The 3rd component - Organization Structure for Sustainment

May 3, 2023 www.leanteamsusa.com

Robert BairdPresident

+1 215 353 0696

The 3rd ComponentOrganization Structure for Sustainment

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Hierarchy Organizations• Are they effective enough for todays fast changing markets?• Is it fear that prevents us from going forward?

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Hierarchy organizations started in 1800’s• Even earlier if you consider the management of ancient slaves• Remains pervasive for today’s organizations • Quickly adopted by military as a method to make certain chain of command• Collaboration is difficult and, for the most part, is not promoted or supported

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Hierarchy’s are slower paced• Because of bureaucracy• Because of knowledge hoarding• Because of departmental biases (Silos)• Because of unwarranted authorizations

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Strategy objectives become partisan• Tenuous connections throughout lower levels• Silo Effect (biased)• The effect of message starting from top of organization

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Organization layers prevent message penetration• Message penetration - A key input towards employee engagement• Mostly “noise” by the time it reaches Value Stream Workers • Each layer creates wasted time in starting correct improvement actions

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Great ideas are generated through collaboration • Not through individual ideas • They require a structure conducive to idea germination• Employees are then able to contribute• Hierarchy structures thwart idea germination • Most decisions are made and accepted at the top in Hierarchy organizations

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STRUCTURAL WASTE?

COMBINE OR REMOVE LAYERS

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DOING THE SAME THING OVER & OVER…

THERE ARE BETTER STRUCTURES

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Value Stream Flow

Structure with less layers• Based on skill and ability (value add)• Designed for speed • Based on empowered teams with the process providing articulation• All functions of the enterprise collaborate and are enabled to• The main connection and motivation is the achievement of the strategy

Executive Team

Process Team 1

Process Team 2

Process Team 3

Local Leadership Team

Sales Team

Customer

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A less layered system

Executive Leadership

Local Leadership

• Simple, supported, and improved throughout, connection maintained• Executive team determines business strategy (same as Hierarchy)• Local Leadership is a team of what was Department Managers and the

Location Manager• Prototype solutions are developed through collaboration with Self-

Directed Teamswww.leanteamsusa.com

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Leadership teams – Support, Teach, and Promote• Visual Management• Gemba walk with purpose and value• Build strategy deployment momentum• We win or lose together

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Self-Directed Process Teams• Defined levels of empowerment• Defined individual career paths through to Leadership Teams• Continuously improves value stream• Responsible for individual development within their teams• Budget responsibilities

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Sales Team• Partnerships• Share customer value and knowledge direct to value streams• Customer involvement within complete product development

process• Complaint resolution in collaboration with teams

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DIRECTLESS LAYERSHEIARCHYCOMPASION

SLOW PACE FAST PACE

COMMAND COLLABORATIONDIS-CONNECT CONNECTED

SILO SHARED VISIONKNOWLEDGE CACHE KNOWLEDGE SHARE

COMPLIANCE AUDACIOUS

STRUCTURES INFLUENCE ENVIRONMENT

Contact Us • Lean Teams USA Lean Consulting

• View My Profile on LinkedIn

• Lean Teams USA +1 215 353 0696

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