Posted in:HR Governance
Though we have written several articles on this subject, it is critical to revisit so more business leaders can get it right. Unfortunately, we continue to see business owners miss the mark when it comes to organizational design. Oftentimes, we see that their people structure is static despite reality demonstrating that there is constant people movement. In other cases, we see management teams put great effort into updating their organizational charts to sadly be saved in a digital repository that no one visits or printed as wall art, which just undermines the original purpose of such undertakings. Overall, it seems the main problem is a lack of understanding that organizational design is the process that allows business owners to plan the layout of their future organization. Whereby, the organizational chart is an output of that strategic exercise.
Hence, it is a good idea to incorporate a review of your people structure on a regular basis. Every few years depending on the speed of change your organization faces should be sufficient. It is best to add it as an action item during your regular planning sessions.
Another good practice is proactive headcount management. Whereby, you can prevent cases of short staffing or bloating with too many employees. A dose of time spent on analysis should yield some actionable results. It will be much more effective if you combine it with solid workforce planning, job redesign, and staffing functions to bolster the entire strengthen of your talent management efforts.
Effective Tool Use
All in all, a recognition that tools exist to enable effective people management will help you make better choices at the leadership level to move your company forward. You will know you are successful in developing your people structure when you can describe your organizational chart as dynamic, easy to maintain, and useful for management decision making.
Here to Help
If you need help developing a process to review and update your people structure, we can help. Honiva Group Inc. can be reached for a free confidential consultation at +1-403-470-5350 or [email protected]
For further details on how Honiva can help you prepare your company strengthen itself, please view our service offerings.