Organizational design is a forgotten art and science. This oversight is having a negative effect on today’s corporations. Sherlock’s Law states that “structure enables results.” I’ve opted to take the positive spin on this concept, but the reality is, poor structure can cripple results. What I’ve seen is that, to address the rapid change and complexity in today’s business environments, leaders have created overly complicated organizational structures.
Teams, leaders, and employees want and need clarity. They’re clamoring for it. One of the major issues today is overlapping executive roles. My research reveals lack of clarity across overlapping functions has a negative impact on the workplace climate and reduces productivity by 22%. To increase efficiency, we have to place greater focus and consideration on organizational design.
Peter Drucker famously said, ‘Culture eats strategy for breakfast.’ The best formulated strategy typically can’t be executed when employees aren’t engaged or there is pervasive negativity in a corporate environment. I build upon that adage by saying, ‘Structure eats culture for lunch and dinner’ because lack of organizational clarity destroys culture. Infighting, turf wars, budget wrangling, and competition are often the source of cultural discontent. If you heed Sherlock’s Law, a clear, coherent structure can support the culture, strategy, and results.
