Once you have clarified what changes your group’s strategy needs, you can address structural changes to support the desired strategy.
What is structure exactly? Most simply, your group’s structure is the way it organizes people and technology to support its strategy.
Structure consists of the following elements:
- Units: How your direct reports are grouped, such as by function, product, or geographical area.
- Decision rights: Who is empowered to make what kinds of decisions and how.
- Performance measurement and reward systems: What performance-evaluation metrics and reward systems are in place.
- Reporting relationships and information-sharing mechanisms: How people observe and control the way work gets done, and how they share information and make high-level decisions.