Establishing the right organizational structure will help you focus efforts in the right places and adapt to changes in the business environment. In addition, although we speak of structure, we have to keep in mind that the work is performed by, and relationships are developed with, people. If you forget the human part of your business, you aren’t going to find much support for it.
When you start out, it may just be you. As time grows, it might be just you and one other person:
As the company grows, you will run out of hours to get all the work done as well as doing the management tasks that are needed. Let’s say that you secure a big contract and need to hire eight people to do the work, including an accountant and someone to do the hiring and people management.
The new organization chart might look like this:
Again, as the organization grows, we tend to add layers of management and workers to meet the business’ needs. Some companies will try to stay flat in order to provide those workers with the authority they need to carry on the work. At other times, they look like large, layered pyramids, like the one below. As the organization grows, people at the front line get farther away from the decision maker at the top of the pyramid, and the decision maker also gets farther away from the customer or client.
It’s essential to make sure that you have the right people on board and that your business grows in the right way. In the next session, we’ll share some tips for building a great team.