It is like simple solutions. Our business plan has a value statement around understated yet elegant solutions for all our work. Over the years we’ve tried to use that theme for both my personal life and professional work. That same approach could be used for building your business structure. First, you need to be absolutely clear about what you are trying to do with your organization.
So far we’ve been laying the groundwork for you to construct an organization that best fits your needs. To do so requires a number of considerations. Perhaps the best way to build your structure is to use a fluid method of constructing the diagram instead of trying to make it fit into a preexisting format. It is critical that you ask specific questions during this step, including:
- What types of skills are required?
- What education levels are required?
- How much experience is necessary?
- How many people are needed?
- How do I group the people into effective work units?
- How will these work units be led and managed?
There are some things that should be centralized for the benefit of the structure as a whole. An example would be the vacation policy. There are other things that are best decentralized. An example is the local purchase of common supplies. No matter what structure, pyramid or flat, circular or horizontal, or relationship or approximate, there is still a need for discipline and order. Make sure your structure includes methods to protect authority, responsibility, and accountability.