Subject areaProcess and organisation
Also known asorganisational structure
Organizational structure is how a company divides work among roles and functions, assigns responsibilities and sets who decides and who reports to whom.
The organisation chart is its graphic representation; the actual structure also includes information flows and coordination mechanisms.
Structure matters because tools deliver their full value only when built into an organisation aligned with its goals. A siloed structure slows information between marketing and sales; one that facilitates collaboration makes it flow. This is why the arrival of artificial intelligence leads to redesigning it, as the entry on the AI organisation chart describes, and a changing structure depends entirely on trust between people.
An example
In a machinery manufacturer, marketing and sales report to two different directors and talk only at quarterly meetings. Leads collected by marketing reach the sales reps weeks later: the delay comes from the organizational structure before it comes from the tools.
Related entries
broader entriesthis entry and narrowertwo levels down← up · → down
Enrico Giubertoni. Licensed under CC BY-NC 4.0: you may quote, translate and adapt this entry with the author’s name and a link, stating any changes. For commercial use, write to info@enricogiubertoni.com
Spotted an inaccuracy or something that needs updating? Write to info@enricogiubertoni.com and help make this glossary a better place.
What are your business challenges?
Tell us about your priorities and the objectives you want to reach.
You will receive a free, targeted answer within one working day.