What is more important for successful business? Good resources, big premises, cafeteria, assembly areas :). Yes, these all are necessary but one thing which makes the difference is the hierarchical organization structure.
In CRM we have provision to create users and specify the profiles for them. Along with this we also have field named Forecasting – Reports to on the User Details section to set the user to whom the current user reports. Value in this field can be utilized for many purposes.
Let’s take an example of Sales department of any Company which has hierarchy as given below.

1. Sales Head
2. Sales Manager
3. Team Leader
4. Sales Executive

As per the hierarchy, we can create the users in the system and set the profiles. In above configuration Forecasting Reports to field for Sales executives will be set to Team Leaders and so on. Now how does this help?
1) We can maintain Bottom to Top level department hierarchy.
2) E- Mail notification to Reports to Users through workflow rules can be forwarded. Suppose user updates the forecast which is just an overestimate and manager needs to know it, an email will be sent to his reports to user.
3) Reassignment email notifications can be sent to reports to user. This is helpful when the tasks float between the users in the team.
4) Escalation Emails can be sent to Reporting user if configured. Suppose the opportunity is registered but not closed within close by date, a simple email notification can be sent to reports to user to inform him regarding the same.
5) Automatic task update reminders can be sent to reports to users to keep better track of the tasks.
6) The most important is when we have this structure defined we can use the Sales Forecasting module of CRM. We can define the sales quota figures at each level and track the target vs actual parameters for the betterment of sales.