How to Expand a Business & Organizational Structure
Completing a thorough self-assessment is necessary for for-profit businesses and non-profit operations to properly expand their business and organizational structures. Strategic decision-making includes knowing whether the current structure is meeting core values and generating a profit or delivering program goals. Expanding to reach new market opportunities or achieve grant-funded goals entails a change that is much different than building executive and board positions. Achieving growth through self-directed teams that identify mission-critical positions, or outsourcing tasks to experts, are other options that create buy-in throughout the corporation.
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Things You'll Need
- Mission statement
- Short-term and long-term goals
- Organizational chart
- Budget
- Profitability assessment
- Sales projections
- Program needs for non-profits
- Customer satisfaction reports
Instructions
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Expanding a For-Profit Structure
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Determine what positions, such as research, production or customer service, give the company the most competitive edge. Then evaluate how outside influences, including regulation, international trade and local business events, are providing opportunity or impeding progress.
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Advance people from within a company to expand a business. Richard Branson, founder of the Virgin companies, told attendees at the Perfect Pitch business conference on Oct. 26, 2009, that each Virgin company hires first from the inside. He said phone receptionists have later trained to run departments while new hires filled the vacated positions.
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Give teams the task of selecting how corporate expansion can take place through vendors, outside sales personnel or new internal employees. As advised in "Managing Teams" by Lawrence Holpp, Page 21, clearly state each team's responsibility and authority level.
Expanding a Non-Profit Structure
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Evaluate whether the program is delivered effectively. Honestly assess the internal environment. Mike Hoff with the Center for Nonprofit Management advises asking, "Are there enough controls in place to guide and monitor ongoing work? Are there too many controls that restrict people's ability to get work done?"
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Give volunteers ownership of program goals whenever possible. Listen to their feedback on expansion, equip them with the necessary tools to perform. Decide what they need, and use the data to assess where growth must occur in the organizational structure.
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Create strategic partnerships with like-minded but non-competing non-profits to share resources. A Boys and Girls Club could team up with a YMCA to hold a fund-raiser. One consultant could work on the project and serve the organizations simultaneously.
Expand through Outsourcing
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Give tasks that key executives handle to experts and specialists, including human resources functions. It might cost less to hand off employee- and health-related issues to a professional employee organization, or PEO.
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Compare rates for managed information-technology services that come with 24-hour response against the cost of maintaining a full in-house IT staff. Non-profit organizations might be able to pinpoint specific costs and have them covered through targeted fund-raising.
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Use a marketing consultant to handle important projects. Or outsource specific functions, such as online advertising, to companies with successful track records so you can remain focused on the company's core competencies.
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Tips & Warnings
Build for the long term.
Seek innovation.
Maintain open communication with all employees.
Don't create a culture of fear.
Don't give partial or misleading information to employees.
