At least quarterly, leadership teams of companies running on EOS ask themselves three questions to strengthen the People Component. The first of those questions is “do we truly have the Right Structure for the organization?
“Right Structure” is the simplest and best way to organize all the human energy in a company. By carefully analyzing your current structure every 90 days, your leadership team ensures that as things inevitably change (your market, your competitors, your people, your products and services, etc.), you make the changes necessary to maintain/improve your capabilities. Here are four specific questions to help identify potential structure issues in your organization:
1. Are all of major functions of the business represented, and in the right place? A “function” is the name at the top of each seat – Marketing, Sales, Operations, etc. If there are questions, concerns, omissions, or obsolete functions – those are issues.
2. Are the 5 Roles in each seat clearly identified, and an accurate representation of what we need each seat owner to be obsessing about each week? Are there any omissions, duplications, or confusion/ambiguity about the 5 Roles, and about who’s accountable for what? If so – those are issues.
3. Are the relationships between each seat correct? Another way of asking this is, does every team in your organization include the right members? If someone is missing, or seems to not belong on your team – that might be a structure issue.
4. Is the headcount right? do you have enough people in each function/seat to serve your customers well and achieve your vision, but not too many to manage costs properly and achieve your financial objectives?
That’s all it takes – five minutes and a few simple questions – to ensure you have the Right Structure to achieve your goals. Once that is clear you can work to keep those seats filled with the Right People in the Right Seats, two concepts I will address in upcoming blog posts.