The Importance of Organization Structure

The importance of organization structure

Businesses operate to serve markets, deliver profits and create value for shareholders.

To accomplish these objectives, the business’s organization structure must support the delivery of the strategy. All parts must be in synch, working well together, and the common denominator must be having the right people in the right jobs doing the right work. 

Poor organization design gets in the way of creating this value.  When the organization is not working well you may not be able to see how the organization is broken but you can see the symptoms: 

• Poor strategy
• Inability to innovate
• Sluggish execution and missed deadlines
• Poor performance
• High costs
• Missed opportunities
• Slow growth
• High turnover and low engagement

In some or all of these ways, the organization structure is not supporting what it needs to when it needs to, and competition is gaining or pulling ahead. The list goes on and on, but the bottom line is that when your structure is not aligned to support effective and efficient strategy delivery, your bottom line isn’t what it could be.

Strategic organization design and structure are the levers that ensure work is properly aligned and can occur in a reliable fashion. For an organization’s senior leadership strategic organization design and implementation is the toolset that removes the guesswork and enables you to reliability set up an organization to deliver on its mandate. 

The impact of good organization design can be seen in how the business operates and the results it achieves:

• Increased velocity for strategy delivery, business plan achievement & profitable growth
• Renewed focus on core competencies, revenue-generating activities
• Cost reduction and improved productivity incorporated into every role
• Talent development and retention as the way we do business
• Increased capacity to focus on innovation at every level to create growth and ensure a positive impact on current and future value for shareholders.

Core International Inc., and Organization Structure

We work with clients to develop organizational structures that support and enable the strategic outputs they need to be successful. In the case study below we highlight how poor organization design was interfering with an organization’s ability to innovate to remain competitive in their market.

This global company, founded in Canada, had captured a dominant share of its domestic market and was poised to expand its US operations. The new strategy called for a more customer, market, orientation in order to better execute its strategic plan and unlock additional shareholder value.

Click here to see how we helped this organization accomplish its goals through organization redesign….

If your business is underperforming, struggling to deliver on its strategic objectives or even day-to-day operational priorities, you may need to look to structure as a root cause of the issues you are experiencing.