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| Improve Your Organizational Structure |
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| Re-engineer Your Organizational Strucure
One of the best reasons for acting early on your turnaround plan is that you'll have a better chance of keeping your best and brightest - and give them room to grow as the business recovers. This is a chance to get rid of unnecessary job roles and put the right people in the right positions, more flexible and better equipped to act quicker.
The sad, but necessary, outcome of reorganizations is that the mix of people you work with each day must change. It's often a relief to lose disgruntled and underperforming employees, but it gets tough when good employees can no longer take the stress or uncertainty that comes to a failing business. If you wait too long, you lose control over which employees will stay and which will go - you'll risk losing the best and keeping the worst just to keep the doors open.
Flat Structures: A good reorganization plan will include a flattened organizational structure with greater focus on customers, fewer layers of reporting, more direct control, better communication, less supervision and lower staffing expense.
Matrix Structure: When a flat structure is inadequate to meet all of the organization's needs, implement a matrix structure. A matrix unit acts like a committee, task force or project team that draws talent from several departments and can be assembled to perform a specific project and then disbanded once its purpose has been fulfilled.
Creating a flattened structure requires a shift from goal-driven management to include regularly checking the work of subordinate units or employees. Closer to the internal action, owners and senior managers will spend more time working inside the business, but will see greater opportunities for the company as well. The resulting tendency to make near-sighted decisions can be offset by your work with a CrownWatermark Business Consultant or with greater use of an advisory board.
Call us at 253-279-4067 for your FREE consultation on organizational re-engineering for small businesses.
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