Organizational Structures and Leadership Development

As contractors look at their organizational structures with an eye toward both sustainable growth and succession, they must balance the efficiency a functional area structure provides with the leadership development of a business unit structure.

D. Brown Management Profile Picture
Share

In a functional area structure, you avoid duplication of roles and individual functional areas such as estimating, purchasing, and field management are centralized. If executed effectively, this creates great efficiencies with the enabling bureaucracy required for scalability.

Succession: Organizational Structures and Leadership Development. A functional area organizational structure versus one aligned around business units down to a Project Manager. Levels of work including front-line execution, front-line supervision, process design and management, operations flow and integration, general business leadership. Stratified Systems Theory (SST).

For some contractors, it makes sense to break the business into smaller independent business units so broader general leadership skills can be developed and assessed. These individual business units are smaller and the job roles must be more fluid, which can be great for accelerating development and frustratingly messy at the same time.  

Just remember that compensation and accountability will not create competencies and both structures require deliberate development of the team.  

This is more challenging than we can cover in a short post. Please contact us if you want to further discuss the specifics of your organizational structure. 


Organizational Structures and Leadership Development
Continue building value in your business, yourself and your key team members with a good succession strategy....

Organizational Structures and Leadership Development
Continue building value in your business, yourself and your key team members with a good succession strategy....

Planning for the Continued Decline of the Deep Expertise Age Band in Construction
Strategies and tactics for contractors to thrive despite the 25% decline in the "Deep Expertise" age band between 2015 and 2030. There are no magic bullets but there are proven processes that have been used before.
Contractor Business Model: Evolution with Stages of Growth
As a contractor navigates the different stages of growth, the complexity of their business model evolves, including their organizational structure, management systems, and people. Seeing this model visually helps identify bottlenecks and constraints.
Jennifer Blackwood - Difficult People
Ultimately there is exactly one person on this planet who you have 100% control over - YOU! The best way to work effectively with difficult people is to look within and figure out what you need to do to make the relationship less difficult; then do it!