In the beginning, there was a Founder. Who had an idea to start a company. Perhaps it was a hobby. Perhaps it should have stayed a hobby, but, then that wouldn’t make for a very good story.

There was work to be done, and it was the Founder who was doing the work, there was no one else. And, there was work left over, so the Founder hired some people, mostly friends and family to help out. Each of these people contributed according to their own ability, work organized around each of their talents. And, there was still work left over.

At some point the Founder realized work could no longer be organized around the people. The people had to be organized around the work. Roles emerged, specialized roles for people to play. Individually there were good performers and poor performers, but individual good performance does not necessarily translate into organizational performance. Not only do people have to be effective in their individual roles, but those roles have to work together to create a competent organization.

Organizational structure is simply the way we define the working relationships between roles. Individual high performance is not enough, we have to look at the way people work together.
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Watch Tom Foster on Chris Comeaux’s Anatomy of Leadership.