How to develop an effective Organisational Structure

Posted on August 30, 2018

An organisational structure prevents your company from falling apart as it undergoes changes that are essential for growth. Organisational Structure establishes uniformity and improves the efficiency of your developing business processes. Research indicates that a formal organisational structure is key to a company that grows to 50 to a 100 people.

As a startup, establishing an organisational structure should be one of your top priorities, as developing an effective Organisational Structure is key as your company grows, as often the CEO, can no longer keep track of everything as efficiently as he/she used to.

Defining Roles via an Organisation Chart

Defining roles is one of the most important early decisions for a startup. The best way to accomplish this is to use an organisational chart to plan visually and represent your management structure. You can use some different shapes and visual elements to develop the organisation’s hierarchy. This includes arrows, people shapes, balloons, and lines.

Once you have your organisational structure chart, you now have the bare bones of a reliable company that's built to stand the test of time. The next step is to focus on themore technical details – starting with your business procedures.

A growing business must establish systematic processes to help enable employees to be more productive with their time management. Without this, it will be difficult to identify crucial tasks and monitor the completion of these crucial tasks, especially for a nascent/ growing company with short and long term growth objectives. Such process also helps establish a sense of uniformity and a standard for the quality of output.

Documenting Operating Procedures

A startup can manually develop the documentation themselves. Through procedure documentation, you can reduce the time it takes to train new employees significantly since the process is already well established, documented and refined.

Now that your organisational chart and systemised operating procedures are in place, it is time to establish the teams that are responsible for your company's essential business processes. 

Distribute work through Delegation

A startup often struggles when it comes to monitoring every single member, especially with growing teams. A well-documented procedure is meaningless if you cannot identify and establish the most qualified people to carry out tasks effectively. The main way to get off work struggles is to distribute work and delegate tasks more efficiently. Firstly you should establish a system for managing your teams, delegating individual tasks, and monitoring the progress of every member. However, it is not easy to always manage a team, especially if there are remote workers involved. This is now a widespread and common problem for most companies since outsourcing freelancers is slowly becoming the norm for digital startups. 

With these three main aspects checked off (organisational chart, documentation, and project/team management), your startup is off to an amazing start. Now, are you ready to embrace growth?

Embracing Growth

After finally gaining traction and seeing progress, the final challenge that startups must overcome is to keep up with the momentum and set bigger goals. As a business, you should embrace growth and never settle for anything less than the great success you originally envisioned when you founded your startup company. Hence you should make sure that you regularly review your company's performance to spot areas that need improvement or optimisation. 

Organisation structures are key to the success of your organisation.

After finally gaining traction and seeing progress, the final challenge that startups must overcome is to keep up with the momentum and set bigger goals. As a business, you should never settle for anything less than the great success you envisioned when you founded your startup.

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