In this issue, you will learn:

1. How to structure your company

2. Do you need a structure?

3. A common pitfall for organizational structure

Reading time: 3 minutes.

How do I structure my company?

The traditional structure of companies, with a CEO, CFO, CTO, etc., at the top and layers of management below, has failed over and over again.

There are now many ways to set up a business. Among them is something they call the matrix. It has two bosses, each of whom is in charge of a different area.

For example, one boss might be in charge of the geographical area and have the power to hire and fire employees, while the other might be in charge of the employee's technical domain or a certain subsidiary, product, or project.

With the fast pace of the SaaS era, where everything is becoming software from the cloud, a more advanced system was created. The role of the leader is to serve, not to command, and companies are made up of a network of small teams that create value for customers frequently and consistently every two weeks on what are called minimum viable products.

No matter what kind of structure you use, there is still something missing for your business to grow.

See the thread below for more on what I call the "12 systems."

12 system restructure?

No, it is not part of the structure. Actually, if your company has fewer than 50 employees, you may not need it at all. All you need is to define roles.

Each of these 12 systems or end-to-end processes needs someone who knows how they work and how to measure them so that we can make decisions.

He is not a new boss, which is a very important point for managing change in organizations.

This is a very important principle: the difference between having authority, being accountable, and being responsible.

1- Authorized: A person who has the power to make decisions.

2- Accountable: The person who counts and reports.

3- Responsible: The person who produces the output.

There should only be one person in charge of each system. That person may be authorized, but there can only be one person who is accountable.

"Silos" must be avoided.

Many companies are now going in this direction to fix what are called "silos."

It's when each department keeps to itself and only cares about its own needs and politics, putting the customer last, if at all.

I could show this with a funny story. It was done to a bank years ago as part of the request to resolution system.

They didn't have a clear strategy in place, and they put ads on their Facebook page for a service that didn't work.

When I asked why this was happening, I was told that:

We, the commercial department, are in charge of Facebook ads. We want to run a certain number of ads on this service.

If the technical team can't get it up and running, that's not our problem; that's not our job.

So, this kind of culture is bad for businesses in the digital and social media age, where even a small story can turn into a PR crisis.

Organizations that still do things the old way will fail and go out of business.

If your company needs more information about this system, email me, and I'll set up a call with you to help and guide you.

How can I improve the Business Builder?

Hit reply and let me know!

- Luqman