The 5 Laws of Effective Organizational Structure! Lex Sisney

Transcription

1 The 5 Laws of Effective Organizational Structure! Lex Sisney

2 Design Controls Behavior

3 Good Design Supports the Purpose

4 What Gives an Organiza1on Its Shape? 1. Func(ons 2. Loca(on 3. Authority

5 A Bad Structure Equals Disaster

6 Structure Done Wrong President VP Opera1ons VP Development VP Sales CFO Manager Molding VP SE Region Produc1on Engineering Accoun1ng Office Engineering Purchasing Agent Receiving Clerk Director Research & Development Quality Manager Produc1on Supervisor Project Manager Engineers Quality Engineer Quality Technician Inspectors

7 The 5 Laws of Structure 1. When the strategy changes, change the structure

8 The 5 Laws of Structure 2. Don t Allow Func(ons Focused on Efficiency to Control Func(ons Focused on Effec(veness

9 The 5 Laws of Structure 3. Don t Allow Func(ons Focused on Short- Range Results to Control Func(ons Focused on Long- Range Development

10 The 5 Laws of Structure 4. Balance the Need for Autonomy with the Need for Control

11 The 5 Laws of Structure 5. Put the Right People in the Right Func(ons

12 The Structural Code Parts Respond Shape Whole

13 The Structural Code Parts Stabilizing Producing Respond Shape Unifying Innova1ng Whole

14 The Structural Code PSI U

15 Different Roles for Different Styles

16 Slower Pace Parts Faster Pace Structured Approach Stabilizer ü Organizer ü Quality control Producer ü Hard worker ü Fighter Short View Respond Shape Unstructured Approach Unifier ü Rapport builder ü We focused Innovator ü Creative ü Cutting-edge Long View Process Oriented Whole Results Oriented

17 Structure Done Wrong President VP Opera1ons VP Development VP Sales CFO Manager Molding VP SE Region Produc1on Engineering Accoun1ng Office Engineering Purchasing Agent Receiving Clerk Director Research & Development Quality Manager Produc1on Supervisor Project Manager Engineers Quality Engineer Quality Technician Inspectors

18 Structure Done Right Decentralized Autonomy Centralized Control

19 Structure Done Right Strategic Execu(on PsIU - Cash balance/flow - Enterprise value - Teamwork Decentralized Autonomy Centralized Control

20 Structure Done Right Strategic Execu(on PsIU - Cash balance/flow - Enterprise value - Teamwork Sales PsiU - Revenues - # of Clients - Client Sa1sfac1on Decentralized Autonomy Centralized Control

21 Structure Done Right Strategic Execu(on PsIU - Cash balance/flow - Enterprise value - Teamwork Sales PsiU - Revenues - # of Clients - Client Sa1sfac1on Admin psiu - Liability control - AR/AP - Hiring/Firing Decentralized Autonomy Centralized Control

22 Structure Done Right

23 How to Bring It All Together?

24 The Strategy Map 3. Scale it 4. Milk it 2. Nail it PSIu PSiU Development 1. Pilot it Psiu PSiu - S Kill it psiu Innovators Early Adopters Early Majority Late Majority / Laggards Stability

25 Perpetual Renewal Then launch new orgs Organiza1onal Development psiu Get to here PSiu Psiu PSIu Maturity Growth Early Growth Birth PSiU Decline - S - - Aging Death Organiza1onal Stability

26 How to Tell If You re Doing it Right Few Compe11on Many 2. Nail it for 3. Scale it for High Low Market Growth Rate Early Adopters 1. Pilot it for Early Majority 4. Milk it for Pricing Pressure Low High Innovators Late Majority/Laggards Nega1ve ( ) Net Cash Flow Posi1ve (+)

27 Strategic Success Path to Prosperity 2. Nail it for 3. Scale it for Early Adopters 1. Pilot it for Innovators Early Majority 4. Milk it for Late Majority/Laggards Path to Prosperity $$$ Maximum building of market awareness Make smart, 1mely investments Maintain pricing and margins by product focus and thought leadership Avoid commodity trap as long as possible

28 Strategic Folly The Face Plant 2. Nail it for 3. Scale it for Early Adopters 1. Pilot it for Innovators Early Majority 4. Milk it for Late Majority/Laggards The Face Plant Innovate on a problem that has already been solved Never establish real pain point/need Never establish margin Never establish leadership Get crushed by vendors with a more complete service offering

29 Strategic Folly The Flame Out 2. Nail it for 3. Scale it for Early Adopters Early Majority 1. Pilot it for 4. Milk it for The Flame Out Never establish customer spending priori1es If first to market, failed to determine if demand is real or imagined (1ming is everything) If late to market, forced to target stronger compe1tors head- on Rapidly lose product margin Innovators Late Majority/Laggards

30 Strategic Folly The Lost Opportunity 2. Nail it for 3. Scale it for Early Adopters 1. Pilot it for Innovators Early Majority 4. Milk it for Late Majority/Laggards The Lost Opportunity Forced to compete on price too early Never establish margin Never establish leadership No leverage to compete in a commodity market

31 Strategy Requirements Alignment Strategy aligns with company vision and values Resources Company has, or can get, the required resources (staff, customers, technology, capital) Competence Company has the core competence and experience to execute the strategy

32 Where are you now? 3. Scale it 4. Milk it 2. Nail it PSIu PSiU Development 1. Pilot it Psiu PSiu - S Kill it psiu Innovators Early Adopters Early Majority Late Majority / Laggards Stability

33 Design Controls Behavior!

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