The Bloated Organization

From the Ask Tom mailbag –

Question:
I grew up, as a manager in a small company. I just received an offer, which I accepted at a large company with over a thousand employees. As I look around, and I know this is a corporate structure, I feel a little lost. There are managers of this and that, directors, senior levels, junior levels. I got a copy of the org chart, looks like there are about eleven levels between the clerical team and the CEO. I have only been here for two weeks, but it looks like chaos. Even the meetings I attend seem misdirected. There is a formal agenda that gets blown through quickly, then there is a discussion (argument) that goes until the end of the meeting (always ends on time). Did I make a mistake? Should I have stayed at my old company? (Unfortunately, too late, they already filled my old position.)

Response:
At least they end their meetings on time.

I often get a call from a company like this, complaining of two things. They think they have a communication crisis or a personality conflict between two people. The company wants to know if I can arrive, do some personality profiling and conduct a communication seminar. Your description gives me better clues to what is really going on.

In most cases, I do not believe in communication breakdowns or personality conflicts. I believe there is a structural issue. Structure, organizational structure, is simply the way we define the working relationships between people. On paper, it looks like a chart, in real life, a messy chart.

The most important definition in working relationships is two related concepts, accountability and authority, one goes with the other. To be accountable for an output, I must have the authority to make a decision or solve a problem in the way I would have it solved. If I have the authority to make such a decision, I must also have the accountability that comes with it.

This basis for organizational structure, accountability and authority, also provides guidance for the number of management levels required. Without much more due diligence, my intuition tells me this organization needs no more than five levels, meaning it needs no more than five levels of accountability.

Organizations, like the one you described, get bloated because there is no framework for decision making or problem solving. Supervisors get promoted to manager because someone needed a raise and got a title instead. Or, someone got a raise and needed a title to go with it. Or, an underperforming team member needed more supervision, so they got a special manager to watch over them (instead of a demotion or termination). Organizations get bloated for all kinds of reasons. And, that bloating costs the company in decision friction and problem solving throughput.

But, you are in a situation you are stuck with, at least for now. And you are likely a junior manager with lots of accountability and little authority. Here is your first baby step. Get clear with your manager, in each key area of your role, what is the specific output and how often will that be reviewed. For each accountability, what is the authority you have to make a decision or solve a problem in the way you would have it solved. That will keep you from getting fired in the first 60 days.

Check back with me then and tell me what more you have learned.

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