When was the last time you took a hard look at your organization chart? Structure is a key element in defining any organization's effectiveness. We are not referring to the physical structure of the space it occupies. We are talking about the reporting relationships that exist among people, functions, and departments as reflected in the organization chart.
There are a few fundamental elements to consider when evaluating your organization's structure:
- Ideally, a manager should be responsible for six to eight key result areas. This does NOT mean that a manager should only have six to eight direct reports. One manager can surpervise many people if they share the same responsibilities or work to perform the same service.
- A key result area may not involve the direct supervision of people. Instead, critical functions are the key result areas. For example, assuring that regulatory requirements are met can be a key result area.
If significant time has passed since your organization chart has been evaluated, there is no time like the present. Developing a structure that observes these principles can have a profound impact on organizational effectiveness.
© 1990-2010 Frank J. Brady & Associates, Inc.