Workforce Arrangement

An organizational aspect that tends to be apparent in a company is its people structure, especially when it comes to a service-based business. Therefore, it is normal for business leaders to present their business through an org chart, which often reflects also how they monitor and act in that organization. Family businesses have a lot of history to tell justifying why certain people occupy certain positions in the organizational structure, based on relationship with the founders and on the trust developed. However, this is not the best criterion for filling vacancies as the company grows and faces new challenges.

A company must systematically deliver superior value to its customers in order to sustain its competitiveness, so the people who work there should organize themselves in a way consistent with the value chain implemented. The allocation of each one in the workforce structure should consider, directly or indirectly, his// her contribution to deliver value to customers and results for the business. Thus, technical specializations are ordered with the levels of responsibilities in areas and positions in the organization (vertical), and allocated as resources according to the requirements to operate the processes involved (horizontal). Grouping of people then can follow a logical orientation that favours collaboration by prioritizing value and results, and not simply to meet demands from functional sectors or hierarchies.

In conclusion, the org chart should not be a “personorg“, reflecting a personal view of organizing people in the company, but rather be consistent with the business value flow and aligned with constituent processes.