An important part of business management is working out how to manage growth. From unexpected rapid increases, to trying to find good labor, to keeping people in their jobs, this is a real situation. Increased production requires expansion, which increases the bottom line, requiring even more production. It’s a good problem to have, to be sure, but it can really raise the blood pressure!
There is an organizational operations structure – an actual, physically posted chart – that will allow a business to expand with more elasticity. It has seven divisions on it, and is built around the flow of work and key functions that must be performed in any business.
Once it is complete, you see the choke points and bottlenecks, letting you hire with 100% confidence that you’ll be able to cover the increase in expenses.
We usually implement this along with a statistical management system that shows you whether your increased work load is temporary or permanent (among other things).
The above is key: if you have a known temporary rush, you handle it differently than a permanent new level of operation. Seasonal or one-time big orders can be addressed with temporary help or short-term shifts of employees from one area to another. A permanent new level of operation requires hiring permanent employees.
Entering additional organization into your business not only helps in business management, it increases employee morale. Many employees surveyed have said that their basic complaint in any organization is that it isn’t running in a way they would expect. This comes down to lack of organization. So, the chart can handle that complaint effectively.
When your business is growing well, you will often have to hire new employees. This can be a struggle. Many business executives have a difficult time finding good workers. We have written three blog posts on this subject, here, here, and here. We also often do webinars on this topic, so if you’d like to hear more on this subject or need a deeper understanding up managing business growth, go ahead and let me know.
