Roy's Blog

April 4, 2012

What happens when structure serves the customer?

How many levels in your organization separate the executives from the customer?

Too many I suspect.

Stand-out organizations have a specific objective to minimize the number of layers between those that serve customers and those that are in leadership positions.

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Amazing things happen when these structural filters are removed.

— leadership is better informed about market - both customers and competitors- behavior since communication lines are more direct and fewer numbers of managers are in a position to filter any market news that could be helpful in executing the organization’s strategy.

— the frontline gets heard in terms of the barriers to their performance; leaders have a better chance to cleanse the internal environment and make it easier for customer serving employees to do a better job.

— managers in the organization are forced to actually DO MORE than manage. A flatter structure requires managers to perform tasks rather than delegate.

— response times to customer problems improve as leaders are made aware of problems in a timely manner.

— the organization’s customer learning abilities improve as information within the organization flows more freely.

— decisions are made faster as leaders are informed of performance levels in real time mode.

— operating expenses are reduced without impacting the customer.

— the ability to respond to unanticipated events in the environment is dramatically improved. Feedback on events happens quicker; reaction time shortens.

Organization structure is the vehicle to allocate resources to execute a strategy.

It will encumber plan execution if it is too vertical and bureaucratic; it will facilitate it if it is flat.

Structures don’t serve management; they should serve the customer.

Does yours?

Cheers,
Roy

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  • Posted 4.4.12 at 10:00 am by Roy Osing
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