Knowing Versus Doing: Part 2: The Importance of Designing an Effective Organizational Structure

Note: This article was originally published by TCA Truckload Indexes and is part of a series discussing results from the recent Knowing-Doing Gap Survey.

When you contemplate the strengths of successful businesses, it is common to focus on a unique product or service offering or a creative marketing strategy that was used to gain market share. You may also think of strong leadership, those with the vision and courage to climb above the rest. However, we often forget to acknowledge the massive importance of organizational structure and design in the ongoing success and viability of a successful business.

The entire purpose of proper organizational design is to provide a physical and mental framework for people to produce high quality work in the least amount of time – eliminating unnecessary bureaucracy, inefficient processes, and bad pricing mechanisms while operating within ethical and regulatory boundaries.  A well-designed structure creates a culture of continuous improvement that will be embraced by future generations of company leaders.