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Your Org Structure Is Costing You More Than You Think (And It's Not Your People's Fault!)

Discover why your team might not be the problem—it’s your structure. Uncover the costly myths around 'bad hires' and learn how the wrong organizational structure drains productivity, innovation, and profits.

Sel Watts - CEO, wattsnextpx
Sel Watts
CEO, wattsnextpx · 
September 4, 2024
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Picture this: A talented team, ambitious goals, and a business that's growing - yet something's not quite clicking. Tasks are falling through cracks, decisions are stuck in limbo, and your best people seem to be struggling. Sound familiar?

If you're nodding your head, I've got news for you - you don't have a people problem. You have a structure problem.

The Expensive Myth of "Bad Hires"

Here's what I see all the time: A business grows, things get messy, performance drops, and suddenly everyone's pointing fingers at "underperforming" team members. But here's the truth bomb - 90% of the time, you don't have a people problem. You have a structure problem.

Think about it:

  • Your rock star marketing manager is drowning in admin tasks
  • Your brilliant tech lead is stuck in endless management meetings
  • Your top salesperson is writing operational procedures
  • Your CFO is doing basic bookkeeping

And you're wondering why they're not performing at their best? Please!

The Real Cost of Wrong Structure

Let's talk money (because that usually gets attention!). When your organizational structure is wrong, you're not just losing productivity - you're bleeding cash:

  1. Hidden Costs:
  2. a) High performers operating at 50% capacity
  3. b) Duplicate work across departments
  4. c) Decision bottlenecks slowing everything down
  5. d) Skills and talents going completely unused
  6. e)Innovation dying in bureaucratic crossfire
  7. The Talent Trap:
  8. a) You hire amazing people
  9. b) Put them in the wrong role structure
  10. c) Watch them underperform
  11. d) Blame them for not delivering
  12. e) Lose them to competitors
  13. f) Repeat the cycle

Sound familiar?

Signs Your Structure Needs Surgery

  1. The "That's Not My Job But I'll Do It Anyway" Syndrome
  2. a) Everyone's doing everything
  3. b) Nobody's doing anything well
  4. c) Job descriptions are fantasy documents
  5. The Meeting Epidemic
  6. a) Every decision needs 12 people
  7. b) Nobody knows who can actually say "yes"
  8. c) Simple projects take months
  9. The Skills Waste
  10. a) Your best people spend 80% of their time on tasks they hate
  11. b) Talented specialists are doing generic work
  12. c) Everyone's a "manager" but nothing gets managed


Why Nobody Fixes It

"But we've always done it this way!" "We're too busy to reorganize!" "It's working fine!" (Narrator: It wasn't working fine)

Here's the truth - reviewing and adjusting your organizational structure should be as regular as checking your financial statements. Your business at $1M revenue needs a different structure than at $5M, and wildly different at $10M.

The Growth Structure Checklist

Ask yourself:

  1. Does your structure reflect where you're going, or where you've been?
  2. Are your best people spending most of their time on their best skills?
  3. Can decisions be made quickly and clearly?
  4. Does every role have clear ownership and authority?
  5. Is your structure helping or hindering your growth?

The Bold Move Forward

Here's what you need to do:

  1. Map Your Reality
  2. a) Document what people actually do (not their job titles)
  3. b) Track where decisions get stuck
  4. c) Identify skill wastage
  5. Design for Growth
  6. a) Structure for where you're going, not where you are
  7. b) Create clear decision-making pathways
  8. c) Match skills to roles (not the other way around)
  9. Get Brutal
  10. a) Kill redundant roles
  11. b) Eliminate unnecessary approval layers
  12. c) Move people where their skills shine

The Uncomfortable Truth

Your organizational structure should feel slightly uncomfortable - because it should be built for where you're growing to, not where you are. If it feels cozy, it's probably holding you back.

Remember:

  • Great people in a bad structure will fail
  • Average people in a great structure can thrive
  • But great people in a great structure? That's where the magic happens

Stop blaming your people for structural problems. Have the courage to fix the real issue.

Because your organizational structure isn't just a bunch of boxes on a chart - it's either your growth engine or your growth ceiling.

Which one is yours?

Let's talk about your organizational structure. Is it supporting your growth or secretly sabotaging it?

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