Organizational Structure

Agree with Keith on HR. It is internal. Our company's HRC reports to the Controller. We are a smaller company and our CFO is focused on things that are not related to the operations side. Whereas the company I used to work for was very large. The HRC was actually a HR Director and reported to the CFO and CEO.

How is the CEO defining operations? Are operations how the company operates internally, referring to what Keith mentions above, or does it refer to the vendors and customers for which the company operates with?

Operations would be external - customers. I guess I have just always dealt with vendors as an accounting / finance "internal" function. I understand both sides of it. I really didn't understand the HRC reporting to the DSO, except in the CEO's mind she is primarily staffing the stores, so he is probably thinking that doesn't have anything directly to do with my role.

We've been in the growth stage but have just sort of toppled over the edge where many positions can no longer functionally wear multiple hats without starting to see systems falter.

This new position is going to have a full plate coming on board as well; effectively overseeing eleven stores will not be an easy function. We have eleven differing level of leadership and our DMs are still learning to be effective with their current leaders. We have a strong need to re-design our front line training, which will take some work.

I have a strong team and strong processes in place and of course I am going to be concerned splitting my team and not having such a tight grasp on the dynamics of how it will work has me a little nervous. I would almost be more comfortable getting this person trained and observing their capabilities before transitioning inventory & purchasing to them.

A matrix like reporting structure seems reasonable. I would add for the HR role to be more effective in supporting operations, it would typically "reside" in the function/department of the "internal customers". You want them to have a pulse of what is going on with the client group. Having solid line to ops and dotted line to Finance/Corporate support department for policy/compliance guidance would be recommended. Hope this helps.

Three thoughts come to mind in this discussion:

1) "Eleven differing levels of leadership": Uh oh! That's way too many in an organization your size. Things should be tightened up.

2) The CEO seeing the new DSO as "primarily staffing the stores" and thus taking on the HR function. I sense trouble ahead Will Robinson. HR's goal is to protect the organization from employment related issues. Having a hiring manager fulfill that role is fraught with peril. The HR function should remain distant from direct hiring and train the managers to make good hiring and employee management decisions that protect the organization.

3) Matrix reporting: BTDT. Not a fan. Employees cannot serve two masters. In my experience, this stresses out high performing employees, leads to conflict amongst the managers and ends up with good employees leaving to find employment where their role is more well defined so they can get something constructive done and not feel like the rag doll being pulled from several sides by aggressive managers seeking their labor.