What organisational structure is right for you?

Imagine taking a blank sheet of paper and redesigning your organisation without limitations or restrictions.

How might you architect your business to deliver your strategic goals? Would your current role-holders retain their responsibilities, or might you really shake things up if you were designing entirely from scratch?

Let's look at what structures you might consider if you start with a clean slate...

Traditional hierarchy models

A pyramid-shaped, top-down reporting line is the classic version of organisational design, which is how most organisations have grown.

Your leaders are considered the experts. They pass down knowledge and supervise the performance of their subordinates to ensure that they meet expectations. This is a simple chain of command.

We know that younger generations do not buy into hierarchy in the same way as days gone by, and they certainly don’t conform to a traditional power dynamic.

This structure says a thing or two about your culture. Simply being at the top or the bottom of the chain of command lends itself to status. Have you instead thought about creating your hierarchy model from left to right, and thinking about how this changes the perception of roles and role-holders?

Matrix structures

Your roles will have multiple reporting lines and obligations in a matrix structure. For example, a talent acquisition specialist may be reporting across divisions or service lines in addition to an HR Director, who will be responsible for aligning them to organisational standards.

This structure offers flexibility, access to shared resources and expertise, and encourages collaboration across the business.

However, matrix structures can have challenges, including confusion around accountability and communication, and in managing and utilising resourcing levels with workload peaks and troughs.

Organic structures

This is probably the least common structure and the bravest option. To visualise an organic structure, imagine a tree with branches and leaves, or bubbles on water. Roles move around to suit the purpose of the goal rather than being fixed in a solid reporting line.

The challenges associated with an organic structure revolve around ultimate decision-making authority and the comfort of the role holder with constant change. But if agility and collaboration are core to your culture, this can break away from a traditional ‘superiority’ model and create cost-effectiveness by reducing the need for middle managers.

How do you choose the best structure?

There isn’t a universal ‘right’ structure, so you’ll be considering the best fit for your organisation and goals.

What serves your strategic plan? Do your employees believe your current structure is working for them? Are your leaders open to change?

So, should you undertake an organisational design project?

You should regularly review your organisational design to ensure that it is fit for purpose. These reviews should align with strategic adjustments to ensure that you can deliver on your goals.

Consider your organisational design when you are looking at your company culture. What does your model say about your business, employees' status, agility and ability to deliver?

Suppose you find yourself simply accepting the design of your organisation because it is too difficult to change. In that case, this is the time to consider a refreshed target operating model and advise your leadership team on the potential benefits of change. After all, your role is to advise on strategies to improve your current position, not to accept it.

We're here to help

Building future-proofed organisations that deliver upon strategic goals, meet our team needs and foster our values can be a competitive differentiator.

If you need support to understand how your organisation can be redesigned to achieve these outcomes, then working with a specialist can aid your thinking, create a compelling business case for change and support the planning and roll-out of a successful restructuring project.

Talk to us about organisational design and how we can support your team.