How to make sure your structure is built for good, not evil.

PART 4: How to make
sure your structure is
built for good, not evil.
How to build a high-performing organization in the 21st century.
All rights reserved PeopleFirm LLC 2014

Strategy aligned? Check.
Fed by your culture?
Check.
Ok then,
let’s talk structure.

Good structure supports and
balances your organization
(instead of controlling it).
…it reinforces and enables
your strategic direction …it creates great jobs to
keep your people engaged
and fulfilled
Culture Structure Work
…it gives your people the
necessary autonomy to get
work done
…it enables efficient
collaboration – the way
you want your people
to work
People
Strategy

In other words, put your
culture and strategy in
place, then make sure
your structure is the
heck out of the way.

Because a good
corporate structure
is like your own
bone structure:
when it’s working
right, you shouldn’t
notice it.

Let’s take a closer
look at what might
make your structure
good or evil.

First, let’s visualize evil.
(and by ‘evil’ we mean that it obstructs you from
achieving your goals and getting things done)

evil : driven by policy.
Your structure is probably working for evil if it’s driven by anything other than your strategy and
culture. All too often, org structure is determined by internal politics, company history, outside
regulations, or even individual personalities (you know, the ‘Jill really likes to manage the art
department, so we need to make sure we keep that role for her’ approach).
This approach leads to a structure that doesn’t support where the company wants to go, or how it
wants to get there. Instead, always, always start with your strategy.

evil : over-engineered.
Less-structured organizations out-perform heavily-engineered organizations. Why? Because the
more complexity you add to your structure, the less agile you are – and being agile is more and
more important in this VUCA (Volatile, Uncertain, Complex, and Ambiguous) world.
How many desks does a
communication have to
cross before it reaches the
front-line staff? Now
imagine that number cut
in half. Better, right? Just
keep it simple.
Heavy going. Just right!

evil : too many witches,
not enough flying monkeys.
When you have an org structure that is like a fancy cake: layer after layer…what do you end up
with? Lots of managers. Even a simple structure can have too many. And too many managers
often means working managers – people who have to manage others while still handling other
duties - which means they aren’t fully focused on either role.
A structure that requires
fewer managers means
you can hire or promote
people who want to
manage and are good at
it – you know, the ones
who really do it right.

evil : too much ‘who’s on
first?’
A good structure requires clarity. Without it people don’t know what their roles are or how
they fit into your strategic plan. It’s a lot like kiddie T-Ball: you’ve got a bunch of frenzied
action… but also a lot of dropped balls, stepped-on toes, general confusion, and very little actual
progress.
Instead, make roles clear, define
expectations, and make who
decides what transparent.
Don’t forget to make sure
everyone knows exactly how
they are helping to reach your
strategic goals.

But it’s not all bad
news! Want to look at
good structure?

good : supports your strategy.
If you’ve been following us, this should come as no surprise: you need to start with your strategy.
What organizational structure will support your strategic goals? What will reflect your culture
best? Always build from strategy up.
Tip: tying your structure back to your strategy and culture will help connect your people to the great thumping-heart
goal (you know, the purpose and meaning) of your company – a sure way to drive engagement and
loyalty in today’s transient workforce.
Want a well-run army? Then
go for hierarchy and layers of
authority. But if you want to be
nimble in order to meet
changing market forces, don’t
make your structure so dang
complicated.

good : enables collaboration.
Build your organization in such a way that collaboration and knowledge sharing are simple and
supported. Improve information flow by flattening your structure (removing layers of
management): the fewer people
an idea has to move through, the
faster it can be implemented.
Or think informal affinity groups. Got
marketing people scattered across
different teams? Help them come
together to share their wins, losses,
and inspirations – and incidentally
increase job satisfaction.

good : drives autonomy.
Rule number one for great performance in today’s world of work? Treat your people like adults.
How? Give them autonomy. This means having a structure that gives your people the freedom to
actually get stuff done.
To do this, make sure you push decision
making to the appropriate level.
Decisions should be made where the
most current and relevant information is
- usually closest to your customer and
your core processes.
Tip: want excellent customer service? Make sure your customer-facing people can make customer-centric
decisions. That’s what we mean by making sure decisions are at the appropriate level.

good : creates great jobs.
Studies have shown that the best way to keep your employees engaged is to create great jobs for
them. And we all know engagement drives organizational performance like nobody’s business. So
don’t build your organization around a slew of meaningless, thankless, and soulless positions.
Instead, ditch the unnecessary. Kill
burdensome processes. And build
roles that meet your strategic need
but also stretch people - at all levels
of the employee career cycle, from
the most experienced to the
freshest-from-school.
Tip: remember, your top performers will need ways to develop in the organization. Provide growth opportunities
that focus on growing their mastery and autonomy, not rank. Need an example? Give that top salesperson a
bigger territory instead of making her a manager.

Let’s recap.
Driven by policy
Over-engineered
Not enough clarity
= =
Creates great jobs
Enables
collaboration
Drives autonomy
Supports your
strategy
Too many
Managers
evil. good.

Tune in next month for PART 5: how to tune your
performance management to make your organization
great.
Got all that? Think you’re
done?
Not so fast: if you don’t
have your people working
with you, you aren't going
to get very far.

your people = your success.
Seattle ∙ Portland ∙ Vancouver, B.C.
www.peoplefirm.com
thanks for reading.

How to make sure your structure is built for good, not evil.

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How to make sure your structure is built for good, not evil.