Organizational Structure Planning

Document Type: Guide
Version: 1.0
Last Updated: February 2026
Distribute To: Owner, CEO, HR Director

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Purpose

Provide guidance on organizational structure design and evolution to support company growth, efficiency, and strategic objectives.

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Why Structure Matters

Good Structure Enables:

• Clear accountability
• Efficient decision making
• Scalability
• Career paths for employees
• Appropriate spans of control
• Effective communication

Signs of Structure Problems:

• Unclear reporting relationships
• Decisions bottlenecked
• People wearing too many hats
• Growth constrained by key people
• Silos and communication gaps
• Accountability gaps

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Construction Company Structures

Structure by Company Size:

Small (under $5M revenue):

                    Owner
                      │
        ┌─────────────┼─────────────┐
        │             │             │
    Estimating   Project Mgmt   Admin/Accounting
                      │
                    Field

Mid-Size ($5-25M revenue):

                    Owner/CEO
                      │
        ┌─────────────┼─────────────┐
        │             │             │
   VP Operations   Controller    BD/Estimating
        │             │             │
   Project Mgrs   Accounting    Estimators
        │
   Superintendents
        │
     Foremen

Larger ($25M+ revenue):

                      CEO
                       │
    ┌──────────┬───────┼───────┬──────────┐
    │          │       │       │          │
   COO        CFO    VP BD   VP Safety  VP HR
    │          │       │       │          │
 Div Mgrs  Controller Estimating Safety Mgrs  HR
    │          │       │                     │
  PMs     Accounting  BD Reps              Payroll
    │
 Supers

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Role Definition Template

Position Profile:

================================================================
         POSITION PROFILE
================================================================

Position Title: _______________________
Department: _______________________
Reports To: _______________________
Direct Reports: _______________________

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PURPOSE:

Why does this position exist?
___________________________________________________________

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KEY RESPONSIBILITIES:

1. _______________________________________________________
   Time allocation: _____%
   
2. _______________________________________________________
   Time allocation: _____%
   
3. _______________________________________________________
   Time allocation: _____%
   
4. _______________________________________________________
   Time allocation: _____%

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AUTHORITY LEVELS:

| Decision Type | Authority | Limit |
|---------------|-----------|-------|
| Spending | ☐ Approve ☐ Recommend | $_____ |
| Hiring | ☐ Approve ☐ Recommend | |
| Pricing | ☐ Approve ☐ Recommend | |
| Client commitments | ☐ Approve ☐ Recommend | |

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QUALIFICATIONS:

Required:
- _______________________________________________________
- _______________________________________________________

Preferred:
- _______________________________________________________

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SUCCESS METRICS:

| Metric | Target |
|--------|--------|
|        |        |

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Span of Control Guidelines

Optimal Spans:

Level	Typical Span	Factors
Executive	4-7	Strategic complexity
Manager	5-10	Nature of work
Supervisor	8-15	Work standardization
Foreman	10-20	Task similarity

When to Adjust:

Wider span possible when:

• Work is routine/standardized
• Staff is experienced
• Good systems in place
• Low task interdependence

Narrower span needed when:

• Work is complex/varied
• Staff is developing
• High coordination required
• Problems frequent

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Restructuring Analysis

Restructuring Trigger Assessment:

================================================================
         RESTRUCTURING ASSESSMENT
================================================================

Date: _______________

================================================================

TRIGGER INDICATORS:

| Indicator | Issue Present? | Severity |
|-----------|----------------|----------|
| Growth outpacing structure | ☐ Yes | H/M/L |
| Key person overload | ☐ Yes | H/M/L |
| Decision bottlenecks | ☐ Yes | H/M/L |
| Accountability gaps | ☐ Yes | H/M/L |
| Communication breakdowns | ☐ Yes | H/M/L |
| Talent retention issues | ☐ Yes | H/M/L |
| New strategic direction | ☐ Yes | H/M/L |

Restructuring recommended: ☐ Yes  ☐ No

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CURRENT STRUCTURE ISSUES:

