LEADERSHIP: FIRST, CREATE THE SKELETON

Published: 2007-04-10   please add a comment below

Our skeleton provides the structure for our body.  Without it, we’d be a wobbly heap of flesh on the floor.  The same is true for organisations.  If the structure isn't clear, it's hard to make things hold together.  What am I responsible for?  Who's my boss?  Who are my peers?  Who are the subordinates I'm responsible for?  These are amongst the first questions we ask in relation to a new job.

Across my 20-plus years of consulting, I've seen individuals and departments with no idea how far their responsibilities extended - or, in some cases, to whom they really reported.  Sadly, some leaders knowingly create such stress and inefficiency.  They believe ambiguity increase internal competition.  They're right, but it's normally destructive - and requires their regular intervention to settle turf wars and disputes.

I'm often asked how to design a good structure.  But, there's seldom a single right answer.  Responsibilities can be split a number of ways.  For example, by geography or function.  And, in a large business, there’s often matrix reporting: to both a local territory boss, and a regional or global product or functional one.

But, here are some thought-starters.  Establish business unit and team organisations to support business goals - since structure follows strategy.  If possible, capture each key business trade-off under a single individual or team.  And, clarify responsibilities and reporting lines, however complex this may be.  Also, push down responsibility and accountability as far as possible.  And, of course, recruit and promote on merit - not just familiarity or friendship.

Whether you're a leader of your own business, or a leader in a large organisation, it's your responsibility to address these types of issues.  If you don't, you open the door to grabs for territory and power, which will favour the tough over the wise.

Get organised!

Dr. Timothy Pascoe AM
PhD (Cambridge), MBA (Harvard), BE & BEc (Adelaide)
Creator, V|E|C|T|O|R Leadership^®