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PART 4: How to make 
sure your structure is 
built for good, not evil. 
How to build a high-performing organization in the 21st century. 
All rights reserved PeopleFirm LLC 2014
Strategy aligned? Check. 
Fed by your culture? 
Check. 
Ok then, 
let’s talk structure. 
All rights reserved PeopleFirm LLC 2014
Good structure supports and 
balances your organization 
(instead of controlling it). 
…it reinforces and enables 
your strategic direction …it creates great jobs to 
All rights reserved PeopleFirm LLC 2014 
keep your people engaged 
and fulfilled 
Culture Structure Work 
…it gives your people the 
necessary autonomy to get 
work done 
…it enables efficient 
collaboration – the way 
you want your people 
to work 
People 
Strategy
In other words, put your 
culture and strategy in 
place, then make sure 
your structure is the 
heck out of the way. 
All rights reserved PeopleFirm LLC 2014
Because a good 
corporate structure 
is like your own 
bone structure: 
when it’s working 
right, you shouldn’t 
notice it. 
All rights reserved PeopleFirm LLC 2014
Let’s take a closer 
look at what might 
make your structure 
good or evil. 
All rights reserved PeopleFirm LLC 2014
First, let’s visualize evil. 
(and by ‘evil’ we mean that it obstructs you from 
achieving your goals and getting things done) 
All rights reserved PeopleFirm LLC 2014
evil : driven by policy. 
Your structure is probably working for evil if it’s driven by anything other than your strategy and 
culture. All too often, org structure is determined by internal politics, company history, outside 
regulations, or even individual personalities (you know, the ‘Jill really likes to manage the art 
department, so we need to make sure we keep that role for her’ approach). 
This approach leads to a structure that doesn’t support where the company wants to go, or how it 
wants to get there. Instead, always, always start with your strategy. 
All rights reserved PeopleFirm LLC 2014
evil : over-engineered. 
Less-structured organizations out-perform heavily-engineered organizations. Why? Because the 
more complexity you add to your structure, the less agile you are – and being agile is more and 
more important in this VUCA (Volatile, Uncertain, Complex, and Ambiguous) world. 
How many desks does a 
communication have to 
cross before it reaches the 
front-line staff? Now 
imagine that number cut 
in half. Better, right? Just 
keep it simple. 
All rights reserved PeopleFirm LLC 2014 
Heavy going. Just right!
evil : too many witches, 
not enough flying monkeys. 
When you have an org structure that is like a fancy cake: layer after layer…what do you end up 
with? Lots of managers. Even a simple structure can have too many. And too many managers 
often means working managers – people who have to manage others while still handling other 
duties - which means they aren’t fully focused on either role. 
A structure that requires 
fewer managers means 
you can hire or promote 
people who want to 
manage and are good at 
it – you know, the ones 
who really do it right. 
All rights reserved PeopleFirm LLC 2014
evil : too much ‘who’s on 
first?’ 
A good structure requires clarity. Without it people don’t know what their roles are or how 
they fit into your strategic plan. It’s a lot like kiddie T-Ball: you’ve got a bunch of frenzied 
action… but also a lot of dropped balls, stepped-on toes, general confusion, and very little actual 
progress. 
Instead, make roles clear, define 
expectations, and make who 
decides what transparent. 
Don’t forget to make sure 
everyone knows exactly how 
they are helping to reach your 
strategic goals. 
All rights reserved PeopleFirm LLC 2014
But it’s not all bad 
news! Want to look at 
good structure? 
All rights reserved PeopleFirm LLC 2014
good : supports your strategy. 
If you’ve been following us, this should come as no surprise: you need to start with your strategy. 
What organizational structure will support your strategic goals? What will reflect your culture 
best? Always build from strategy up. 
Tip: tying your structure back to your strategy and culture will help connect your people to the great thumping-heart 
goal (you know, the purpose and meaning) of your company – a sure way to drive engagement and 
All rights reserved PeopleFirm LLC 2014 
loyalty in today’s transient workforce. 
Want a well-run army? Then 
go for hierarchy and layers of 
authority. But if you want to be 
nimble in order to meet 
changing market forces, don’t 
make your structure so dang 
complicated.
good : enables collaboration. 
