Create a new organizational structure
- Draw three boxes for three primary functions: sales and marketing, operations, and finance.
A fundamental belief is that there are only three primary functions in any business: sales and marketing generate business, operations provide the service, or manufacture the product. At the same time, finance manages money inflow and outflow.
- Expand your primary functions if needed.
Having three to seven primary functions is a sweet spot. As you grow, you can expand each primary function into minor business functions.
- Draw another box that connects the primary functions. Define an integrator.
The integrator is the person who harmoniously integrates the primary functions of the business. That’s usually a CEO, president, or general manager, and this person has a unique ability to run the organization.
- Draw another box that is above an integrator box. Define a visionary.
The visionary is typically the owner, co-owner, or founder. In a partnership, one partner is visionary, and the other is the integrator.
- Write down roles for each function.
Have five bullet points, at most, for each function. For example, operations have the following roles: customer service, process management, making the product, provide the service.
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