How to reorganize your business
Probably each of us has asked the question of whether the business or the department led is working in accordance to performing business formats works or we just organized as it seemed correct at one point?!
Without a good structure a good business can perform and we can relax only if:
- The market is growing;
- The products or services are sold without great effort on our part;
- We have money to pay salaries, fees and taxes;
- Employees are pleased to receive their salaries;
- There are enough resources for investment and Owners are happy because they receive dividends and enjoy dream vacations.
Problems arise for a company when:
- Market declines and sales decrease;
- Competition starts acting erratically and becomes extremely aggressive;
- We do not have money to purchase raw materials, pay wages, pay fees and taxes;
- Creditors knock on the door;
- The employees are sitting on a “powder keg” and we can’t really sleep.
The question is what to do in case things go wrong?!
- We ask a consulting company to help us reorganize the business. Unfortunately it’s costly and might not give the expected short-term results. In this context there is a well-organized but bankrupt company;
- Choose courses that give us the whole methodology of business reorganization;
- We walk through the steps below.
To have a functional and organized business, the following steps are necessary:
1. The Owner or General Manager of the company has a clear vision about what he/she wants and what is the company aimed to reach (in this situation);
2. Have established new strategic and operational objectives (quantitative and qualitative) for each department or position, obtained through a process of “Business Forecasting”;
3. Establish a functional and adaptive organizational structure. This means to have established the following:
a. Hierarchical levels and clear decisions;
b. Competencies and limits of responsibility for each job function and individually;
c. Job Profile;
d. Job description;
e. Objectives allocation sheet;
f. Performance Indicators, etc.
4. Ensure that each department or function has established working mechanisms so that employees have both objective and clear actions for achieving what is hoped. This means that the sales department has mechanisms (action + results), instruments and clear deliverables (documentation + Forms + templates) for achieving sales, etc.
5. Each position is to take clear coordinated action to achieve the objectives (see MOA Methodology). What does this thing mean?! It means that each position has defined, in addition to quantitative and qualitative objectives, clear initiated actions in order to achieve objectives;
6. Establish coordination and supervision systems of employee activity. This means having the following:
a. Mechanisms for achieving the objectives for each department and position (actions initiated + expected results);
b. Performance Indicators adapted to activities and jobs;
c. Professional systems for performance assessment;
d. Payroll systems calibrated to the performance indicators and the evaluation system.
In short, is the minimum amount of actions to be initiated by each of us in order to have a business format that allows us control over employees actions and results, and last but not least, a structured company.
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I wish you success and best of luck!
PhD. Petre Nicolae