Build your organization in such a way that collaboration and knowledge sharing are simple and 
supported. Improve information flow by flattening your structure (removing layers of 
management): the fewer people 
an idea has to move through, the 
faster it can be implemented. 
Or think informal affinity groups. Got 
marketing people scattered across 
different teams? Help them come 
together to share their wins, losses, 
and inspirations – and incidentally 
increase job satisfaction. 
All rights reserved PeopleFirm LLC 2014
good : drives autonomy. 
Rule number one for great performance in today’s world of work? Treat your people like adults. 
How? Give them autonomy. This means having a structure that gives your people the freedom to 
actually get stuff done. 
To do this, make sure you push decision 
making to the appropriate level. 
Decisions should be made where the 
most current and relevant information is 
- usually closest to your customer and 
your core processes. 
Tip: want excellent customer service? Make sure your customer-facing people can make customer-centric 
decisions. That’s what we mean by making sure decisions are at the appropriate level. 
All rights reserved PeopleFirm LLC 2014
good : creates great jobs. 
Studies have shown that the best way to keep your employees engaged is to create great jobs for 
them. And we all know engagement drives organizational performance like nobody’s business. So 
don’t build your organization around a slew of meaningless, thankless, and soulless positions. 
Instead, ditch the unnecessary. Kill 
burdensome processes. And build 
roles that meet your strategic need 
but also stretch people - at all levels 
of the employee career cycle, from 
the most experienced to the 
freshest-from-school. 
Tip: remember, your top performers will need ways to develop in the organization. Provide growth opportunities 
that focus on growing their mastery and autonomy, not rank. Need an example? Give that top salesperson a 
All rights reserved PeopleFirm LLC 2014 
bigger territory instead of making her a manager.
Let’s recap. 
Driven by policy 
Over-engineered 
Not enough clarity 
= = 
All rights reserved PeopleFirm LLC 2014 
Creates great jobs 
Enables 
collaboration 
Drives autonomy 
Supports your 
strategy 
Too many 
Managers 
evil. good.
Tune in next month for PART 5: how to tune your 
performance management to make your organization 
great. 
All rights reserved PeopleFirm LLC 2014 
Got all that? Think you’re 
done? 
Not so fast: if you don’t 
have your people working 
with you, you aren't going 
to get very far.
your people = your success. 
Seattle ∙ Portland ∙ Vancouver, B.C. 
All rights reserved PeopleFirm LLC 2014 
www.peoplefirm.com 
thanks for reading.

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How to make sure your structure is built for good, not evil.

  • 1. PART 4: How to make sure your structure is built for good, not evil. How to build a high-performing organization in the 21st century. All rights reserved PeopleFirm LLC 2014
  • 2. Strategy aligned? Check. Fed by your culture? Check. Ok then, let’s talk structure. All rights reserved PeopleFirm LLC 2014
  • 3. Good structure supports and balances your organization (instead of controlling it). …it reinforces and enables your strategic direction …it creates great jobs to All rights reserved PeopleFirm LLC 2014 keep your people engaged and fulfilled Culture Structure Work …it gives your people the necessary autonomy to get work done …it enables efficient collaboration – the way you want your people to work People Strategy
  • 4. In other words, put your culture and strategy in place, then make sure your structure is the heck out of the way. All rights reserved PeopleFirm LLC 2014
  • 5. Because a good corporate structure is like your own bone structure: when it’s working right, you shouldn’t notice it. All rights reserved PeopleFirm LLC 2014
  • 6. Let’s take a closer look at what might make your structure good or evil. All rights reserved PeopleFirm LLC 2014
  • 7. First, let’s visualize evil. (and by ‘evil’ we mean that it obstructs you from achieving your goals and getting things done) All rights reserved PeopleFirm LLC 2014
  • 8. evil : driven by policy. Your structure is probably working for evil if it’s driven by anything other than your strategy and culture. All too often, org structure is determined by internal politics, company history, outside regulations, or even individual personalities (you know, the ‘Jill really likes to manage the art department, so we need to make sure we keep that role for her’ approach). This approach leads to a structure that doesn’t support where the company wants to go, or how it wants to get there. Instead, always, always start with your strategy. All rights reserved PeopleFirm LLC 2014
  • 9. evil : over-engineered. Less-structured organizations out-perform heavily-engineered organizations. Why? Because the more complexity you add to your structure, the less agile you are – and being agile is more and more important in this VUCA (Volatile, Uncertain, Complex, and Ambiguous) world. How many desks does a communication have to cross before it reaches the front-line staff? Now imagine that number cut in half. Better, right? Just keep it simple. All rights reserved PeopleFirm LLC 2014 Heavy going. Just right!
