helping small business achieve their desired future state

thoughts on

closing the gap

Future State is dedicated to providing emboldening insight on optimizing small businesses for sustainable growth. Our focus is on organizational alignment between targets and functions - closing the gap between present reality and vision, between current and future state.

The greatest danger in times of turbulence is not the turbulence – it is to act with yesterday’s logic.
— Peter Drucker

The Power of Organizational Design: Building a Foundation for Growth and Accountability

Effective organizational design is crucial for driving sustainable business growth and ensuring operational excellence. At Future State Consultancy, we understand that a well-crafted organizational structure, coupled with thoughtful people planning, creates the foundation for scalable success. Here’s how an ideal structure and strategic people planning can empower your business:

1. The Importance of Organizational Design: More than Just an Org Chart

Organizational design extends beyond a simple organizational chart; it is the very framework upon which your business operates. It reflects your business model and vision, shaping how you build your teams and ensuring clarity and accountability across the organization. As Jim Collins emphasizes in Good to Great, getting the “right people on the bus” is essential for long-term success. This concept highlights that the first step in creating a successful organization is ensuring that you have the right team members in place, which is facilitated by a well-designed structure.

An effective structure provides a roadmap for growth, helping you to define where you want to go and how to get there. It’s not just about creating a chart but about establishing a living, dynamic tool that evolves with your business. This structured approach illuminates a clear path for team building, allowing you to scale effectively while maintaining profitability and operational efficiency.

2. Accountability Empowers Scalability: Getting the Right People in the Right Seats

Scaling a business successfully relies on placing the right people in the right roles. Gino Wickman’s Traction introduces the “accountability chart,” which emphasizes the importance of designing your organizational structure first, then filling those roles with the right people. This aligns with Collins' idea that having the “right people on the bus” is crucial for growth. Rather than adapting your structure around existing team members, it’s essential to create the ideal structure and then identify and place the right individuals in those roles.

Wickman’s “people analyzer” tool helps determine if candidates are suitable for both the culture and responsibilities of the role. This involves assessing whether they “Get it, Want it, and have the Capacity to do it” (GWC). Ensuring that every team member aligns with your core values and has the capability to fulfill their role is crucial for fostering accountability and driving growth.

3. Cultural Fit: Aligning Values and Vision

Beyond skills and talent, aligning team members with your company’s core values is vital. Collins’ concept of having the “right people on the bus” underscores the importance of cultural fit. Hiring individuals who resonate with your core values ensures they contribute positively to the company's vision and long-term objectives. It’s not just about filling positions but about creating a team that is inherently motivated and aligned with the company’s purpose.

4. Managing Complexity: A Framework for Growth

Growth introduces complexity, making it essential to manage the increasing intricacies of your business. Effective organizational design helps address complexity by providing clarity and reducing ambiguity. An ideal structure eliminates confusion, ensures accountability, and facilitates efficient operations. This allows businesses to scale their teams, optimize processes, and maintain focus on strategic objectives, all while managing the inherent complexities of growth.

5. Embracing Change Through Structure and Leadership

Managing change effectively requires a high capacity for adaptation, supported by strong leadership and a clear organizational structure. Companies that are well-structured and align their organizational design with their strategic goals are better equipped to handle change and drive continuous improvement. Effective change management starts with leadership that inspires trust and fosters a culture of innovation and continuous development.

In summary, an ideal organizational design is a critical factor in achieving scalable growth and operational success. By focusing on structure, accountability, and cultural fit, you create a robust framework that empowers your team and aligns with your strategic vision. At Future State Consultancy, we specialize in helping businesses build this foundation, ensuring that they have the right people in the right roles to drive long-term success.

Chad G - FSC