps, and blue boxes indicate jam-ups.

This sample depth chart illustrates how the Information Technology department of a large Canadian business that had suffered a near-catastrophic systems failure was operating. A new CIO was brought in to right the ship, and I was engaged to determine the root cause of the problem. The depth chart shows the structure prior to the new CIO’s arrival. It reveals that the former CIO was operating 2 levels below the job requires (a gap) while compressing the work of direct reports. The company’s CEO operates at LW5, so ideally direct reports should operate one level below at LW4, performing general management work. However, the CIO and his direct reports were all operating at LW2, the level of frontline management, and were engaged in operational work at the same level as his direct reports (a jam-up). Not shown in this example are the front line managers who added another layer at LW2. The new CIO, familiar with work levels and depth charts, came into the conference room where the depth chart was posted, took one look, and exclaimed, “So that’s what’s going on!” He had reliable information about the structural issues within his department and was able to understand them “at a glance.”

This tangible information was used to redesign the IT function, moving the CIO role to LW4 and the Director roles to LW3, eliminating both the gap and the jam-ups and correcting the operational issues the company was facing. Applying organization design principles and tools in the design process enables designers to use reliable information to create an organization structure that management can rely on to deliver the strategy and business plan.

 If you would like to learn more about designing organizations for success, I’m excited to share that my new book, STRUCTURE THAT WORKS: The CEO’s Practical Guide to Organization Design, is now published and available on Amazon or go to www.structurethatworks.com.