Redesign Your Organizational Chart: Transforming a Siloed Structure

Redesign Your Organizational Chart: Transforming a Siloed Structure

Businesses are living organisms. Like the skeleton gives form to an organism, the Organization chart defines an organization. Like muscles move the skeleton, culture is the muscle that moves an organization.

Today, many companies are reviewing their organization charts because they are considering layoffs. Yet the strongest firms continually repositioning A-players to growth strategies. Creating a nimble workforce accustomed to new challenges defines a culture where employee exits are a natural by-product, not a headline-capturing event.

Here’s a case study from our work:

Our client's business had a cumbersome, siloed structure. Their muscles grew rigid over years of slow yet consistent growth. When disruption reached their industry, they were slow to adapt. The CEO sought our support with an innovation strategy to bridge the disruption gap; however, the shortfall was their culture that was not enabled to execute.

When analyzing their organizational chart, we saw very little “connective tissue” between functions. For example, the IT department was launching a modernization strategy without sufficiently consulting the effected departments. Accounting was introduced to a new cloud-based reconciliation platform days before month-end close. Compounding this fact was an absence of “team leads” to answer questions from staff using the platform. As a result, the company suffered from employee burnout, continued use of workarounds to meet deadlines, and deepening skepticism around change.

To prevent this error in the future, we recommended to the client:

1. Creating a strategic plan to align the company's north star for continued performance while preparing for future disruptions.
2. Delivering candid feedback about the human, financial, and technological resources needed to achieve these objectives.
3. Determining the role of departments, specifically each employee’s responsibility to achieve the Strategic Plan.

The results of these initiatives included connecting the right human resources and to have the most impact in a dynamic organizational structure. 

At the end of the day;

1. The siloed structures plaguing the company were reframed as a product of the past, not the way forward.
2. The employer did not employ more permanent staff to execute the change portion of the initiatives. New hires were brought into execute the new strategy. 
3. The board of directors can seamlessly measure the performance of each division and its leader. 
4. Leadership can take quick action and reshape their strategic plans in response to innovations in the market.

Do you feel a lack of urgency to take action to address disruptions?? Does your organizational chart prevent the implementation of your strategic plan? Let’s discuss how to redefine your culture to achieve your vision.