How Proper Architecture Can Help Reach Your Company KPIs

Introduction

The KPIs of your company are important to reach, but the organisational design of your company can make a big difference in whether they’re reached or not. Let’s look at some ideas together!

The organisational pyramid

The organisational pyramid is a common organisational design. It consists of three levels: the top level, middle level, and bottom level.

The top level includes leaders who have full authority over the company’s direction, mission, and goals; the middle tier consists of managers who are in charge of groups in an organisation; finally, people on the bottom rung work directly with customers or suppliers.

The key difference between this model and others is that it places more emphasis on relationships between individuals than on traditional hierarchies. This can result in more effective decision-making processes because it offers multiple perspectives on given problems or issues instead of only one person’s opinion being considered (e.g., a problem may be solved by someone other than their supervisor).

Functional organisations

A functional organisation is one in which different functions are separated into different departments. Each department is headed by a manager who reports to a functional manager. Let’s take a look at an example of this type of organisation, and see how it can be beneficial for your company.

As you can see, the functional structure above separates the various parts of the business into separate departments: marketing, sales and operations. The head of each department then reports to their own respective functional managers (marketing director reports to CEO/chairman; sales director reports to Marketing Director).

In general, organisations that adopt this approach benefit from improved decision making because each area has its own leader who is responsible for allocating resources accordingly – they should therefore be able to focus on what matters most without having too many distractions or outside influences affecting their decisions. This creates clear lines of communication between departments which helps achieve efficiency within them as well as between them at large levels across different teams working together within one another’s domains when necessary (e.g., Marketing Team needs Sales Team’s help in order execute on some campaign launch plans).

However there are also disadvantages associated with this setup where its benefits may not outweigh its costs:

Matrix organisations

Matrix organisations are the most common form of organisation structure. They can be used to help achieve organisational goals, implement organisational change and drive performance improvement.

For example, if you have a matrix organisation where your product development teams report to both the sales and marketing departments, this may help drive revenue growth (by improving customer satisfaction) while also improving cost efficiency (by reducing time spent on unnecessary tasks).

Hybrid organisations

Hybrid organisations are a best-of-both-worlds approach to business. They offer the right balance of centralisation and decentralisation, top-down and bottom-up decision making, central control and decentralised management.

By implementing this type of organisation, you can create a structure that provides the best practices and expertise from both traditional hierarchical structures as well as democratic ones.

A well-designed organisation can help you reach any goal.

A well-designed organisation can help you reach any goal.

Organisation design is a key part of business strategy and should be thought of as an ongoing effort to align people and processes to a common goal. It involves three separate activities: designing the structure, designing the workflows and designing performance management processes. The goal is not to create an ideal organisation but rather one that will allow your company to achieve its strategic goals most effectively, given its unique circumstances and constraints.

Conclusion

As we’ve seen, the best way to set up your organisation is going to depend on many factors. What you need for your organisation in the future should be a topic of conversation as much as what you need from it now. In order to do that effectively, you have to choose a structure that works for all parts of the company, not just one or two. While there are many proven approaches available, don’t be afraid to experiment with new ideas and processes until you find something that suits everyone’s needs!