Org and Position Management
Legal entities, business units, cost centres, positions and the reporting lines that hang off them.
Workflow
- 01Org Design
- 02Position Creation
- 03Funding and Grade
- 04Reporting Line
- 05Vacancy Release
If you change this
It implies 10 topics across 2 modules, including Security & Identity which you might not expect.
See the path ahead →Why it matters
A position carries the cost centre, the grade, the reporting line and the budget. When people are modelled without positions, all of that attaches to individuals — and moving a person becomes an exercise in moving the structure with them.
- It is the cost structure: Labour budget is held against positions, which is what makes vacancy visible.
- It is the approval hierarchy: Delegation usually follows the position, not the person.
- It survives people: A vacancy is a position with nobody in it, which is a meaningful concept only if positions exist.
The workflow
- 01
Position creation
A role is defined with grade, cost centre, reporting line and budget.
- 02
Approval
The position is approved against establishment and budget before it is filled.
- 03
Fill
An employee is assigned to the position, with an effective date.
- 04
Change
Reporting line, grade or cost centre changes are made to the position, with effect from a date.
- 05
Vacancy
The occupant leaves; the position persists and its budget remains visible.
- 06
Abolition
The position is closed deliberately, not left dormant.
Dormant positions are how establishment control quietly fails. A position nobody abolished is budget nobody released.
What you need in place
- Establishment control: An approved count of positions, and a process to change it.
- Effective dating: On every structural change, so history holds.
- Reporting line integrity: No orphans, no cycles, one manager per position unless matrix is modelled deliberately.
- Cost centre alignment: Positions map to the finance structure, or labour cost reporting will not reconcile.
- Vacancy visibility: Reported as a number people act on.
Questions to ask
01Establishment
Do we control the number of positions, or only the number of people?
Without establishment control, vacancy and budget drift apart.
02History
Can we produce the structure as at a past date?
Restructure analysis and audit both need it.
03Matrix
Do we have dual reporting, and is it modelled or worked around?
Worked around means it lives in a spreadsheet.
04Cost centres
Do position cost centres match finance's structure exactly?
Any divergence shows up as unexplained labour cost variance.
05Abolition
Who closes a position, and when?
Usually nobody, which is the problem.
Metrics and KPIs to track
Vacancy rate
Approved positions unfilled, by area.
Establishment variance
Positions against approved establishment.
Structural changes per period
Reporting line and grade changes, a measure of churn.
Orphaned positions
Positions with no valid manager or cost centre.
Alongside this