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Also, I have been asked by some of my clients what is the right organizational structure for their business.

As you may know that there are many types of organizational structures which are;

1. Hierarchical structure – the organization relies on a vertical chain of command

2. Functional organizational structure – the organization relies on an operational expertise

3. Product organizational structure – the organization relies on products that are marketed and sold

4. Customer organizational structure – the organization relies on groups or segments of customers

5. Geographic organizational structure – the organization relies on area or region

6. Complex organizational structure – the organization that mixes across function, customer, and product, and so on.

However, the question from my clients is what is a suitable one for their business. It is the question that we cannot give the answer right away or decide to pick up one from the above types immediately unless they have to consider the five essential things below. Here is my suggestion to my clients.

1. Business direction – what is the vision, mission, trend, and strategy of your business. The organization is one of the business strategies. It’s as important as doing a marketing plan. The right organizational structure can help the business move fast and help to support rapid growth in the future.

2. Communication effectiveness – if the communication is your main focus within the company, you have to consider the organizational structure that reduces a silo working, choose a type that help to collaborate more with other teams or departments.

3. Suitable Workload – the best organizational structure should not put too much works to some teams or some departments, especially with some top management. Too much works may cause to work efficiency, and the company may not move fast as planned.

4. Reasonable Position – the right organizational structure should support the employee’s career path.

5. Rely on a Company Strategy, not a Person – try not to design the organizational structure that relies on some individual staffs, the excellent organizational structure should depend on the company’s core strategy.

In conclusion, these are what I try to give my clients the answer about what is the excellent organizational structure that suits best for them. We have to consider and think about our business strategies, visions, missions and trends, and also our staffs and culture of our company. When we have the answers, then we will work on it. Importantly, we cannot just duplicate the other company to fit with our company.