Organisational structures have altered considerably over the past few years, rendering many business models outdated. Most companies have had to embrace globalisation as a means of remaining in business. The previous rigid hierarchical structures are no longer effective as permanent workforces have been replaced with more transient models leading to a rethink on traditional corporate structures.
Success is no longer defined by position or title. Organisations have eradicated layers of management, and bureaucracy, increasingly held to account, is rarely tolerated. Knowledge sharing is actively encouraged, work more global, region, project or virtually based, and, above all, collaboration is a prerequisite.
New management structures are evolving, in particular, matrix and lattice styles which provide growth in many different locations, vertical markets and directions to support expansion. This enables employees to develop their careers laterally, diagonally, upwards or downwards, meaning they have many more opportunities to design a career to suit their personal circumstances.
The impact of placing the wrong person in a role is huge - loss of productivity and revenue, potential for jeopardising key client relationships, wasted management time and lack of forward innovation. The cost to a business has been estimated at somewhere in the region of three times the annual salary.