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Re-Organizational Chart
Written by: Gary SilvermanArticle Overview: Most small businesses start with a good idea, an individual with a skill set who turns the idea into a revenue producing business, some investors or personal savings, and patience and perseverance. The founding father or mother wore many hats at the beginning and over time handed these hats to individuals who were hired to help as the business grew. Sometimes growth came so quickly that there was a rush to judgement as to how many and who to hire as well as their areas of responsibility. This was a good problem to have because sales were increasing and the dream of growth was coming true.
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Re-Organizational Chart
As the business matured you fine tuned your staff, departments, and areas of responsibility. Now you are faced with the bi-product of growth - people. Today’s business climate requires you to rethink what you’ve got. I suggest you take out a fresh legal pad and go back to square one. On the first page write down everyone’s name, title, and EVERYTHING they are responsible for and I stress EVERYTHING they do. Next put their 2008 and projected 2009 earnings. Add up the pay and circle it in red. Next page. (We’ll assume for the time being that your company is made up of people other than family members.) Use this clean sheet of paper to restructure your organization in an effort to increase productivity, eliminate redundancies, cut costs and possibly cut personnel. What better time to perform this exercise than at the beginning of a new year. You don’t necessarily have to cut personnel but if you improve the efficiency of your processes you will increase employee satisfaction. In Management 101 we learned to draw an organizational chart giving you a visual of whether you have a line or staff organization. What does yours look like. Do you have staff members reporting to more than one individual? Fix that. Does everyone report to one person, or worse yet, YOU? Fix that. That has to change or it will effect your productivity. Does everyone have a clearly defined role? How focused are they? By analyzing your structure you will begin to clearly see what needs to be improved. Take out another clean sheet of paper. Write down all of the jobs and tasks that need to be performed. Group similar jobs and tasks, give the job a title, and an assign an individual best suited to perform it well. It may be more feasible to replace a high paying position with a less expensive administrative position. At the end of this exercise you will reach three distinct conclusions:
Current structure, people, and job responsibilities remain the same.
Subtle changes and tweaks that will lead to some savings and greater productivity.
Wholesale changes will be necessary including major personnel, areas of responsibility, and structural changes which will lead to greater efficiencies.
Do not be afraid of change.
Liberate your Time by Developing your Company Organization Chart
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Article Tags: administrative position, better time, business climate, conclusions, earnings, efficiency, employee satisfaction, exercise, family members, job, jobs, legal pad, new year, organizational chart, productivity, staff departments, staff members, staff organization, subtle changes, tweaks
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