Answer These Three Questions to Take Charge of Your Company’s Organizational Structure

Small businesses often get caught flat-footed coming out of the summer. Normally a time for long vacations (and daydreaming about those long vacations), summers are hardly ever peak times for most businesses. Instead of dwelling on external factors (your non-controllables), scaling companies would do well to reevaluate management and other organizational structures as the busy fall season approaches.

Managers of high-growth businesses too often implement a reactive management structure instead of anticipating future needs. Each business has unique needs and considerations related to its management structure. Essentially, though, your enterprise needs to answer three key questions: why, what, and who.

First Question: Why?

The benefits of having an effective organizational structure are too numerous to count. A company doesn’t thrive unless its employees are in the right positions. Having the right people in the right positions helps companies fulfill the promises they made to their customers. While each of your firm’s employees might be wearing several hats right now, implementing a clear organizational structure will help set up the business for future success. Getting used to your company’s organizational principles now means less time adjusting to it when the firm experiences exponential growth. 

Second Question: What? 

We know how busy growing businesses and their managers are, but it’s vital for entrepreneurs to make organizational structures a priority. Now that you’ve put aside some time to create your company’s structure, it’s time to address the what. Does the business need any new roles? Is every existing role suited for the firm’s long-term goals? Remembering that past success does not always portend future stability is important for managers and executives.

Third Question: Who?

Does your company have any superstars who need to shift roles? Will the business have to turn to outside hires in order to fill out the new organizational structure? The importance of having the right people in the right positions cannot be understated. It can be immensely difficult to objectively evaluate an employee’s performance after he or she has been at the company for a significant amount of time, but it’s too important to ignore. Ultimately, an employee is probably in the right position if he or she wants the role and has the competencies to properly execute it.

Turn to an Innovative and Holistic Business Law Firm

The most difficult part of implementing a new organizational structure for your business is making personnel changes. It’s tough to let people go, and hiring new employees is a long process. In every corner of the hiring and firing processes are legal vulnerabilities and considerations. Employers must stay in compliance with applicable state and federal laws—not to mention employment contracts.

Sage Business Counsel can be there for your business during these delicate, high-growth phases. Getting your business where you want it to go is our mission. Contact the team today for a strategy session.

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