Organizational Structures and Leadership Development

As contractors look at their organizational structures with an eye toward both sustainable growth and succession, they must balance the efficiency a functional area structure provides with the leadership development of a business unit structure.

D. Brown Management Profile Picture
Share

In a functional area structure, you avoid duplication of roles and individual functional areas such as estimating, purchasing, and field management are centralized. If executed effectively, this creates great efficiencies with the enabling bureaucracy required for scalability.

Succession: Organizational Structures and Leadership Development. A functional area organizational structure versus one aligned around business units down to a Project Manager. Levels of work including front-line execution, front-line supervision, process design and management, operations flow and integration, general business leadership. Stratified Systems Theory (SST).

For some contractors, it makes sense to break the business into smaller independent business units so broader general leadership skills can be developed and assessed. These individual business units are smaller and the job roles must be more fluid, which can be great for accelerating development and frustratingly messy at the same time.  

Just remember that compensation and accountability will not create competencies and both structures require deliberate development of the team.  

This is more challenging than we can cover in a short post. Please contact us if you want to further discuss the specifics of your organizational structure. 


Organizational Structures and Leadership Development
Continue building value in your business, yourself and your key team members with a good succession strategy....

Organizational Structures and Leadership Development
Continue building value in your business, yourself and your key team members with a good succession strategy....

Laws Control the Lesser Man
Growing construction businesses need processes and accountability systems the same way society needs laws, police, courts and jails. As a contractor starts growing leadership needs to put some processes in place to keep things running smooth.
Management Role Promotion Checklist (8 Steps)
Are you responsible for or involved in making the decisions about moving a person into a management role? Are you considering a move into a first-time, different, or higher-level management role? Use this 8-step checklist to help you evaluate.
Stop Doing Things - Peter F. Drucker
The tendency as a leader’s role evolves is to keep adding things to their list of responsibilities and to their team. What’s important is to regularly pause and reflect about what you can STOP doing to allow for new ideas if they are really better.