• Idea in brief format

     Gaps in the organizational structure make delivery of information from rank and file to top executives and vice versa inefficient. Unclear and/or overlapping functional responsibilities also result in a lack of accountability making it hard to gather and process true, verifiable and consolidated reports for presentations and use of management.


    A system and structure that will enable a seamless flow of information and processes from departments to help managers and supervisors acquire relevant information for better decision-making and reporting to top executives.
    Realignment of the table of organization will clearly define the responsibilities of every post and department, which improves accountability and better illustrates the chain of command. Proper knowledge transfer and change management, will fully utilize the newly implemented SAP-ERP thereby making available, centralized data to facilitate smoother transactions.



    The organizational structure presents certain gaps with respect to chain of command. The current table of organization has too many department heads reporting to the office of the president. Such structure makes it difficult for consolidation of information as well as ensuring better checks and balances. It also interrupts the strategic role of top executives in cases where they themselves would still have to get certain data from different departments.


    Another issue is unclear job descriptions. It brings about unorganized and sometimes overlapping functional responsibilities of job posts or even departments. In the case of customer interaction, the operations and management department usually have to address queries and complaints even if the company has a separate customer relations department. Some departments also have to do tasks requiring specialization that are non-core to their business and are supposed to be another’s responsibility just because of proximity. The confusion in responsibilities along with inefficient processes ultimately leads to the lack of accountability within the organization.


    The realignment of the company’s Table of Organization will address the issue on structure . The process arranges clearly defined job posts and departments with their respective functional responsibilities in such a way that the flow of information and management from and down to rank-and-file goes as smoothly and efficiently as possible. The improved chain of command would also result in better accountability, eventually allowing for improvements in other management tasks such as monitoring and performance evaluations.


    The company acquired and implemented the SAP-ERP, a well recognized system and representative of global best practices, to replace its old legacy system. However, acceptance and usage of the system has been slow. The issues center on the fact that most of the SAP trained staff, after their 2 year bond, have already left for other opportunities. Transition has been rough since there was no transfer of knowledge from those who were supposed to champion each module to those left in the company. The remaining programmers also had trouble handling the system due to lack of training.

    Compiling a masterlist was difficult since some modules were not yet implemented. The challenge of standardization, consolidation and reconciliation of information made it hard to bring about a seamless flow of data.


    There is also the issue of access authority/ restrictions or the lack thereof. The new system sometimes allow for viewing or even editing access to employees who are not supposed to have one, leading to troubles of making sure that information remains true and accurate at all times.


    With a cleary defined organizational structure, change management should be carried out for the SAP-ERP. Re-training of module champions should also be done if still needed. It is essential that knowledge be delivered as clear as possible. The transfer of technical knowledge, installation of system requirements, and the achievement of a buy-in from would be users, together with the implementation of all modules shall address the challenge of standardization and formation of a masterlist which will facilitate smoother and more efficient transactions.

    Posted on: June 30th, 2015 by READS Management Consulting