Corporate Structure: How to Build your Management Structure

How to Build Your Management Structure

When setting up your corporate structure, you need to decide what type of legal entity is best for your business. Then, you need to pay attention to how you are going to manage your business and the best way to build your management structure.

Bottom-Up is Best

Bottom-up means your management structure should flow up from the needs of your customers not down from the top people in your company. Your strategy with respect to best serving your customers should determine the structure of your management team, not the other way around.

Too Many Cooks Are Not Good

Don’t overload your business with too many managers and make it top heavy with too many managerial levels. The longer the communication chain between you and your workers, the more likely it is that your message will get muddied. Click here to see a chart of a simple managerial structure consisting of the CEO and just five managers.

Your Management Structure Should be Adaptable

Your business should have clearly defined goals, and your management structure needs to be set up to achieve these goals. However, your goals can be subject to both external and internal changes and your managers need to be flexible enough to make the necessary adaptations.

Small Groups Work Best

Successful businesses are those with some overlap between management and workers. People work best when they are members of small teams working on specific problems and projects. Also, don’t waste valuable managerial resources by having more than one department working on the same thing. Employees with similar functions should have only one manager.

Your Business Should Run Smoothly

With the right corporate structure and management structure in place, the interests and needs of your customers will always prevail. However, even with the best management, at some point your business will most likely find itself short of funds and unable to grow. Desert Star Commercial Consulting will help you manage your success by providing you with financing when you need it. So, set up a consultation with us today.

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