Many entrepreneurs are beginning to get confused: “how many departments should i have?” “the sector is less efficient, more redundant”; and managers of mature businesses are puzzled by the fact that, as business expands, the old sector structure is becoming less and less dynamic。
In fact, the enterprise sector does not have a “standard answer”, with its core being to fit its size, industry attributes and stages of development — starting with a “simplified and efficient” enterprise, with mature enterprises focusing on a “professional division of labour”, with a different core focus in different industries. Today is a one-off story, which can be used directly, whether you are the white guy who just started a business or the manager who wants to optimize the structure。
I. Common equipment sectors (whether small or large, industry or not)
These sectors are the “building blocks” of an enterprise, with a clear division of functions (but with more than one job) even for the initial team of a few people, and without any of them, it is difficult for the enterprise to function properly。
Ministry of administration (business “housekeepers”, to ensure day-to-day operations)
Core functions: day-to-day maintenance of logistics to enable the team to operate safely. These include, inter alia, the procurement of office supplies, the organization of office space, the organization of missions/annual meetings, the administration of stamp contracts, the docking of external agencies, staff travel, meetings arrangements, etc. It appears to be frivolous, but it avoids the “logistics” of teams, such as without the department of administration, where staff may spend time buying office supplies, coordinating conference rooms and diverting effort。
Initial fit: can be performed by the founder or core staff; mature fit: a separate department of administration with a breakdown of the posts of administrative commissioner, logistics manager, etc., may even be integrated with the department of integrated management。
Finance department (business “money bag”, money and shelter)
Core functions: managing funds, accounting for gains and losses, compliance and the enterprise's “lifeline”. This includes, inter alia, recording each income expenditure, producing financial statements (to make you aware that businesses are making money), tax filing (to avoid being penalized for tax evasion and evasion), budget management (to control spending across sectors), and financial planning (to make idle funds more valuable)。
Initial fit: could be outsourced to finance firms, or hired part-time accounting, with a core of “counting + tax returns”; mature fit: a full finance department, broken down by cashiers, accountants, treasurers, tax commissioners, etc., could even be created to provide data support for decision-making。
Ministry of human resources (business “brainkeeper”, recruitment and retention)
Core functions: managing the “people” process, from recruitment, breeding and hiring to retention, to avoid enterprises falling into “brain drain”. These include screening curricula vitae, interviewing candidates, induction training for new staff, upgrading of skills of older staff, calculation of pay benefits, performance appraisals, as well as addressing staff conflicts and developing talent development plans。
Initial fit: could be administratively managed, with a focus on “recruitment + basic attendance”; mature fit: a separate department of human resources with a breakdown of hiring commissioners, training commissioners, performance managers, etc., and even a system of equity incentives to retain core talent。
Core business sectors (business “profit engine”, survival decision)
In any industry, there is a core business unit responsible for direct revenue generation, which is the “lifeline” of the enterprise. The names of the core business sectors vary from industry to industry, but the functions are consistent - focus on making money:
• trade/retail sector: sales department (development of customers, contract negotiation, performance)
• internet industry: ministry of products + ministry of technology (development of products, optimization of functions, laying the foundation for subsequent realization)
• manufacturing: ministry of production (production, control of capacity)
• services industry: department of services/department of operations (interception of customers, provision of services, guaranteed repurchase)。
Adjustment to enterprise size: initial “simplified”, mature “detailed”
The structure of the enterprise sector is not static, but it is important to adapt to the dynamic stage of development — start-ups are like “hunting teams”, flexible and efficient; mature enterprises are like “farming tribes”, with a stable division of labour。
1. Start-up enterprises (10-50 people, flat structure)
Core principles: one person is multiple, streamlined and efficient, does not pursue full-fledged, focuses on “core business” and avoids internal consumption。
Recommended departmental settings (3-5 sufficient):
• core operations department (sale/product/production, by industry)
• integrated management department (administration + manpower + logistics, with one person on multiple duty)
• department of finance (outsourcing/part-time work, preparation of basic records for tax reporting)
• optional: technical support posts (with a core staff member if products/services need to be maintained)。
Pipe avoidance alerts: the ministry of justice's “branding department” was set up blindly at the beginning, and these functions could be outsourced, giving priority to “making money” operations。
2. A mature enterprise (more than 50 persons, functional structure)
Core principles: professional division of labour, clear lines of authority and responsibility, delineating sectors, breaking down the “one-man-man” disorder, improving efficiency and reducing risk while supporting business expansion。
On the basis of the generic essentials, new/substantiated sectors are as follows:
• ministry of markets: independent of the department of marketing, responsible for brand promotion, online orientation (e. G. Short video advertising, operating from the media), research user preferences, analysis of competitors, paving the way for the department to make your products known and available to a wider audience。
• ministry of research and development/ministry of technology: stand-alone products, technology upgrading needs, such as internet company code development, manufacturing process improvement, new pharmaceutical research and development。
• ministry of justice: as a result of the growth of business development, contracts have increased and compliance risks have increased, requiring the establishment of a ministry of justice responsible for examining contracts, handling legal disputes, applying for intellectual property rights and helping enterprises to “shelter”。
• department of operations: based on industry supplements, such as user operations (renewal, promotion) of internet companies, shop operations (uploading, promotion) of electric companies, customer operations (maintenance of older customers, promotion of repurchases) of service industries。
• senior management, such as the ceo office, board of directors, responsible for strategic planning, major decision-making, executive appointments and dismissals, and integrated corporate development。
If you have any ideas or questions, you're welcome to leave a message or private consultation
