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How to organize for increased productivity

“When confused, ask the customer.” That’s a classic Sam Walton quote – and one that points to solutions for how to organize for better productivity. This customer-facing philosophy is why our company, a marketing communications company, is organized around the customer – as opposed to being organized by function. This design may or may not work for your business. But for more than 20 years now, we’ve found that by being organized in client-based teams instead of function-based departments, we stay closer to the customer and eliminate a lot of internal conflicts. Here are some changes you might consider that to create an organizational model for delivering what the customer needs -- faster, better and at less cost.

1. Dismantle departments.

2. Re-organize in teams around the client with the specialists needed on the teams.

3. Move accountability from department heads to these client-based teams.

4. Move department heads to coaching positions. (Depending on your size, you may need to have “playing coaches,” meaning they play on one team and coach the specialists in their discipline on other teams.)

5. Hold coaches responsible for the recruitment, inspiration and education of the specialists in their disciplines. Coaches consult, guide, inspire and encourage these specialists, but do not take on the final responsibility for the specialists’ work. This accountability must remain with the individuals and within the client-based teams.

6. Install multiple mechanisms to give all individuals and teams liberal amounts of timely and constructive feedback from their peers, clients and suppliers on their work and interpersonal performance.

7. Eliminate conflicts of interest related to income for alignment of financial goals. (This is the Mother Lode!

8. Promote an understanding that physical location and size of workstation do not relate to seniority or power.

Some may fear allowing this much flexibility and control. But I truly believe, and have been shown, that the more you trust someone, the more they trust you. And it’s trust that is the foundation for successful businesses.

If you’d like more details on how and why to organize around your customers, you’ll find more information at www.pyramidsaretombs.com.

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About January 2008

This page contains all entries posted to BizBox Blog on Slate in January 2008. They are listed from oldest to newest.

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