  • 10. evil : too many witches, not enough flying monkeys. When you have an org structure that is like a fancy cake: layer after layer…what do you end up with? Lots of managers. Even a simple structure can have too many. And too many managers often means working managers – people who have to manage others while still handling other duties - which means they aren’t fully focused on either role. A structure that requires fewer managers means you can hire or promote people who want to manage and are good at it – you know, the ones who really do it right. All rights reserved PeopleFirm LLC 2014
  • 11. evil : too much ‘who’s on first?’ A good structure requires clarity. Without it people don’t know what their roles are or how they fit into your strategic plan. It’s a lot like kiddie T-Ball: you’ve got a bunch of frenzied action… but also a lot of dropped balls, stepped-on toes, general confusion, and very little actual progress. Instead, make roles clear, define expectations, and make who decides what transparent. Don’t forget to make sure everyone knows exactly how they are helping to reach your strategic goals. All rights reserved PeopleFirm LLC 2014
  • 12. But it’s not all bad news! Want to look at good structure? All rights reserved PeopleFirm LLC 2014
  • 13. good : supports your strategy. If you’ve been following us, this should come as no surprise: you need to start with your strategy. What organizational structure will support your strategic goals? What will reflect your culture best? Always build from strategy up. Tip: tying your structure back to your strategy and culture will help connect your people to the great thumping-heart goal (you know, the purpose and meaning) of your company – a sure way to drive engagement and All rights reserved PeopleFirm LLC 2014 loyalty in today’s transient workforce. Want a well-run army? Then go for hierarchy and layers of authority. But if you want to be nimble in order to meet changing market forces, don’t make your structure so dang complicated.
  • 14. good : enables collaboration. Build your organization in such a way that collaboration and knowledge sharing are simple and supported. Improve information flow by flattening your structure (removing layers of management): the fewer people an idea has to move through, the faster it can be implemented. Or think informal affinity groups. Got marketing people scattered across different teams? Help them come together to share their wins, losses, and inspirations – and incidentally increase job satisfaction. All rights reserved PeopleFirm LLC 2014
  • 15. good : drives autonomy. Rule number one for great performance in today’s world of work? Treat your people like adults. How? Give them autonomy. This means having a structure that gives your people the freedom to actually get stuff done. To do this, make sure you push decision making to the appropriate level. Decisions should be made where the most current and relevant information is - usually closest to your customer and your core processes. Tip: want excellent customer service? Make sure your customer-facing people can make customer-centric decisions. That’s what we mean by making sure decisions are at the appropriate level. All rights reserved PeopleFirm LLC 2014
  • 16. good : creates great jobs. Studies have shown that the best way to keep your employees engaged is to create great jobs for them. And we all know engagement drives organizational performance like nobody’s business. So don’t build your organization around a slew of meaningless, thankless, and soulless positions. Instead, ditch the unnecessary. Kill burdensome processes. And build roles that meet your strategic need but also stretch people - at all levels of the employee career cycle, from the most experienced to the freshest-from-school. Tip: remember, your top performers will need ways to develop in the organization. Provide growth opportunities that focus on growing their mastery and autonomy, not rank. Need an example? Give that top salesperson a All rights reserved PeopleFirm LLC 2014 bigger territory instead of making her a manager.
  • 17. Let’s recap. Driven by policy Over-engineered Not enough clarity = = All rights reserved PeopleFirm LLC 2014 Creates great jobs Enables collaboration Drives autonomy Supports your strategy Too many Managers evil. good.
  • 18. Tune in next month for PART 5: how to tune your performance management to make your organization great. All rights reserved PeopleFirm LLC 2014 Got all that? Think you’re done? Not so fast: if you don’t have your people working with you, you aren't going to get very far.
  • 19. your people = your success. Seattle ∙ Portland ∙ Vancouver, B.C. All rights reserved PeopleFirm LLC 2014 www.peoplefirm.com thanks for reading.