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How to properly organize your small business

An alternative description of a company is an organization, but experience shows that very few small businesses are properly organized. Well defined organizational structure is the framework upon which a business depends for its form and efficiency.  

 

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How to properly organize your small business


An alternative description of a company is an organization, but experience shows that very few small businesses are properly organized. Sure everyone has a title many of which they chose themselves, but what that title means, and what authority it conveys or responsibility it carries is not enunciated.

So why is enunciation important? If you have followed my articles in the past you will remember that I set out four simple rules or processes for successful management. They are:
i    Tell your people what you expect them to do;
ii   Measure their performance;
iii  Provide them with feedback, and listen when they want to give feedback to you;
iv   Reward them for quality performance and discipline them when performance falls below par.

Each of the above rules is equally important but if you really think about it, doing the last three without having properly done the first is impossible. You cannot measure something you have not described, so you cannot tell your people if they are doing well if you have no benchmark, and you cannot reward them for good performance when “good” performance is undefined.

So this is where organization structure comes in and it comes in two parts. The first part is analyzing and defining the tasks required to be done and collecting them into clearly designated functions. This is done without reference to people or who is doing what now. Each function then is defined with allocated authority, responsibility and benchmark performance.
 
The second part is the easy part - allocating the functions to existing, new or reoriented personnel. Personnel are selected to fill positions solely upon their ability to perform the duties, to assume the responsibilities, and to be accountable for those functions. 

Well defined organizational structure is the framework upon which a business depends for its form and efficiency.  Without structuring the organization, optimal efficiency and a high quality of work life is not possible.

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The Author After 25 years consulting to small and medium sized companies, Mike Anderson, principal of Train Me To Be a CEO realized that the most important part of his work was training the CEO, and the reason he was such a good consultant was that he did that very well.

Trained as an engineer, he became a CEO of a midsize corporation at the age of 35. After a spell at Harvard Business School he entered the world of consulting.

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2. Regional seminars. Restricted to 8-10 people, an intensive 2 day training. (most economical). Click here for upcoming seminar schedule.

3. Ongoing mentorship. Begins with a minimum two day one on one, but continues with monthly or quarterly follow up sessions. (Smart and probably Best!) .

 

References

A New England Contractor

"Mike Anderson has been working diligently with the upper management team at (our firm). Mike is extremely knowledgeable and has an exceptional way of dealing with many different personalities. He has worked very closely with the Sales Team to impress upon them the importance of using a consistent method of estimating. He was instrumental in restructuring our accounting procedures."

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