Companies today suffer from a lack of effective communication. They’re like cars without fuel, they don’t move forward. Imagine you owned a car that pumped gasoline into the tires or the trunk instead of where it needs to go. Unfortunately, many companies have the same problem as your imaginary car.

Information is to companies what fuel is to cars, it’s what makes them move. Information needs to be fed into the right departments or areas in order for decisions to be made. If the right people aren’t aware of what’s going on inside and outside of the company then fully informed decisions won’t be made. Problems can’t be addressed unless they’re made known, and some departments can’t do their jobs unless they’re aware of what’s happening in another department.

Telling every department and individual to share information with others is too vague, so it’s important to implement structural groundwork to establish clear channels of communication. There are several effective structures to choose from that will facilitate the flow of information from one department or individual to another.

The functional structure is the most common one. The way it works is that each department head reports directly to the CEO. Imagine the visual of a pyramid or family tree and you’ll get the picture of how this structure works. It’s the most effective way to keep the CEO aware of problems and developments in the company.

Because this structure puts such an emphasis on communication with the CEO department-to-department communication isn’t addressed as much. The CEO may choose to update the company as a whole on how each department is doing and any problems they’re facing in order to account for the lack of horizontal communication.

Not every company can use this structure but finding one that fits your company is important. Make sure your communication lines are open and that your employees are informed in order to make sound decisions.