Organizational structures are an integral part of any business, allowing for efficient operations and clear communication between members of a team. As technology has become an increasingly important factor in the success of any organization, the structure of that organization must be adapted to meet the changing needs of the technology. As such, it is important to consider the impact of IT organizational structure on the overall success of a business. This blog post will explore the various elements of IT organizational structure and how they can be used to create a cohesive and successful IT environment. We will look at the different types of IT structure, their advantages and disadvantages, and how they can be applied to create a successful and efficient IT organization. Additionally, we will discuss how IT organizational structure can be used to support the strategic goals of a business. Finally, we will consider what challenges may arise and how to best meet them.
ITIL® Service Operations Organization Structures
Why is organizational structure important in IT?
Here are some of the various factors that make organizational structure crucial in IT:
What is an IT organizational structure?
An organization’s method of allocating and coordinating tasks within its IT department is referred to as its information technology (IT) organizational structure. By defining specific roles and responsibilities and maximizing the use of IT policies, systems, and procedures, organizational structure contributes to the efficiency of operations.
Types of IT organizational structures
Depending on the needs of the team, IT departments may use a single organizational structure or combine multiple organizational structures. You might come across the following various IT organizational structure types in your department:
Functional organizational structure
The most prevalent type of organizational structure in IT is based on the job functions of each IT professional within their department. Professionals with a higher level of skills and IT experience are at the top of the structure, followed by those with less IT experience. The lead IT professional, who is typically an IT manager who directs IT technicians, is the first. Then, associate IT employees may report to those technicians.
Independent service line structure
Each team within an IT department, commonly referred to as a service line, is able to manage their own software, hardware, and staffing thanks to the independent service line structure. A service line typically consists of an IT manager who supervises a number of IT technicians, each of whom has a set of daily responsibilities. They might provide client consultations, create new software, maintain technological systems, and improve software features. Utilizing independent service lines will increase your department’s independence and give you more control over your duties and decisions.
Leveraged structure
Leveraged structures involve the use of outside resources, such as management, software or hardware experts, customer management, and applications support, by IT service line professionals. With hired experts, the IT manager of a service line bargains service-level agreements (SLAs) that detail their requirements and expectations for a project. Smaller IT departments that lack the necessary resources within their own organization can benefit from this structure.
Hybrid structure
Making external resources a part of an IT service line is the hybrid structure. To accomplish this, IT managers may employ independent contractors or subject-matter experts to carry out particular IT duties as a part of the service line. One contractor may be hired by a company to work across multiple service lines simultaneously, moving to each line as needed. Management in an IT department typically employs reputable subcontractors who are a part of their network.
Examples of IT organizational structures
Here are examples of IT organizational structures in the workplace:
Example one
IT specialists Joe and Priya work on a service line. Both technicians perform computer repairs, problem-solving, and software installation for their clients’ computer systems. Their IT manager, Michelle, supervises their work and makes sure they deliver high-quality technology repair services to office colleagues.
When a customer has a problem with her computer, she contacts Michelle to request IT support. Michelle sends Priya to troubleshoot issues and run diagnostic testing. Priya asks Joe for assistance when she can’t figure out the problem. Joe conducts more thorough testing and determines that an applications specialist is required to resolve the problem. To assist them, Michelle makes contact with an applications specialist who works as a freelancer within their network. After resolving the problem, the expert got in touch with Joe and Priya to explain what the underlying hardware problem was.
The independent service line structure and the hybrid structure are combined in this example to give teams access to specialized contractors to address complex problems.
Example 2
Nicholas is an IT manager who is in charge of a group of three IT professionals, including one applications specialist and two technicians. Each team member has a specific responsibility, with the application specialist focusing on software downloads onto recently installed hardware, the other technician performing hardware repairs, and one technician concentrating on hardware installation. Nicholas calls a contractor named Martha who specializes in hardware when a client has a hardware problem that none of the three specialists can fix.
Before starting the project, Martha and Nicholas draft an SLA that specifies that she can be paid once the hardware issue is resolved. Following completion of the SLA, Martha resolves the hardware issue and is paid in accordance with the terms of the SLA.
This is an illustration of a hybrid service line structure that encourages service lines and contractors to collaborate to forge a mutually beneficial agreement.
Tips for IT organizational structures
When using IT organizational structures within your department, keep the following in mind:
Assign specific functions
Assigning specific functions in service lines can increase project efficiency. Managers can assign technicians to work on various tasks when creating a service line, which can increase a team’s productivity. For instance, if three IT technicians are assigned to a service line, one of them may be in charge of all software installation inside their office building, another may be in charge of all service repairs for office staff, and the third may be in charge of all client and specialist communications for their team.
Create smaller teams
A manager can concentrate more on each team member by setting a manageable number of people on their team. Fewer members on each team enable IT managers to identify areas for improvement within their team and strengthen particular skills in accordance with an individual’s experience because organizational structures allow for skill development. For instance, if an IT specialist lacks experience in diagnostic testing, an IT manager might assign them a number of testing-related tasks to help them develop their abilities and gain experience.
Facilitate escalation procedures
Create escalation procedures in your organizational structures that decide which IT specialist handles issues based on their skill set and expertise. For instance, having a procedure in place that calls for a hardware specialist to repair it can help to solve the issue more quickly if an IT technician is unable to find a solution to a hardware issue. Problems can be resolved and the organizational structure’s effectiveness can be improved in this way.
FAQ
How do you structure an IT department?
A support/tech department, IT management (including a bimodal IT management model), enterprise architecture, IT maintenance, network/system administration, IT security, etc. should all be included in the ideal organizational structure of a company’s IT department.
What is are the functional structure of IT organization?
The way that work is distributed within an organization is determined by its organizational structure. It enables teams to collaborate on tasks within the confines of their respective responsibilities.
What are the 4 types of organizational structures?
A business structure known as a functional organizational structure classifies employees according to their specialties, skills, or related roles. It is built on levels of hierarchy that include various departments and are run by leaders who have been designated.
