As the business environment changes or if a Company grows, it is easy for the headcount to grow too large or the organisation structure to become "out of shape". From time to time, it is worth looking at an organisation from first principles, to ensure that it is constantly revised to ensure that it remains efficient.
There are four steps to take to maintain an organisation at its optimum efficiency:
- Calculate what staff are required in the "front-line" to deliver your service or produce your goods.
- Assess what administrative staff and other support staff you require to ensure that the "front-line" staff can work efficiently and without burdening them and the Company with unnecessary overheads.
- Determine the minimum management team you require to ensure that the front-line team and support team are managed efficiently.
- Create an organisation structure which has clear lines of responsibility and the shortest lines of communication.
In times of growth, this is an exercise which should be re-visited every year. A few days spent taking the temperature of the headcount and organisation structure can save a lot of wasted time, effort and money.