Flawed organizational structures and leadership chokepoints can lead to self-imposed glass ceilings that restrict company growth
It begins with operational friction that never seems to go away. It affects the growth of your company until you believe you cannot grow beyond a certain volume of units sold and delivered. Sometimes it is so pervasive and yet invisible to you, the owner or manager. What is this insidious condition that can drain the life out of a group of hardworking people? Simply put, it’s the wrong organizational structure coupled with managers who are not capable leaders.
Change and Opportunities
One of the first items I address with clients is to take a look at their one- to three-year goals and expected growth of units and revenue. This is the foundational platform that determines how a company should be structured. There are other factors that influence the organizational structure; the most important to me are units built, dollar volume, complexity or simplicity of product, geographic breadth, technological expertise, and process flow management. These are the major factors that contribute to the development of the best organizational design for each company and create the demand for relevant leadership positions.
The Key to a Great Senior Leadership Team
Raising the Organizational Tent
Let’s get down to cases and work through a real-life example. A builder building 75 homes a year secures a large land parcel that calls for the delivery of over 225 homes in the next 12 to 18 months. The company will be required to perform according to their well-designed and highly accurate financial projections. The homes will be built in four locations: two large sites, each with 75 homes slated to start, and four additional sites with a total of 75 semi-custom homes built within brownfield (infill) communities.