Tips for Building Your Management Structure
When beginning a new business venture, you first choose a corporate structure (corporation, LLC, partnership, etc.). Then, you must structure your management team. How you do this can mean the difference between success and mediocrity, or even failure. Your management workflow must begin from the bottom up, starting with the needs of your customers or clients. Here are some more tips for putting an efficient management structure in place.
Limit the Number of Managers
The longer the management chain of command, the more likely it is that your message will be diluted or modified by the time it gets down to your nonmanagement employees. The following is an ideal management structure consisting of only three hierarchical levels.
• Production and Services report to Operations.
• Accounting reports to Finance.
• Operations and Finance report to the CEO.
Keep Your Organization Structure Simple
There should be clear separation of duties. A manager responsible for one department should not interfere with the operation of another, and responsibilities of different departments should not contradict each other. However, regular management meetings should allow your managers to cross-pollinate ideas across departments. A subordinate should not have to answer to more than one manager. Research shows that people are happiest and more productive when working in small groups, so don’t place too many employees under one manager.
Your Management Structure Should be Adaptable
Your managers must understand the primary objectives of your business and work towards achieving them. The interests of your company should always prevail over the interests of any one individual manager. However, your company goals can be influenced by external changes in the business environment, and your managers must be able to adapt to them.
What to do When you Need Funds
Even with the optimum management structure in place and working well, you will probably find that you need funding in order to reach your corporate goals. Vankeith Commercial Capital is a specialist in helping small to medium-sized businesses achieve their objectives. Book a consultation with us to see how we can help you grow your company.