Tag Archives: organization

Random thoughts – keeping you on your toes

Structuring for Success – Part 2

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On Wednesday I described the strata theory of organizational structure.  In summary, the workof an organization  (e.g., build a plane) can be categorized by it’s type, e.g., level 1,2,3 ……… and so on.

The type of work at each level generally goes from  long complex tasks requiring a lot of earned power to short simple tasks (i.e., level 1) based on granted power.

My earlier posts describes this in a little more detail. Today I will focus on how the model can help identify problem areas, ultimately leading to resolution. (hopefully)

Comprehension

When direct reports are doing the same kind of work, that is they are both level 3 for example, conflicts quickly arise.  Intuitively you can imagime the angst and confusion when the boss is doing what you have been assigned ( often by the boss).

Terms like micro managing or constructive dismissal can be applied to this scenario.  To solve, study the work done in your organization, based on the length and complexity of the tasks, ensure direct reports are not working at the same level.

Gaps

When someone doing level 2 type work is reporting to a boss doing level 4 work, things can be missed.  Gaps in the work flow , not unexpectedly, create challenges at the lower level of work.

Working Across Multiple Levels

For me, this is both the most common and frustrating.  In this case the resource at (for example) level three sets the direction and goals assigning them to people who work at level 1 & 2.

Unfortunately they then go and proceed to do the work.  That is the senior manager assigns projects aligned to the strategies and then goes and runs the projects alongside those assigned to do this type of work?

The project managers accountable for the work become quickly disaffected and impotent.    Most often, ultimately, they leave the organization.

Random thoughts – keeping you on your toes

Structuring for Success

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Groups of  people bonded together by a common purpose require a defined organizational structure.  This applies whether it is a large corporation, charity, non-profit, government agency, to name just a few of the numerous  types of groups, right up to just a simple family.

The structure can develop organically (e.g., the parent child relationships in a family) or can be very complex requiring a lot of time and effort to develop.Outside consultants may be hired to provide guidance in the more complex cases.

Whether, organic, intuitive or intracately detailed the purpose of the structure is to guide the organization toward efficient and effective achievement of it’s purpose.

This is quite different from the individual goals and objectives that may cascade throughout the organization.  The organization structure enables seemless integration of disparate operations all focused on the overriding purpose of the organization.

Every Piece is Critical

Many years ago, I heard the story of a janitor at one of the Boeing aircraft factories whom, when asked what his work was clearly stated ” I build airplanes”.

The point is clear.  Boeing  builds airplanes and everyone who works there, regardless of their own specific role, plays a part in the companies ability to achieve their outcome.

Well crafted organization structures are a critical tool in making this happen.  Like a school of dolphins or military aircraft in close flight successfull completion of the journey requires every part to fully understand not only their role and accountabilities but all the others as well.

Everything must operate in perfect synchronization to ensure success.

So organization structure is critical, what next?

Hopefully I have set the frame in this post for how critical your structure is to your operations overall success.  In future posts I will explore key aspects to consider while developing that structure.

 

Random thoughts – keeping you on your toes

Do organization structures matter?

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After an almost 40 year career at various Corporate, Crown Corporation and Public Institutions I have come to the conclusion that organization structures really matter and fact can be the difference between high quality outputs (product, service) provided efficiently (time frames and cost).

A Model to Consider

Years ago I worked with an organizational psychologist.  I was fortunate to be exposed to his theories about companies structures.  There are many of these theories, however, those of Elliot Jaques really resonated with me.

Organizations consist of layers of complexity.  Let’s call these strata and number them.  The lowest number the most simple and the highest most complex.  So S1 (strata 1) is junior and say S5 would be much more senior.

In order to keep the model simple and effective we determine which strata of the organization you reside in, based on the time it takes to do your longest task and the complexity associated with that task.  Complexity ranges from do this/do that to do this, consider that, if this happens then possibly that etc.  Basically complexity is related to the information tree associated with making a decision and completing the task.

How about and Example

Take a bank.  A teller’s longest task is weekly balancing.  The decision tree is simple, count this cash, make a deposit.  Check the end of day balance and confirm it is correct.  Fairly straight forward.  So this role would be a S1.

The head teller’s longest task is scheduling the tellers over a month and the decision complexity a little higher.  What will the line up be at noon, should I schedule more tellers, if the commercial customers come in a ten in the morning I should have three tellers on duty but what if they come in at eleven. This role could be a S2.

You can following this process up the strata’s from supervisor to manager to director, vice-president, senior vice president, etc.  Regardless of the specific title the actual work can be mapped to an applicable level.

Note:  This model is not predicated on titles (although I have referenced those above, the key to this model is to determine each strata based on the work being completed by the role (longest job and complexity), not the title.

Using the model to improve organization structure.

Like the basic definition of the model using it to improve quality of organizational output and overall efficiency is very simple.

  • When people at the same level report to each other you get compression.  That is someone whose work fits the S3 criteria reporting to someone else whose work also fits the S3 criteria.  Typically these two individuals will both be frustrated, not feeling comfortable in their roles and this effects their work.
  • When a person at one level reports to another 2 levels or higher you get a gap (i.e, an S1 reporting to an S3)  This gap results in a deficiency in the level of support the lower level role is receiving and work quality is impacted negatively.

The fix is to identify gaps and compression within your organization structure by reviewing the work done by each role (e.g., tellers, head tellers, customer service representatives, assistant managers, deposit analysts and so on for whatever roles exist in the Corporate or Institutional area).

Then simply validate the reporting relationships and re-organize to eliminated any gaps or compression identified (i.e., add or eliminate roles and reporting lines as needed).

Voila, your organizations performance will improve within six months.