Organisational structure is not top of mind for most business owners. Small businesses do well with flat structures. The team deals directly with the owner. There’s a friendly, informal, ‘just get on with it’ feel. With growth, change may be needed.
Hierarchical structures can have negative connotations, suggesting unnecessary bureaucracy, oppressive to people who work in them, frustrating to customers. But the right structure can improve morale, productivity and overall business success. It can be a pragmatic solution when a business is growing and suddenly the team (and you) can’t keep everything in their heads any more. It’s possible to create structure, with individual roles and responsibilities, and still encourage employees to express ideas freely.
Aim for
A guideline for employees to understand where they fit and what needs to be achieved.
Good communication flow; knowing the right person in each section to connect with to solve problems.
Avoid
Environments where employees feel a lack of power or devalued.
Stifled creativity when those at the bottom of the pecking order lack confidence to come forward with new ideas and approaches.
What should you do?
Involve your team.
Let them know why you want to change the current structure.
Seek their views. What works? What doesn’t?
Whiteboard the major processes to identify bottlenecks and where the business would benefit from better systems e.g. a ticketing system for repairs and complaints.
Talk through options.
Hold regular meetings to support innovation and strengthen the company culture.
