The organizational structure of a business has a tremendous effect on its productivity, workflow, and internal and external communication. A company whose organizational structure does not change in response to changing needs and requirements will always lag behind its competition.

On the Cerius Blog, David Shaffer covered Defining the Best Organizational Structure for Your Business. In the article, he reviews key areas to monitor to ensure your organizational structure is keeping up with the change in environment and people.

Stressing the importance of change, he narrates a tale from his experience,

During a meeting with a client, the CEO remarked that life was much simpler when the firm was small and control was always through his office. He knew everyone, was involved in every decision and customers could count on him. With rapid growth in sales, much of this began to fade and there was a feeling that the infrastructure was growing faster than revenue. Certainly it was great to know that the top line was growing, but the expense was too great in quality, direct costs and ultimately, customer service.

By establishing a TOM and turning his attention to aligning and establishing the most effective infrastructure, his firm returned to the attributes that made him successful. On the surface it may seem tedious and frustrating to step back and follow the process, particularly when there is a feeling of stress associated with the symptoms outlined in this client’s story. However, taking the time, laying out the strategy and closing the gaps will pay extreme dividends in the long run.

A misaligned organization can result in declining customer service, quality, profitability and employee satisfaction levels. It can destroy a company’s growth trend no matter how much potential exists for the business.

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