Step 5 of Building a Better Business – Establish a robust organisational structure

Once you have a clear Business Plan, the next step is to get your business structure right.

Your ideal structure will allow your business to become more efficient and achieve economies of scale. This will mean that your bottom line returns will increase at a greater rate than your revenue. Your organisation structure should allow your revenue to increase without creating bottlenecks.

An organisation structure should show all of the departments in your business, who is responsible for what, and how the hierarchy works.

Each of these departments 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 organisation has 10 departments:

  1. Shareholder.
  2. Director.
  3. Leadership.
  4. Product / Service Development.
  5. Operations.
  6. Marketing.
  7. Sales.
  8. Finance.
  9. HR.
  10. Admin / HR.

If you’re the owner of the business and currently leading multiple departments, ask yourself how well you’re leading each department.

Do you struggle with HR? Maybe you don’t love leading the Finance department and therefore you procrastinate doing important Finance tasks?

Consider outsourcing or training one of your team members to take over the leadership of one or more departments. 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 with your team regularly to ensure they’re aligned with the structure and respecting the hierarchy. 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

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