Even minor adjustments can create new value
As company owners/CEO’s and key executives, we should always remember that the value, or net worth, of our business is ultimately a culmination of the decisions our team makes. Each day, each week, our teams are making both tactical and strategic decisions. As you add up all these decisions, the outcome is seen in our company performance and organization culture.
As you think about your organization structure, think in terms of how it enables effective and efficient decision making. Too often we think about our organization structure in terms of functional departments or number of direct reports a manager should have. Although these are important factors, what is often not factored in is how the structure is enabling, or disabling, effective and efficient decision making.
Here are some questions to ask yourself about decision making and your company organization structure:
- What are the primary types of decisions our team is making on a daily/weekly basis and is our structure an enabler?
- What decisions are our customers needing us to make daily/weekly and is our structure enabling efficiency and effectiveness in their eyes?
- What decisions is my team making daily/weekly related to the operational aspects of my business and is our structure an enabler?
We know that very often the best performing teams create the greatest company worth. The performance and results aren’t just a result of the talent and experience on your team, but are also enabled by organization structure and effective and efficient decision making. Think about your company organization structure and ask yourself where key decisions are being made regularly and could even minor adjustments to your structure improve your decision making and create new company worth.
