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Planning for Growth: Determining Organization Structure

Planning for Growth: Determining Organization Structure

When you first start out your business, you most likely had a small, core team that was highly invested in the success of your startup. You and maybe a partner or two.

There might have even been a time where you literally did everything yourself. From networking, to selling your product or service, to delivering what you promised. It was all you.

But now time has passed and the problem is you’ve grown so much that it just isn’t possible for you to be everything at all times to your company. You find yourself having to let go more and more of everyday duties to your employees.

And it isn’t easy.

You’ve carried the whole weight of your company on your shoulders for so long, it can be terrifying to be striped of that responsibility.

Now is the time to really flesh out your organizational structure, and prepare yourself to fulfill the jobs you actually want to do, not the one’s you have to do.

Getting Started

You’ve probably all heard the saying “if everybody is responsible, nobody is responsible”. That saying is the truth when it comes to your business. You must have clarity on who owns what aspects of the company, otherwise the ball will get dropped, and chaos and blame will ensue.

A best practice for dividing your organization, especially while it is still small, is to use these 3 categories: Sales/Marketing, Operations, and Finance.

Now obviously, these categories can be broken down even further, but while your company is still small and growing you don’t want to overcomplicate or break up roles that naturally go together.

Sales/Marketing

Under this umbrella falls the actual acts of selling and marketing. Setting goals and implementing a process to reach those goals are duties that would need to be overseen by the individual who owns this particular category.

Operations

This category covers customer service, as well as actually producing your product or service. This means managing the process that goes into this, and ensuring the company delivers.

Finance

Into this bucket falls just about everything else: budgeting, reporting, office management, human resources, administration, information technology, and anything else that needs to be done.

Top Level Management

Over these 3 categories, it is best to have someone to oversee that the work is actually being done. This individual should probably be a second in command, someone who is a great manager and knows how to get results and resolve issues.

This person should then report to the CEO. This allows only top level issues to ever be filtered upwards, allowing for the CEO’s focus to be on new ideas, high level problem solving, managing large relationships, and so on.

This type of organizational structure will give your company the ability to have clarity, and sustain growth. No matter how you determine the final people and corresponding responsibilities, having this structure will create a more productive company.

About the Author: Jeff Reinstein has been helping businesses grow as the CEO of Premier Business Centers since 2002. He has been a driving force in expanding the company from 9 locations to 70.

 

Posted: 5/20/2015 8:47:32 PM by | with 0 comments