9/25/2023 0 Comments Define silo enterprise structureThey waste resources, kill productivity, and jeopardize the achievement of goals.īut beyond that, they extract a considerable human toll too. “Silos – and the turf wars they enable – devastate organizations. Or maybe you agree with business author Patrick Lencioni who writes We now have control over what people are doing, offering them career development and opportunity with the most efficient operation in place. Also, we can make sure everyone is doing their role the same way. If we pull all these people together into the one vertical team we can achieve the same amount of work with less people. We believe that people doing the same function, but in different teams, leads to duplication of effort and underutilization of resources. By having people doing the same role in the same group we can provide development programs for those people and offer career paths either as senior individual contributors or in the management ranks. The second reason is for career development and opportunity. Everyone in each vertical group is now focused on their internally aligned job responsibility. What happens next is that the mission statements, job descriptions, objectives, measurements, reports are written based on the vertical internal function. This thinking is repeated for all of the functions. The logic is, “ if we are responsible for global sales then we must have control over the resources”. That way we can make decisions such as, how many people we need, what are their targets and which sales compensation plan ( which we over-complicate) to put in place. ![]() However, almost always the new structure is based around internal functions such as įor example, if we are the Executive Vice President of Sales we want all the sales people reporting up to our role. For managers it provides guidance to make decisions and help employees implement continuous improvement ideas. It is necessary for people at the coal face to know what is expected of them and provides guidance on a day to day basis. ![]() Structure is a good thing, if aligned the right way. ![]() Getting the job done means achieving the end outcome, the mission of the new organization.īefore long a decision is made to create more structure. When organizations are born, usually as startups or a new growth initiative, there is little structure, everyone is doing multiple roles to get the job done.
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