Building Organizational Structure

It is organizational structure and business culture that allows your business to achieve its ultimate growth potential. Yet it seems to be the last element of the business model that small business owners want to address.

This is particularly so where the business has grown from a small operation into a larger one. Giving up control of your business to others, even if it is just a small part of the business, feels like you are giving up one of your babies. It is incredibly hard to do. Yet just like parenting, you know it is an important step if the business (or your child) is ever going to reach its potential.

Looking back you believed running a business with small staff numbers was hard as you worked long hours and had to continually make decisions on the run. However, you now realize that life gets even harder as you are forced to rely on other people to make decisions and run the various departments within the growing business.

Organisational structure is about formalizing roles and responsibilities for the various teams working in your business in a way that has them working toward the long term vision you have set. It is about delegating decision making powers away from the ownership group and leveraging the abilities of the team to manage a business that has outgrown the control limits of one or two individuals.

Developing the right culture within the business is vital to building a customer focused team that looks for innovative ways to improve the business in line with the overall vision. Culture is about “How we do things here”. Its sets the moral compass for all workers to understand what is right and wrong, and it harnesses group power to covertly bring non performers back into line.

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