Let’s continue with part 4 of this blog series. We discussed the importance of having an organization in alignment as illustrated in my STAR Diagram. 
The diagram includes alignment in Strategy, Structure, Process, Rewards, People, as well as Leadership.
After Strategy the next key element is structure. Structure is defined as interdependent departments or business units of an organization that working together to achieve an organization’s strategy. As part of the structure, an organization clearly lists who has authority over the policies and procedures of these business units. Does your structure support your strategy? How do you know? Here are a few thoughts that may help you determine if your structure does in fact support your strategy.
Let’s take a closer look at structure. Every organization has “black spaces” and “white spaces” within their organization. “Black spaces” refer to those functional areas that the organization has formally defined such as the departments and functions of the organization, as well as the people to staff them who hopefully have clear authority over these areas … in other words, the boxes on your ORGANIZATIONAL CHART.
“White spaces” refer to those areas where hand-offs take place that have not been formally defined, maybe somewhat unclear, and there isn’t any one person with authority over them. However, it’s in these “white spaces” where innovation, creativity, and “out of the box thinking” occurs – where sustainability can be found or where finger pointing and delays can have a negative impact on sustainability and competitiveness. This is the area where you might hear, “that is their responsibility not mine.”
Organizations that only manage the “black spaces” often find that they are managing and operating with a SILO-MENTALITY. Goals are set based upon the department’s function without regard to the other departments or units within the organization. Let me share some examples:
- The sales department hits its goals by selling product, but that product hasn’t been totally developed and manufacturing is still working out some kinks, so it can’t be delivered on time to the customer.
- Production creates a really powerful new product with all of the bells and whistles, but it would be cost prohibitive for any customer to purchase.
- Manufacturing is rushing product out the door to meet its yearly numbers, but its causing inventory costs to skyrocket.
- Sales rolls out a new initiative but has not checked with HR to secure enough personnel or has not worked with customer relations so that they can support the imitative.
When a department’s goals come up short, the blame game takes center stage. “We would have met our numbers, if we had gotten what we needed from ________ department. It’s their fault that we’re in this position.”
Doesn’t seem like much fun does it? Has this ever happened to you? This occurs in organizations all of the time – hence the phrase, I spend my day putting out fires. Wouldn’t it be nice to prevent these from ever occurring in the first place?
Do you know who is managing the “white spaces” in your organization?
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