| | March 20178CIOReviewAlthough it is probably true that there is no perfect IT organizational structure, there are one or two basic organizational structures that offer the best chance of achieving efficiency and effectiveness. Yet, more often than not, we find IT organizations with illogical reporting lines and departmental structures that cannot be justified, "organizational anomalies."The reasons why these anomalies occur usually involve something along the lines of "it has always been set up like this" or "that's just the way it is." Which is probably true, because organizational structures tend to have inertia. A lot of inertia. A CIO needs to constantly assess and review their organizational structure to see if it can be improved. Avoid change for change's sake (employees tend to appreciate some organizational stability), but don't be afraid of confronting anomalies head on, and lobbying for a re-org when needed. Many CIOs (rightly) spend a considerable part of their time on recruitment, building the team, but they fail to spend time creating the best possible IT structure to support their business. They hire highly talented and capable people, and then put them into an organizational structure that perhaps does not guarantee they will fail, but makes consistent success unlikely. You need both elements to succeed: talented people working in an optimized organizational structure.In the world of sport you can sometimes build an entire team around a single superstar individual, but in an IT organization that is not a viable option. Optimal IT organizational structures are not tailored to fit individuals. The objective is to define the clearest, best possible organizational structure, and then assign individuals to the structure.There should be no ambiguity in this structure. Lines of responsibility, accountability and authority should be clear to both staff and management. If the answer to "Who is responsible?" is a number of individuals, then a reorg is needed. A well-functioning organization also must follow and mirror the corporate culture. If the corporate culture allows regional freedom with few corporate standards imposed, then a centralized IT organizational structure that attempts to function with global standards will cause conflicts. But fully centralizing IT teams into a headquarters location will nearly always lead to failure. Instead, companies should work toward achieving the correct balance between regional flexibility and global standards. The IT organization needs to implement virtual global teams, and for that, managers that can think and operate both locally and globally. Most people like working with clarity. Not rigidity, but clarity. Knowing what they are responsible for Want Organizational Efficiency? Don't Be Afraid to ReorganizeBy Colin Boyd, CIO, Joy Global Colin BoydIN MY OPINION
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