If you want to evaluate whether or not your business’s organisational design is as effective and efficient as it could be, there are 3 simple questions you should ask yourself.
The answers to these questions will inform you, if your organisational design is what it should be, if it would benefit from adjustment or if you need to pull it apart and start again. The questions are,
Question 1: To what extent is your organisational design driven by legacy culture and practices?
This question is designed to challenge the status quo thinking about your organisational design.
Are your people organised in a particular way because they’ve always been organised in that manner, regardless of changes to your processes, the market you operate in and/or competitive forces? Moreover, was it historically designed to accommodate (now redundant) processes, but hasn’t been updated due to a resistance to change from the people within
Having worked in the SME space for the past couple of decades, I have noticed a certain pattern that is not all that surprising. The more experience a person has in business, the better business loan they are likely to get.
In general, this is not because banks or lenders are more confident in their ability to succeed, but because experienced business owners know what to look for.
The simple reality is that, until you have run a business, you don’t really know what running a business takes. You underestimate expenses, overestimate profits, and rely on the wrong people to give you accurate information.
Many SMEs run by first-time business owners end up with expensive loans that don’t even cover everything they need. Often, they have listened to their banker without negotiating or even knowing the right questions to ask. I’ve been there before, and it is nothing to be