Where can you start?
Posted: Tue Jan 07, 2025 9:13 am
Decide why you need to switch to a divisional structure. Are there any problems that can be solved? Such problems may include low decision-making speed, bureaucratic processes, low responsibility and autonomy of managers, employee burnout, insufficient quality of customer service, and others.
A divisional structure is not suitable for every company. What matters is not the size of the business, but the external environment and the willingness of top management to interact with it. If the environment is static, a traditional structure may be more effective. But for a changing market, such a flexible structure allows for rapid scaling and adaptation to changes.
Consider the risks, too: A divisional structure can create albania telegram duplication of administrative and operational functions, which can increase overall costs. There can be communication problems between divisions, silos, and destructive competition. And people may have a hard time accepting change, especially if it is introduced abruptly.
How we changed the company structure
It became clear that the scheme needed to be changed. Together with the consultant, we decided to visualize business processes and think about how to make them more efficient.
We tried using different frameworks (e.g. harmony desk), took knowledge from Goldratt's theory of constraints, looked at structures from the point of view of social graphs. I had hypotheses on the reorganization, and the consultant shared information, acted as a filter, and discussed our ideas with the team.
High-level organizational chart
One of the first schemes for reworking the company's organizational structure
Even before the divisions were created, we implemented an end-to-end management system in Trello to make processes more transparent. In the summer of 2021, we held a strategic session with the team: we discussed the purpose of each role, who is the resource supplier, internal customer, etc.
We built a social graph of the company to see who depends on whom. This helped synchronize people around a common vision.
Option for dividing into divisions
A divisional structure is not suitable for every company. What matters is not the size of the business, but the external environment and the willingness of top management to interact with it. If the environment is static, a traditional structure may be more effective. But for a changing market, such a flexible structure allows for rapid scaling and adaptation to changes.
Consider the risks, too: A divisional structure can create albania telegram duplication of administrative and operational functions, which can increase overall costs. There can be communication problems between divisions, silos, and destructive competition. And people may have a hard time accepting change, especially if it is introduced abruptly.
How we changed the company structure
It became clear that the scheme needed to be changed. Together with the consultant, we decided to visualize business processes and think about how to make them more efficient.
We tried using different frameworks (e.g. harmony desk), took knowledge from Goldratt's theory of constraints, looked at structures from the point of view of social graphs. I had hypotheses on the reorganization, and the consultant shared information, acted as a filter, and discussed our ideas with the team.
High-level organizational chart
One of the first schemes for reworking the company's organizational structure
Even before the divisions were created, we implemented an end-to-end management system in Trello to make processes more transparent. In the summer of 2021, we held a strategic session with the team: we discussed the purpose of each role, who is the resource supplier, internal customer, etc.
We built a social graph of the company to see who depends on whom. This helped synchronize people around a common vision.
Option for dividing into divisions