We work with businesses everyday to help them develop an organisational structure that will drive productivity, enable effective decision making, will empower teams and give clear lines of accountability. In our view, there is no right answer when it comes to structuring your business or department - it comes down to your objectives, the capability of your leaders and the strength of your team. One principle we do believe in though, is that the flatter your structure, the better. Here are 3 reasons why:
1. Improved Decision Making. A flatter structure will give your teams of capable, high performing people who are close to the detail of the work and understand what needs to be improved, much greater access to decision makers. This means that decisions can be made quicker and will enable your business to respond & change effectively, sooner. Too many levels of management, means multiple sign off processes and a slowness that will gradually stop talented individuals from presenting new ideas and ways of doing things which will give your competitors the upper hand and kill your business.
2. Empowered Teams. Google believe that a manager should have no-fewer than 7 direct reports so who are we to disagree? Our research shows that the best performing leaders have teams of between 6 and 11. The variation will depend on the type of role they're doing and the level of complexity involved. Having spans of control like this will result in your teams being more empowered and able to make critical decisions in a timely way simply because their line manager won't have time to micro-manage them. In our view, if you have empowered teams you have high engagement and great performance.
3. Well-Informed Senior Leaders. With flatter structures your leaders are closer to the action and are able to see what is really going on. They can also work directly with those involved in day to day delivery more effectively and make better decisions. There's nothing worse than a leader not being informed on the key things they need to know in order to make the right decision.
Agree? If you're currently considering how your business is structured and want to know more about how we work, our principles and how we can help you generate great performance through an efficient organisational structure, then get in touch today!