In addition, people realized that they themselves can change the environment around them by participating in cross-functional circles (for example, a circle of training, sports, a knowledge base, etc.). Employees themselves say that working in additional circles gives them the opportunity to try themselves in something new, allows them to avoid burnout and provides real opportunities for growth and development.
There is less bureaucracy: the speed and flexibility of decision-making have increased. Firstly, there are no longer any areas for which no one is responsible, and secondly, if a problem arises within the project group, it is solved much faster. Decisions become better quality, as they are made from below.
After project team leaders gained increased authority and responsibility, they began to handle many more projects. Project teams compete, but this is healthy competition between teams, not constant interpersonal conflicts.
The groups themselves turned out to be very diverse in format, each of them is practically a small landscaping company.
Hours that could previously be spent on approvals and reports have been freed up, and we have been able to direct them to communicating with the client, which allows us to build long-term relationships with them and increase conversion - including because it helps the client choose to work with us for us, and not just for the most favorable estimate.
Over the past three years, we have increased the minimum check from 300 thousand to 1 million, and more than 300 projects are in progress at various stages. At the same time, large projects do not paralyze the company: on average, each PG can manage up to 60 projects at a time.
The company's annual turnover increased from 290 million australia telegram to 530 million. The team also increased: from about 40 office employees, we grew to 52 people (another 100 people work in the field team of biologists). The share of the payroll from revenue remained approximately the same, but the average salary increased.
We recently conducted a study on how people experience these changes: we conducted about 10 in-depth interviews and a survey of employees who participated in and witnessed the changes.
In addition, we asked about opportunities for career growth, work-life balance, trust in colleagues and other characteristics of the comfort of the work environment: changes were positive everywhere.
Conclusions
Moving to a divisional structure isn't right for every business, but if you can adapt the model to your needs and implement the changes wisely, the results can be impressive.
Increased employee motivation and autonomy will lead to increased engagement and quality of work, including more effective interaction with customers. This will also be influenced by the fact that each division will be able to focus on specific products, customers or regions, which will allow it to better meet the needs of target market segments.
A flexible structure that allows for quick response to market changes will enhance the company's competitiveness. Resource optimization and reduction of approval time will increase the speed of work without reducing quality.
All together, this will lead to increased profitability and revenues - and this will be a logical consequence of the changes, and not the main goal of the company. The goal should be the global changes in the world that your business is capable of making.
Employees' attitudes towards the transition to the new structure
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