If we approach organization as both a structure and a function we can come to an outcome. But this brings us back to an age old question: does structure determine function or does function determine strucuture?

Well...both actually, but getting there simply requires the act of reverse engineering the business to see it all happen. (Before doing this, you should read the definitions at the bottom of the article to clear up any misunderstanding about the topic and set firm in your mind what this is about).

To the owner or executive in charge of operations he or she must decide on what the business must do. Simply put: What is the end product of the business?

For example, if a business is to provide travel related services the end product would be (likely) a customer who has taken the trip of her life. She had the most remarkable time, took photos, made new friends, relaxed, felt like she actually "got away" for once, and did it all without one thing going wrong.

For that to happen, what must precede it?

You answer that question and make IT a function of the business, then assign someone the responsibilty to oversee it and carry it out. Optimize as you go.

Work that back (vertically on an organization chart) all the way to the owner or executive in charge and liaise laterally (across the chart) when needed until complete (e.g. sales tells accounts that they upsold the package deal and to relect a 10% prepay discount in the new invoice). Continue to optimize.

When doing this, magic can seemingly happen. Your organization comes to life and you begin to understand just what the business should look, produce, and function like.

Then amazing things happen.

Continue reading to find out what.

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