Think of all the different ways we can listen to music, from solo artists to small bands to an orchestra and everything in between. What I find most interesting about this comparison is that we don’t compare one ensemble to another, saying one is better than another. The same could be said about organizational structures, whether functional, divisional, matrix, flat, hierarchical, or some hybrid. Like musical ensembles, the question we ask is: how are they performing?

The Organization on Paper Is Only the Beginning

Anyone who has worked in a large organization knows that every organization has a formal structure. It includes leaders, departments, teams, positions, reporting relationships, roles, responsibilities, policies, systems, and processes. In larger organizations, much of this appears in organizational charts, job descriptions, policies, standard operating procedures, and other formal documents. These matter, but they tell only part of the story; there is also the informal side of the organization.

The organizational chart shows where information is supposed to flow. The people inside the organization show where it actually flows. The formal organization establishes structure and authority. The informal organization develops through relationships, experience, expertise, trust, reputation, culture, and necessity. Leaders who understand only the formal organization may know who is supposed to make something happen but not who can. That distinction becomes increasingly important as organizations grow larger and more complex.

What is the Best Organizational Structure?

I’m reminded of the idea that everything is relative, meaning everything is relative to your experiences and where you’re sitting. What I mean by this is that some people prefer organizational structures they enjoyed working in and dislike structures they didn’t. Although what a person enjoys should be a point of consideration, the real test of any organization is its performance measured against its mission and goals.

The point of this article is not to explain specific organizational structures or to say which is best for one reason or another. They all have pros and cons. Instead, I was hoping to explore the importance of recognizing different structures and formal and informal information flows, and how an appreciation of these points can impact a person’s success and the success of the organization itself.

It’s important for any leader to understand their organizational structure, the formal and informal relationships, and the systems and processes because, by understanding and leveraging these, a leader can do their job more efficiently and effectively.

What Organizational Structure Means to You.

If you’re the lead on an initiative, understanding how to navigate the formal and informal organization can mean the difference between success and failure.

If you’re looking for a promotion, whether for better pay or greater responsibility, understanding where the organization is growing, changing, or downsizing can help you recognize opportunities rather than simply waiting for them to appear.

If you’re responsible for process improvement, understanding the departments around you, how they interact, and where information needs to flow can mean the difference between creating a more efficient and effective system and creating another system that doesn’t improve the situation much.

If you’re simply trying to do your job well, understanding where you fit within the organization, who depends on your work, and whose work you depend on can help you work more effectively.

Where you sit shapes what you see. Understanding organizational structure helps you see beyond the seat you’re currently sitting in.

How to Become Organizationally Aware.

My favorite way to become organizationally aware is to drink lots of coffee and eat lunch every day. What I mean by this approach is that whenever I found myself in a position where I didn’t know the people I worked with—or might one day work with—I would try to set up a coffee or lunch meeting. We would get to know each other and share details about our roles and responsibilities. I think it’s important to note that this wasn’t a networking exercise. I was intentionally learning about the departments, agencies, and people I worked with. The networking was a byproduct of becoming organizationally aware.

My experience was profound. Over the years, I made friends and connections I never would have if I had stayed in my workspace. What started as a simple coffee connection became friendships, and friends help each other. On countless occasions, friends would reach out to me, and I would reach out to them, and together we would help each other solve some really difficult challenges. And on occasion, we would catch a sporting event together. On a related note, I’ve never heard anyone say, “I have too many friends.” At the risk of sounding like a commercial, developing relationships with colleagues is literally priceless.

Those conversations also helped me understand parts of the organization I couldn’t see from my own seat, including what other departments did, the challenges they faced, and how our work affected each other.

RuReady Framework Connection

This article is the second in the LK08 Organizational Awareness series within the Leadership Domain of the RuReady Adult Readiness Framework. It focuses on organizational structure, how people, authority, information, and responsibilities are arranged, and why understanding both the formal and informal organization matters.

If you haven’t already, explore Organizational Awareness: Understanding How Organizations Really Work for the broader concept. The series continues with Organizational Roles and Responsibilities: How Work Really Gets Done.

Explore the complete series:
Skill (US03.01): Time and Task Management Workflow
Skill (US03.02): Time and Task Management Workflow: The What
Skill (US03.03): Time and Task Management Workflow: The Self
Skill (US03.04): Time and Task Management Workflow: The When
Skill (US03.05): Time and Task Management Workflow: Only Do What Only You Can Do

If you enjoyed this article, explore the broader RuReady Adult Readiness Framework:

Preface: A Field Manual for Adult Life
Chapter 1: Why Do We Do What We Do?
Chapter 2: An Exploration of the RuReady Framework
Chapter 3: Life Skills for the Personal Domain
Chapter 4: Career Skills for the Professional Domain
Chapter 5: Leadership Skills for Every Level

Before moving on, feel free to use the checklist below to assess your readiness level.