Creating a company culture: Lessons form Consolid8

Consolid8 is an accounting firm that was originally built on the experience Managing Director Tanya Titman developed providing management accounting solutions. From that basis, Tanya realised there was a significant need for greater financial literacy among business owners, a focus she believes is a great differentiator for the business. There’s also been a focus on cloud accounting solutions, a fact that has seen the company recognised by Xero for its contribution to the industry.

However, Consolid8 hasn’t just made a name for itself in the way it serves its clients. The company is in the unique position of offering subsidised onsite childcare for its staff – a model that other businesses have expressed their desire to replicate. The childcare facility has provided challenges to the firm over the years, but it is well-established as a key part of Consolid8’s culture. The ongoing benefits it provides Tanya and her team have been well worth the effort.

The challenge: Balancing business ownership with a young family

In the last practice Tanya worked in before starting Consolid8, trying to look after two children (there are now four in her family) meant she experienced challenges often associated with being a working parent.

“[When] having a baby and running a business, you don’t get to take six months off or 12 months off and just enjoy motherhood. It’s like business, it never stops,” Tanya began. “I went through the challenges of trying to look after a baby while balancing that with work, and it was really, really hard.”

“At the end of it I thought ‘no woman should have to go through this’, so when I went out on my own from day one I set up the on-site childcare.”

Tanya approached the inclusion of the childcare facility with no real strategy, but a desire to make it happen so other women could avoid the stress of what she went through. This resolve was put to the test even before the facility’s doors opened. It was originally meant to be a joint venture, but the day the centre was to open was the day the GFC hit, so the other business pulled out.

The solution: Creating a family-friendly working environment

Tanya’s experience in an industry that wasn’t able to offer the flexibility working parents desired was a key catalyst for the on-site child care centre. Women across the accounting sector were being discouraged from coming back into the workforce after having children, leaving them to make the tough decision between their children and their career. At Consolid8, that’s not a choice they have to make.

“Amongst my peers and people I’ve gone through uni with, there’s some amazing talent and I’ve seen them rise really quickly through various firms and do amazing things and then they’ve had a child and it’s all come to a grinding halt because they weren’t offered any sort of flexibility,” Tanya explained.

“If I can present these amazing women with an opportunity to bring their kids to work or have their baby with them and be able to be breastfeeding and not have any of the barriers to being in the workforce… no one has to make the choice between work or family”.

Unfortunately, the process of setting up a child care centre wasn’t as simple as it sounds, especially as Tanya was essentially a pioneer for this model of creating an on-site variant. One of the core decisions concerned whether the centre could be government-funded without incurring significant amounts of red tape.

“If we were to become a fully licensed childcare facility, we could access government funding but to do that essentially we’re becoming a commercial childcare centre, and there’s a whole lot of regulation and a whole lot of requirements for that that made it cost-prohibitive,” Tanya says.

The results: An engaged workforce and a defining culture

The effects of the on-site child care centre have been wide-reaching, and influence more than just the working parents that bring their children into Consolid8 each day.

“A graduate can come on to our team and know they’ve got a lifelong career here if they want it, and they’ll never have to make that choice,” Tanya says. “I’ve had some of my male team members come on board and be able to bring their children to work so that their wives can go back to work.”

Most importantly, the centre is shaping Consolid8’s culture and changing the way staff engage with each other, while also attracting the next generation of employees.

“The parents that are on the team are very connected because their children are growing up together in child care.”

“The talent we get is incredible and we have a lineup of people wanting to come on board,” Tanya notes. “In an industry that is really quite competitive for great staff, it means that we have the edge over many of the larger firms because they can’t match what we can offer in terms of that work/life balance.”

Tanya’s desire to challenge herself while developing Consolid8 led her to TEC, where she finds she is able to be influenced by people from business outside the accounting industry. Importantly for Tanya, the group isn’t just there to congratulate her on what went well but rather exists to question and challenge her – and each other – for the purposes of improving the business and her role within it.

The guide to organisation structures (flat vs hierarchical)

Is it time to redesign your organisational structure? Though many companies can benefit from a restructuring, fewer than a quarter of organisational redesigns actually succeed. But it doesn’t have to be this way. Organisations can undergo successful restructuring as long as they understand the differences between organisational structures (flat, hierarchical, matrix etc)— namely, their benefits and their drawbacks.

