A founder hires key people. Managers are promoted. New functions are created. Responsibilities accumulate. Over time, the organisational chart can become a record of how the business developed rather than a deliberate design for what it now needs. That becomes particularly important when the business enters a new stage.
Start with the work, not the titles
Leadership design often begins with positions: Do we need a COO? Should sales report to the CEO? Do we need another general manager? Those may be useful questions later. The better starting point is:
What work needs to be led?
Consider:
- What decisions need to be made?
- Which outcomes need clear ownership?
- What capability is required?
- Where are existing leaders overloaded?
- Where do responsibilities overlap?
- Which issues are repeatedly escalating?
- What does the next stage of the business require?
This reframes leadership as an operating question rather than an organisational chart exercise.
More management is not always better
Adding another layer of management can sometimes solve a problem. It can also slow decision-making and blur accountability. The answer may instead be:
- clearer decision rights
- stronger functional leadership
- better management information
- improved meeting routines
- development of existing leaders
- a temporary increase in senior capacity
The important thing is to diagnose the gap before deciding on the structure.
Build the leadership model around the strategy
Leadership should support where the business is going. If the strategy involves significant growth, the business may need stronger commercial and operating capability. If succession is approaching, it may need to reduce dependence on the owner. If acquisitions are planned, integration capability may become important.
If the organisation is becoming more complex, clearer enterprise leadership may be needed across functions. The leadership model should therefore be connected to strategic priorities.
Make accountability visible
A good leadership structure should make it easier to answer:
- Who owns the result?
- Who makes the decision?
- Who provides input?
- What information is required?
- What issues need escalation?
When those answers are unclear, senior leaders often become involved in too many operational decisions. That creates dependency and slows the organisation down.
Develop capability, not just structure
Changing reporting lines will not automatically create stronger leadership. Capability may also need to develop. That can include:
- strategic thinking
- commercial judgement
- people leadership
- financial understanding
- decision-making
- operating discipline
The leadership team should be able to translate the organisation’s priorities into coordinated action.
Design for what comes next
The right leadership structure is not necessarily permanent. Businesses change. Markets change. Ownership changes. The structure should be appropriate for the organisation’s current and foreseeable needs, rather than treated as fixed. The useful question is:
Does the leadership model we have today give us the capability and accountability we need for what comes next?
If not, it may be time to review it deliberately rather than allow it to continue evolving by accident.