Creating an effective organizational structure is essential for any business to succeed. It allows you to control processes, assign responsibilities, and respond quickly to opportunities and threats. To design a successful organizational structure for your small business, you need to analyze the work that needs to be done and establish a hierarchy that ensures that work flows smoothly from one process to another. Begin by defining who you are, what structure you currently operate in, and where your company should head next.
Then, continuously reevaluate your workflow to align it with your purpose and corporate values. For instance, if your purpose is about empowerment but your organization chart doesn't allow for empowering your team members, there's a mismatch that needs to be addressed. There are eight types of organizational structures: traditional linear, functional, hierarchical, team-based, project-based, matrix, networked and virtual. Each of these structures has its own advantages and disadvantages.
For example, a food conglomerate can use a division structure so that each of its food and product lines can have total autonomy. If you can develop a corporate structure that embodies your purpose and values based on the advice above, you will prepare your company to operate effectively and efficiently with the fuel of passion burning all over it.