Why structure?

An organisation’s structure forms the very basis of its operations. Not only does it inform employees regarding who they answer to, but it also identifies core decision makers and defines the company culture. Without structure – even a loose structure – there can be no decision-making and no accountability.

However, the type of structure is often up for debate. Most businesses either operate on a flat structure or a hierarchical structure, depending on their needs.

Flat organisational structures

Flat organisational structures forego the concept of middle management entirely. Instead, staff members exist directly under executives, often working in teams rather than independently. Flat organisational structures may still include ‘team leaders,’ but these leaders will generally shift on a per project basis. During times of business growth, these teams may change substantially.

Ideally, a flat organisational structure is designed to empower individual staff members. As they must take on a greater role within the business, they become personally motivated to succeed. Without middle managers, there also exists no additional layer between the executive level and the staff level – making it easier to communicate and adapt.

Valve Corporation, a leading video game developer and digital distribution system, is one of the best-known examples of a large organisation that operates on the flat hierarchical model. Rather than assigning permanent managerial staff, Valve rotates its leaders on a per-project, per-team basis. Rather than creating permanent departments, Valve allows its employees to choose the type of work that they want to do.

With approximately 250 employees and an estimated worth of $2 to $4 billion, Valve is considered one of the most successful companies within its industry. CEO Gabe Newell reports that the company is more profitable per employee than either Google or Apple. At the same time, its flat management hierarchy has been the target of intense and widely publicised criticism in the past. It is also possible its structure is so successful because the company is comparatively small.

Many of the criticisms levied upon Valve are the same criticisms levied against flat organisational structures in general. Failing the development of an official management structure, an unofficial management structure will often arise. Instead of being told who to report to, employees may begin looking towards arbitrarily selected authorities for their cues. These authority figures are often selected due to their seniority or connections within the company, and may not necessarily be those best suited to the role.

Hierarchical organisational structures

In a hierarchical structure, an organisation is comprised of multiple layers. Every employee within the organisation answers to someone, with the CEO generally being at the very top. At the very bottom, entry-level staff members may answer to multiple managers, supervisors, and executives.

Hierarchical structures have several advantages. In a hierarchical structure, employees know where to look for in terms of direction and they know whom they report to. Employees can focus on simpler tasks, rather than having to self-motivate and self-organise. Employees also have something to work towards, as they may be able to climb the hierarchy in time. This type of organisation is highly structured, so that business growth provides very limited disruption.

With over 1.5 million employees in the United States alone, Walmart has been able to leverage its hierarchical structure to create consistency and efficiency throughout thousands of branches. At the bottom of the hierarchy are cashiers, stockers, and sales associates. At a level above them are customer service supervisors and merchandise supervisors.

These supervisors fall under a management trainee, which in turn falls under the assistant manager, co-manager, and general manager. On a regional level there will be a market manager, operations manager, or state general manager. And all of this falls under the existing executive-level hierarchy for the corporation itself.

It’s understandable that this type of organisational structure could be seen as quite unwieldy, especially for smaller businesses. A hierarchical structure is often slower to react and adapt than a flat structure, and departments are often forced to operate independently. The increased administrative time may also lead to substantially higher overhead.

Other types of organisational structures

Though flat and hierarchical organisational structures are the most popular, there are other alternatives. One such model is the “holacracy” model, developed by HolacracyOne, LLC and famously adopted by Zappos. Holacracy operates through teams rather than a management hierarchy, putting an emphasis on self-management on an individual level.

This model is designed to empower employees to advance their own goals in the ways that they see fit. However, with this much emphasis on personal responsibility and motivation, holacracy is a structural model that depends highly on the individuals within it.

What’s your structure?

What type of organisational structure does your business use? Is it as effective as you hoped? Organisation restructuring is common as a business goes through periods of growth. Often, when inefficiencies begin to arise in the usual business process, it’s time to reconsider how business-as-usual is run.

It’s important to note, however, that there isn’t a ‘perfect’ structure to fit each company. It’s about understanding your business strategy, the direction and the overall vision of your business. The structure chosen needs to be a cultural fit, but also allows facilitates the growth trajectory desired by the business.

If you’d like to learn more about organisational structures, or want to share your thoughts on this topic, contact us here.

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