Why we decided to change the company structure

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In Russia, small and medium businesses face a number of challenges due to the changing economy: falling purchasing power, high interest rates and instability in external markets force them to adapt, requiring flexibility and quick decisions.

Traditional management models with a rigid hierarchy are unable to provide the necessary speed and flexibility in these conditions. A divisional management structure can be an alternative. Alexander Dvoeglazov, CEO of the landscaping company Fikus, talks about what it is and how to implement it.

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What is the difference between functional and divisional structures?
A divisional structure is a type of organizational structure afghanistan telegram in which a company is divided into divisions based on products, regions, or customers. Unlike a functional structure, where the organization is divided by functions (marketing, finance, production), divisions have greater autonomy, have their own resources, and have a management team.

Divisional structure

Classic divisional structure

We are engaged in interior landscaping of offices and public spaces, this business has its own specifics. We have project work, and from the start of the project to its delivery sometimes several years pass. So we need deep contact with each client.

The company has been around since 2009, and in 15 years we have grown from two to 150 employees. Our structure was formed gradually and in the course of the company's work. At first, everyone did everything, but later departments were formed and more specialized specialists appeared.

By 2021, the company's structure was as follows: each project had its own manager (RP), in addition, there were functional departments: sales, design, provision, accounting, legal department. When the development department received an order, it passed it on to the project manager, who was then responsible for its implementation.

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In practice, RPs faced many difficulties. In order to fulfill an order, RPs had to interact with all departments, each of which had its own management. It was the heads of departments who distributed the workload among specialists, based on their own considerations and without being fully immersed in a specific project and its specifics.

Project managers had competition for implementers and designers, and conflicts on the topic: “Why is he not working on my project, it’s more important and the deadlines are looming?”

The most difficult part of our business is sales. If you are selling one complex project and implementing another one at the same time, then in an attempt to achieve something from people from different teams, the RP's focus is blurred and the efficiency of the work decreases.

It was especially difficult for designers: it’s not just that each project manager is trying to squeeze more of his working hours, but also in the style of project management, communication, expectations from the visual component and much more.

All this created a tense emotional background, people had a hard time, they were burning out. In addition, we wanted to give RP the opportunity to grow: these are ambitious people, they could no longer be combined into one department, making one of them the head. I also wanted to return the sense of boutique style and full attention to each client that was lost with growth.

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