Learn about Building your best middle management staff Part I

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Building your best middle management staff

Effective middle management is the link between your visionary plan and your executive decisions. As your business is growing, you will be distancing from the day to day work and will need to have some lower managers to see for the realization of your vision and day to day activity of your business.

The money to make it happened

When a growing business it is expected to have some crisis on the managing level.

A startup is small and has only a few persons working. Most will be co-owners, dreamer that can work almost around the clock and be there for any problems. Once the business is growing into production or sales, it will need manpower for this levels, and the owners will have to use their traits as leaders and managers on top of the lower staff. A visionary and dreamer may have problems to do the low managing, so they will start hiring some new employees for this middle-level job. Greiner’s growth model, for instance, describes how companies experience different growing stages, marked by regular crises demanding higher organizational concepts. Read more Larry Greiner Growth Model in the Organization Life and a Case Study

When a business is doing good and start growing it is likely that it will encounter the lake of source and funding or miss some skilled workforce or its existing management structure being overwhelmed by the new volume of responsibilities and work to do in short time or above their capacity.

When a small business grows to a medium size operation, it creates a different situation. The new size will need a change from a small intimate team to medium size with a management team that requires the founders to delegate to the next management level and leaves the daily work in favor of the higher level of managing like future products and a higher level of finance managing.

Investors that take have a part in a startup can plan for a new managing team when the business starts growing in sales and need a different style of managing.

New boss time

It is common that the leader with the vision of a new technology or new service will have not too much skill or not much of being fond of HR. Being the boss of your small organization can be your comfort zone but not investors plan for you, If you do not grow too you will find it very soon after success is established you can expect to find a new executive above you.

From a small company to managing a big enterprise Part 1/2

From a small company to managing a big enterprise Part 2/2

If you are the investor or the visionary inventor and what to grow with your business, you must understand the organizational development both academically and practically.

Growing pains

At the start-up stage or just as a small business that starts growing and it’s managers realize that they are unable to keep under control its day to day activities, it’s the right moment for a new manager and specific responsibility

and reporting scale being established. The organization starts to be organized, and an Organization Chart needs to be filled by the new incoming managers.

The twitting boss

The CEO of a fast-growing organization will need to unitize the operation into departments with a manager on top of each unit, production, markets or any segment according to the type of business the company is doing. All these middle managers will report to the CEO. By keeping the units apart, you can give them some independence at the same time that you can control and coordinate them all.

When an organization is ready to consider implementing more formal structures for middle management posts is hard to gauge. In 2002, Campbell – along with his colleague Michael Goold – developed nine organizational tests to guide the choice around the design of any structure. These include ‘strategy’ tests – identifying where the business wants to focus and where people will need to be devoted to those activities – as well as an ‘accountability’ test, where the ultimate aim is to get two functions to work effectively together.

Leadership; Can people learn it or it is an innate trait

A CEO that has two departments under his control, like one sale and the second production, being reported directly by the two he will have this kind of situations. The sales head will say that there were not the right products and the production head will claim that the sale did not sell enough. The solution will be to add a management post on top of the two to keep them aligned with producing what sales needs and selling what production had made. One more place to put another managing post and gain more control is the HR with recruits and accounting with payroll and pay stubs that will need to be under one head that coordinate their activities.

Creating new businesses with completely new product needs a lot of faith in the product and some good amount of money for the startup phase.  The technical traits are more important at the first stage, the product will need a lot of work before it is good enough for the market. At the time that the product is finished and launched to the market, the focus will move to the finance for funding the production line and marketing will start taking more important part as it will have to push sales. Parallel to this important changes will come the time to adapt the managing team to the new situation.

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