Hierarchy organization structures have been with us since the 1800's. It is clear they maintain command and control from the leadership running these types of organizations. Although because of hanging on to this command and control management style they are also slow. It is time to start changing these structures and this presentation describes an organizational structure type that has proven to work.

1.  Robert Baird
President
+1 215 353 0696
The 3rd Component
Organization Structure for
Sustainment
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3. Hierarchy Organizations
• Are they effective enough for todays fast changing markets?
• Is it fear that prevents us from going forward?
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4. Hierarchy organizations started in 1800’s
• Even earlier if you consider the management of ancient slaves
• Remains pervasive for today’s organizations
• Quickly adopted by military as a method to make certain chain of command
• Collaboration is difficult and, for the most part, is not promoted or supported
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5. Hierarchy’s are slower paced
• Because of bureaucracy
• Because of knowledge hoarding
• Because of departmental biases (Silos)
• Because of unwarranted authorizations
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6. Strategy objectives become partisan
• Tenuous connections throughout lower levels
• Silo Effect (biased)
• The effect of message starting from top of organization
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7. Organization layers prevent message penetration
• Message penetration - A key input towards employee engagement
• Mostly “noise” by the time it reaches Value Stream Workers
• Each layer creates wasted time in starting correct improvement actions
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8. Great ideas are generated through collaboration
• Not through individual ideas
• They require a structure conducive to idea germination
• Employees are then able to contribute
• Hierarchy structures thwart idea germination
• Most decisions are made and accepted at the top in Hierarchy organizations
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11. Value Stream Flow
Structure with less layers
• Based on skill and ability (value add)
• Designed for speed
• Based on empowered teams with the process providing articulation
• All functions of the enterprise collaborate and are enabled to
• The main connection and motivation is the achievement of the strategy
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Executive Team
Process Team 1
Process Team 2
Process Team 3
Local Leadership Team
Sales Team
Customer

12. A less layered system
• Simple, supported, and improved throughout, connection maintained
• Executive team determines business strategy (same as Hierarchy)
• Local Leadership is a team of what was Department Managers and the
Location Manager
• Prototype solutions are developed through collaboration with Self-
Directed Teams
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13. Leadership teams – Support, Teach, and Promote
• Visual Management
• Gemba walk with purpose and value
• Build strategy deployment momentum
• We win or lose together
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14. Self-Directed Process Teams
• Defined levels of empowerment
• Defined individual career paths through to Leadership Teams
• Continuously improves value stream
• Responsible for individual development within their teams
• Budget responsibilities
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15. Sales Team
• Partnerships
• Share customer value and knowledge direct to value streams
• Customer involvement within complete product development
process
• Complaint resolution in collaboration with teams
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DIRECT
LESS LAYERSHEIARCHY
COMPASION
SLOW PACE FAST PACE
COMMAND COLLABORATION
DIS-CONNECT CONNECTED
SILO SHARED VISION
KNOWLEDGE CACHE KNOWLEDGE SHARE
COMPLIANCE AUDACIOUS

17. Contact Us
• Lean Teams USA Lean Consulting
• View My Profile on LinkedIn
• Lean Teams USA +1 215 353 0696
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