Organizational Structure/Decision Making

Most organizations, when asked, can produce a Table of Organization or some high level document that outlines roles and responsibilities. However, when pressed on the real world application of this document (s) it becomes apparent that there are some cracks in the foundation regarding the day-to-day utility of the thinking behind it. In fact, some organizations view this as a box they need to check off or hurdle to cross to accommodate the needs of external audiences rather than facilitate effective organizational outcomes. Other organizations see some benefit to the process, but revisit the model so infrequently that end up being designed for yesterday rather than positioned for today and tomorrow. To paraphrase Jack Welch, “organizations are perfectly designed for the results they get.” Lastly, it is rare that the model trickles down beyond the senior management levels and when it does, there isn’t ample attention paid to the details of roles, responsibilities and ultimate accountability for decision making. Therefore, instead of creating a culture of true empowerment, what transpires is an environment where confusion is offset by personal relationships and lobbying. As a result, risk aversion becomes the norm creating an unhealthy dependency on senior leadership.

Assessment Questions: Is there a Table of Organization that is clear about roles and responsibilities within the organization? Do our job descriptions and performance management processes link effectively with Table of Organization? Does this document accurately reflect the internal and external dynamics confronting the organization? What the average and maximum layers involved in any key decision? Which decisions are the domain of programs or departments and which decisions require collective and collaborative decision-making? Are decisions effectively integrated with implementation efforts? Does accountability ultimately rest with the decision maker? Are all staff clear regarding the decision-making roles with the organization? What general criteria do we use to empower effective decision making? Does our structure encourage risk taking, innovative behavior or hamper it? Have we identified the future leaders and managers of the organization and are we giving them the opportunity to grow into that role?

Intervention: A thorough assessment of the existing organizational structure including the roles and responsibilities inherent to the model; clear and consistent decision making matrix.

Miscellaneous: It takes time to build and organizational infrastructure, so it should naturally take time to redesign it. The tendency is to jump in and begin making major changes without thinking through the ramifications of those changes including the existing vested interests within the hierarchy of the organization. Unless otherwise convinced, management and senior level staff will resist any changes they perceive as integral to their domain of responsibility. Moreover, changing the formal structure is only a small part of the battle. It’s significantly more difficult to translate the new structure into practice and senior leadership must model the new behavior and also hold their direct reports accountable for modeling the behavior. In addition, existing support systems may require some reengineering to be properly aligned with the new structure. Lastly, any significant change in structure constitutes a major development within the organization and requires the requisite efforts at building staff education and buy-in.

Approach:  

• Review and assessment of existing Table of Organization 
• Facilitated discussion with senior management team about existing model 
• Conduct 1:1 interview with senior team members, key board members and targeted staff 
• Review and assessment of existing job descriptions of senior team members including decision making authority 
• Review of strategic planning efforts and outcomes over past 3-5 years (1) Conduct high level SWOT Assessment (if information is not already available) 
• Review performance appraisals of senior team members and targeted management staff 
• Conduct skills assessment of senior management team based on including gap assessment based on current and future organizational needs 
• Create a table of organization with clear roles and responsibilities including a well defined organizational decision making matrix with relevant accountability mechanisms/tools in place.