Getting the right Organizational Structure

An igloo's structure gives it strength
Start with the business model - The business model should answer the following questions: what business am I in? Who are my clients? What are their needs and expectations? What are my services and how do they align with the client needs and expectations? What are my business goals? How do I meet ny goals? How do I measure performance?

Identify capabilities - A business capability is a combination of human performance, business process, and technology/infrastructure elements that collectively represents an organization's ability to create value through a distinct part of its operation. what do I really need to excel at to meet client expectations and performance objectives?

Define the core business processes - Effort and investment should always be targeted at improving the core business processes. What do I need to do to deliver value to clients? What are the critical steps and activities? What are the inputs and outputs? What are the measures and how can I improve the processes? What are the triggers of the activities? How are processes related? What activities or steps are automated? Which require manual intervention?

Structure the organization - The organization should allow effective execution of the processes that drive value to the clients and to the business. What are the tasks, roles and jobs of the workforce? What competencies, skills and attributes are required by the workforce? What size of workforce is needed? What are the reporting relationships? How are business decisions made? What is the optimal structure to deliver value and meet business objectives?

Leverage technology and assets - Technology is a great driver of performance when implemented effectively. What investments are needed? Which tasks can be automated? How can existing technology be maximized?

Integrate the organizational components - In the highly effective organizations, the components work together to produce superior results. Effective organizational components working independently will generate some business results - for instance, new equipment should generate improved productivity. Effective components aligned and integrated to the business strategy multiply the business results. Does the core business process leverage technology and competencies for maximum productivity? Does the work environment maximize the contribution of technology and people in maintaining excellence in core business processes? Is the organization able to innovate and quickly realign to changing business requirements?