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How To Properly Organize Your Small Business
An alternative description of a company is an organization, but experience shows that very few small businesses are properly organized.
By: Michael Davel Anderson
An alternative description of a company is an organization, but experience shows that very few small businesses are properly organized.
By: Michael Davel Anderson
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Sure everyone has a title, many of which they chose themselves, but what that title means, and what authority it conveys or responsibility it carries is not enunciated.
So why is enunciation important? If you have followed my articles in the past you will remember that I set out four simple rules or processes for successful management. They are:
1. Tell your people what you expect them to do;
2. Measure their performance;
3. Provide them with feedback, and listen when they want to give feedback to you;
4. Reward them for quality performance and discipline them when performance falls below par.
Each of the above rules is equally important but if you really think about it, doing the last three without having properly done the first is impossible. You cannot measure something you have not described, you cannot tell your people if they are doing well if you have no benchmark, and you cannot reward them for good performance when "good" performance is undefined.
So this is where organization structure comes in and it comes in two parts. The first part is analyzing and defining the tasks required to be done and collecting them into clearly designated functions. This is done without reference to people or who is doing what now. Each function then is defined with allocated authority, responsibility and benchmark performance.
The second part is the easy part - allocating the functions to existing, new or reoriented personnel. Personnel are selected to fill positions solely upon their ability to perform the duties, to assume the responsibilities, and to be accountable for those functions.
Well defined organizational structure is the framework upon which a business depends for its form and efficiency. Without structuring the organization, optimal efficiency and a high quality of work life is not possible.
With 45 years of experience in leading positions in business across North America and internationally, Mike Anderson knows the business of business. More important, he has learned how to teach it. He is now consulting to small and medium sized companies, specializing in CEO and senior management training. Please Visit www.trainmetobeaceo.blogspot.com
So why is enunciation important? If you have followed my articles in the past you will remember that I set out four simple rules or processes for successful management. They are:
1. Tell your people what you expect them to do;
2. Measure their performance;
3. Provide them with feedback, and listen when they want to give feedback to you;
4. Reward them for quality performance and discipline them when performance falls below par.
Each of the above rules is equally important but if you really think about it, doing the last three without having properly done the first is impossible. You cannot measure something you have not described, you cannot tell your people if they are doing well if you have no benchmark, and you cannot reward them for good performance when "good" performance is undefined.
So this is where organization structure comes in and it comes in two parts. The first part is analyzing and defining the tasks required to be done and collecting them into clearly designated functions. This is done without reference to people or who is doing what now. Each function then is defined with allocated authority, responsibility and benchmark performance.
The second part is the easy part - allocating the functions to existing, new or reoriented personnel. Personnel are selected to fill positions solely upon their ability to perform the duties, to assume the responsibilities, and to be accountable for those functions.
Well defined organizational structure is the framework upon which a business depends for its form and efficiency. Without structuring the organization, optimal efficiency and a high quality of work life is not possible.
With 45 years of experience in leading positions in business across North America and internationally, Mike Anderson knows the business of business. More important, he has learned how to teach it. He is now consulting to small and medium sized companies, specializing in CEO and senior management training. Please Visit www.trainmetobeaceo.blogspot.com
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4 Customer-Centric Culture Building Blocks
Eight Considerations For Three Types Of Teams
Improve Communication At Work And Handle Difficult Conversations
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