Step 5 of Building a Better Business: Get your organisation structure right
Your ideal structure will allow your business to become more efficient and achieve economies of scale. This increases your bottom line returns at a greater rate than your revenue. Your organization structure should allow your revenue to increase without creating bottlenecks.
An organization structure should show all ten departments in your business, who is responsible for what, and how the hierarchy works.
Each department should have only one leader. The same person can lead more than one department, but two or more people can’t lead the same department.
Every organization has 10 departments:
- Shareholder.
- Director.
- Leadership.
- Product / Service Development.
- Operations.
- Marketing.
- Sales.
- Finance.
- HR.
- Admin / Technology.
If you’re the owner of the business and currently lead multiple departments, ask yourself how well you’re leading each department. It’s likely there are some you don’t enjoy as much as others and procrastinate doing the tasks within that role.
Consider outsourcing or training one of your team members to take over the leadership of those departments you’ve been neglecting. They’ll likely do a better job and you’ll free up some time! Remember, overloaded team members (you included) are more likely to make mistakes. Also, paving the way for your team to grow and develop improves loyalty and engagement.
It’s important that your Organisation Chart is a living and breathing document that your team understands and works in sync with. Check in regularly to ensure your team is aligned with the structure and the hierarchy is being respected. During performance reviews, discuss whether there have been any changes to each team member’s role and update the chart to reflect these.
We can help you create the best organisation structure for your business, along with job descriptions for each role. Get in touch!
“Mission defines strategy and strategy defines structure.” – Peter Drucker