Viraj Patil

Why is Organisational Structure Important for High Performance?

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When you start a business there are enough and more chores and operations to be managed and handled and initially, it seems easy to manage all of them by yourself. 

Also managing costs is also a big reason why a lot of start-ups and small businesses choose to not invest in building processes and doing it all in-house. All you need is a process improvement consultant which helps in increasing your business performance.

You may think your business is too small or too new. It might also feel too early to set up formal systems and processes, but providing a structure to your business from the outset will make you more effective and help your business grow. 

Using the systems and processes is the best way for small businesses to become more efficient and to be able to do more with fewer resources.

Entrepreneurs usually wear multiple hats and it’s not uncommon that in small businesses there are more roles to fill than there is the workforce. Everyone fills up for multiple roles since it’s quite possible you haven’t even hired people into specific roles yet. 

But that doesn’t mean you can’t define the roles needed to run the business and use the current workforce to fill in those roles. The organization structure doesn’t need to be concrete but there needs to be a framework put together to help you visualize where you are going and help the business get there faster.

How to Get Started?

The first and most important thing to do is to create a functional organizational chart that maps out the roles and responsibilities required for your business to run optimally and smoothly.

This structure will help you fill in the positions as you grow and will keep a track of what’s pending. Map down all the departments and functions needed in the organization and write a description of the functions of each.

Organizational structure provides clarity and will help you enhance the operating performance of your business. All businesses, large or small, benefit from leverage strategies.

After dividing the tasks and responsibilities, add Key Performance Indicators (KPI’s) that capture the results on which the employees will be measured to ensure accountability. The areas you measure should relate directly

to the core activities of your business, depending on your specific business type, operations, and industry. For example – unit sales, customer service, the time required to complete tasks or customer referrals.

Overall, Build structure into your business today. It’s the path of charting your own future success.

Connect with us if you need professional help in designing the structure and process for your business at any stage. Our team of experts would be happy to help.

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