In this episode about Organizational Design
- The podcast explores the concept of organizational design. It emphasizes that there is no perfect structure but rather a need to identify and tolerate certain inefficiencies or deficiencies in a chosen structure.
- Listeners will gain insights into the relationship between strategy and structure, understanding how the organization’s strategic goals should drive the design of its structure.
- The impact of reorganization on social networks, power dynamics, and influence within an organization is discussed, highlighting the importance of considering these factors when making structural changes.
Here is a glimpse of Organizational Design
In this episode of The Lazy CEO podcast, host Jim Schleckser discusses organizational design for mid to large-sized companies. He emphasizes that there is no perfect structure and that the key question is what inefficiencies or problems one is willing to tolerate in a particular structure. Reorganizing too frequently can be detrimental to organizational performance, as it disrupts stability and takes time for teams to readjust and perform. Jim suggests using reorganization as an occasional tool when the current structure no longer delivers value or desired results.
He explains that structure should follow strategy, meaning the organization’s structure should align with its strategic goals. Different strategies, such as cost focus, customer intimacy, or innovation, require different organizational structures. The organizational design should elevate critical processes that drive competitive advantage while less important processes can be minimized. The importance of roles should be based on their relevance to the company’s success. Jim advises considering talent-driven approaches and ensuring that high-potential employees have room to develop and take on important positions. Middle management is crucial for organizations with around 50 to 400 employees to coordinate work and facilitate progress.
Jim also discusses the impact of reorganization on social networks, power dynamics, and influence within an organization. Reorganization can disrupt these relationships, affecting leaders’ effectiveness and performance. He advises being cautious about reorganizing and emphasizes that no structure is perfect, but occasional changes can provide different forms of optimization and improved outcomes.
For more about Organizational Design, listen to the complete podcast wherever you get your podcasts.
Resources mentioned in this episode:
- Jim Schleckser on LinkedIn
- The CEO Project
- Great Ceos Are Lazy: How Exceptional Ceos Do More in Less Time by Jim Schleckser
Sponsor for this episode…
This episode is brought to you by The CEO Project. The CEO Project is a business advisory group that brings high-caliber, accomplished CEOs together. Our team of skilled advisors comprises current and former CEOs who have run both public and private sector companies across multiple industries. With our experience and expertise, we guide hundreds of high-performing CEOs through a disciplined approach that resolves constraints and improves critical decisions. The CEO Project has helped high-performing, large enterprise CEOs with annual revenues ranging from $20M to over $2 billion to drive growth and achieve optimal outcomes. If you are an experienced CEO looking to grow your company, visit www.theCEOProject.com.