Issue 1: _______________________________________________________
Impact: _______________________________________________________
Solution: _______________________________________________________

Issue 2: _______________________________________________________
Impact: _______________________________________________________
Solution: _______________________________________________________

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PROPOSED CHANGES:

| Current State | Proposed State | Rationale |
|---------------|----------------|-----------|
|               |                |           |

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Structure Evolution by Growth Stage

Growth Stage Requirements:

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         STRUCTURE EVOLUTION PLAN
================================================================

Current revenue: $_________________
Current stage: _______________________

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STAGE 1: STARTUP (under $2M)
Owner does everything
Key roles: Owner, Admin, Field

Transition trigger: Owner can't handle all responsibilities

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STAGE 2: EMERGING ($2-5M)
Add functional specialists
Key additions: Dedicated estimator, PM, bookkeeper

Transition trigger: Need management layer

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STAGE 3: ESTABLISHED ($5-15M)
Functional organization
Key additions: Controller, Operations Manager, BD

Transition trigger: Specialization needed

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STAGE 4: GROWTH ($15-50M)
Department structure
Key additions: VPs/Directors, HR, Safety director

Transition trigger: Multiple business units or markets

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STAGE 5: ENTERPRISE ($50M+)
Divisional structure
Key additions: Division managers, support functions

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YOUR TRANSITION PLAN:

Current stage: _______________________
Next stage: _______________________
Revenue trigger: $_________________
Timeline: _______________________

Key positions to add:
1. _______________________  By: _______________________
2. _______________________  By: _______________________
3. _______________________  By: _______________________

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Organizational Chart Template

Standard Format:

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         ORGANIZATIONAL CHART
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Company: _______________________
Effective Date: _______________________
Total Employees: _______

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[Insert organizational chart here]

Each box should include:
- Position title
- Name of incumbent (if filled)
- Key metrics (# direct reports, revenue responsibility)

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LEGEND:

□ Executive level
□ Management level
□ Supervisor level
□ Individual contributor

Solid line: Direct report
Dotted line: Matrix/functional relationship

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Roles and Responsibilities Matrix (RACI)

RACI Chart:

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         RACI MATRIX
================================================================

R = Responsible (does the work)
A = Accountable (owns the outcome)
C = Consulted (provides input)
I = Informed (needs to know)

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| Activity | Owner | CEO | COO | CFO | PM | Super |
|----------|-------|-----|-----|-----|----|----|
| Strategic planning | A | R | C | C | I | I |
| Annual budget | A | C | C | R | C | I |
| Bid decisions | A | C | R | C | C | I |
| Hiring (field) | I | I | A | I | C | R |
| Hiring (office) | A | C | C | C | I | I |
| Safety program | I | I | A | I | C | R |
| Client relationships | I | R | C | I | R | C |
| Project execution | I | I | A | I | R | R |
| Financial reporting | I | C | I | A | C | I |
| Change orders | I | I | C | C | A | R |

================================================================

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Common Structure Mistakes

Avoid:

Mistake	Problem	Solution
Owner in all decisions	Bottleneck	Delegate with authority
Too many direct reports	No time for anyone	Add management layer
Unclear reporting	Confusion	Define clearly
Missing functions	Gaps	Identify and fill
Over-structured	Bureaucracy	Keep lean
Under-structured	Chaos	Add needed roles
Poor role definition	Overlap/gaps	Clear job descriptions

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Implementation Checklist

Restructuring Implementation:

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         RESTRUCTURING IMPLEMENTATION
================================================================

☐ Document current structure
☐ Define future structure
☐ Identify changes needed
☐ Develop role definitions
☐ Create communication plan
☐ Meet with affected individuals
☐ Announce changes
☐ Update org chart
☐ Revise reporting relationships
☐ Adjust systems (email, approvals, etc.)
☐ Monitor transition
☐ Address issues
☐ Evaluate effectiveness

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Related Documents

• Succession Planning
• Capacity Planning
• Strategic Planning
• Key Person Risk Management

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Template provided by support.construction. Structure follows strategy—design for where you're going.