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Things You Need to Know as You Grow

3 Signs Your Company Has Outgrown Its Organizational Structure

July 10, 20243 min read

There comes a time when your company may outgrow its current organizational structure. How can you know if that’s true? If you want to grow, here are 3 signs that you may need to adjust your company’s organizational structure.

Decorative LineSign 1: Team members are totally swamped with work.

You might think, “Having busy team members is a good thing, right?” Maybe, but not always. 

Being swamped with work is not the same as being productive. Sometimes being super busy are signs of inefficiency and misalignment. 

Companies that create a steady rhythm with work that properly fits their personnel tend to produce more and become more profitable. They also retain their employees longer.

No one wants to work for a company where everyday feels slammed. Doing so wears people out. A good leader keeps a close eye on the workload of team members.  He makes sure that the pace is manageable and repeatable. 

If you find that your people are regularly maxed out, it may be a sign that you need to rethink how you have set things up. 

It’s no fun to be constantly pressed. Team members will rise to busy times in the company but maintaining a constant “all-hands-on-deck” environment usually causes people to start looking for a new job.

Sign #2: Team members don’t enjoy most of what they do.

You might think, “Is it really important that people enjoy what they do?” If so, ask yourself this question: “Do you enjoy doing things you're really not good at doing?” My guess is probably not.

Workers do best when they align well with their assigned tasks. Everyone realizes he must do some things he doesn’t enjoy, but if a person finds himself doing most things he doesn’t enjoy, he will not last long. 

It might surprise you that many owners don’t really give their employees’ desires much thought. They assign them a task without really considering if their abilities or desires fit the task. The owner just wants the job done. He’s not that concerned about an employee’s personal desires.

Focusing on the task, rather than the employee, is a sure way to lose good people. Instead, work for a “win-win” result. The owner wins–the job gets done. The employee wins–he really enjoys and thrives at what he does. 

Employee alignment is really key to developing and retaining good workers. Ignore this, and you will pay a high price.

Sign #3: The leader feels he or she needs to touch everything.

Sometimes owners feel they need to touch every area in the company. While that sounds good, it usually is a sure sign that the company already is or soon will be “capped out.” By “capped out,” I mean it cannot grow anymore. 

When you start a company, you need to touch everything. You’re small, have limited resources, and are in the development stage. Starting a company requires the owner to be fully vested. 

Sadly, as companies grow, some owners continue to function like a startup company. They continue to personally touch everything. 

There are various reasons owners seek to maintain control. Some owners believe no one can do it the way they do it. Some owners are afraid someone will take advantage of them. Others have simply failed to develop their employees to do quality work. 

Regardless of the reason, attempting to touch every aspect of the company yourself will limit your company’s growth. You can’t grow because you are already maxed out. Additional growth will require more from you, and there is nothing left to give. 

If you want to grow, you need to restructure your company so that it is less dependent on you! Doing so will create space for growth and require less of the leader. Once you get the right people on the team, you might even find that there are people who do things better than you do.

Give deep thought to these signs. Your company may be experiencing growth pangs. You’ve likely known this for a while, but maybe you just didn’t know why. 

It’s hard to see things on your own. You are just too close to things. That’s where a good business coach can help.

If you want some objective help with your business, schedule a short call at the following link: https://penncoaching.com/meetwithdave. We will talk through your challenges and help you determine if it’s time to restructure.

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