How to Optimize Your Corporate Structure

Four Steps to a Lean Corporate Structure

Your corporate structure is all about corporate objects. Products, brands, assets, functional units (departments), SBU, regional branches, employees, etc. A lean organization must have no redundant objects (‘no fat’) and no missing objects (all ‘limbs’ must be in place).

Therefore, you will optimize your corporate structure and make it lean in four steps:

-     Identify and visualize all your corporate objects (it is a comprehensive analysis)

-     Identify & eliminate redundant objects (‘cut fat’)

-     Identify & add missing objects (‘add limbs’)

-     Integrate your objects in the most efficient & natural way

       

Corporate Objects Maps

In order to identify missing and redundant objects, you will need some kind of a yardstick, a benchmark, a template, a blueprint, a ‘map’ to compare your corporate structure to. You must always remember that in order to build a truly lean organization, you must develop, analyze and optimize the truly comprehensive corporate structure that includes all corporate objects in your company – and not just functional units and personnel that the ‘classic’ organization chart does.

Fortunately, such map exists. It is called a Comprehensive Corporate Objects Map. It visualizes and integrates in a natural, easy-to-understand and easy-to-use way all you key corporate objects – both simple objects (e.g. corporate financial plan), composite objects (e.g. SBU or regional branches) and object portfolios (e.g. brands or products). No wonder it is also called the ‘Key Business Management Diagram’ (KBMD). To analyze in detail a composite object or an object portfolio, you will need a corresponding decomposition diagram.

Using KBMD and its decomposition diagrams as a reference, you must develop the comprehensive corporate objects map for your company. Which will immediately visualize (1) the missing objects that you must add to your corporate structure; (2) redundant objects that you must remove and (3) the right way to structure your business entity. 

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