M18BuildPeople· Module 1
Organisation Design
The structure grew around people, not work. Reporting lines are unclear and gaps sit between teams.
- Grow
- Scale
- Stabilise
- People
- Leadership
- ~5 min · Worksheet
The business problem
In most growing businesses, the structure is the history of who was hired when. Roles overlap, some people report to several managers, and important work — collections, customer follow-up, data quality — belongs to no one.
Why it matters
Structure determines who owns results. A structure designed around the work makes accountability possible and shows where the next hires should be.
What you will learn
- Design structure from functions and outcomes, not from current people
- Choose spans of control that managers can sustain
- Identify gaps and overlaps in ownership
- Plan the structure for the next stage of growth
Core questions
- What work must the business do well to deliver its promise?
- Who owns each function end to end?
- Where do people have more than one manager?
- What structure will we need at twice our current size?
Work through the module
CaseWhat is happening?
Agro-processor, 90 people · Illustrative teaching case
An agro-processor has grown from 20 to 90 staff. The founder has twelve direct reports; the operations manager also handles procurement and HR; nobody owns customer service. Redesigning the structure around six functions reduces the founder's direct reports to five and assigns every function an owner.
DecisionWhat does the leader need to decide?
Keep the current structure and add people where it hurts, or redesign it around the work?
FrameworkHow should they think about the problem?
Function-first design
Start with the functions the business needs (Market, Customer, Delivery, Money, People, Intelligence), define the outcome each owns, then design roles and reporting lines to deliver them. Only then match people to roles.
ToolWhat can they use?
Structure design worksheetWorksheet
- List the functions and their outcomes
- Draw the ideal structure without names
- Place current people into it; note gaps and overlaps
- Check spans of control and single points of failure
ApplicationHow does it apply to their business?
Apply it to your own business:
- Draw your current structure honestly
- Draw the function-first structure without names
- Compare them and list the gaps
ImplementationWhat changes?
What should change in the business:
- Assign an owner to every function
- Resolve dual reporting lines
- Sequence hires to fill the most important gaps first
ReviewDid it work?
How to tell whether the change worked:
- Does every function have a named owner?
- Has the founder's number of direct reports fallen?
- Are fewer issues falling between teams?
After this module you should be able to decide
Keep the current structure and add people where it hurts, or redesign it around the work?
And leave with: An organisation chart built from the work the business must do.
Sequence · People