Organizational Design and why it is important to have a plan Oct. - - PowerPoint PPT Presentation

Organizational Design and why it is important to have a plan

• Oct. 20, 2014

Bob Alsip President SoftAdvantage Inc.

 Business development roles  Industrial, medical, environmental, software,

consumer market segments

 Corporate and small business  Experience in organizational development,

strategic planning and training

Why plan your organization?

“Good fortune is what happens when

• pportunity meets with planning,”

Thomas Alva Edison

Why plan your organization?

 Planning doesn’t guarantee success - it reduces

the risk of missteps or even failure

 Planning can identify when and from whom will

you need help in growing the business

 Planning will help you establish appropriate

compensation structure for individuals

 Comprehensive plan is required to secure

financing

 Planning helps you establish a market position

faster (before competition)

Positioning

 You don’t need to be the first to have an idea

• r be the best offering

 You need to be the first in establishing a

presence in the minds of your target audience with a ‘good’ offering such that

• thers will be compared with you.

 Particularly important if you don’t have a

‘sustainable advantage’ and are relying on marketing to establish differentiation

Visioning Exercise

“Planning is bringing the future into the present so we can do something about it now” Alan Lakein

Visioning Exercise

 Plan for success  Decide where you want the business to be in

the future – say 2-3 years

 Describe your company in present tense  Decide how you got there – people/funding  Barriers are seen from a different perspective  Establish a ‘creative tension’ between current

reality and your vision

Example

DUBGEAR Oct 31, 2017

 My annual sales are $??



DUBSTEIN??



DUBSLING??



DUBPHONES?? (future)

 Major customers are??unit sales??  GM is ??  EBITDA is??  Product is supplied by??  Funding is provided by??  Ownership is??  Company culture is??  I have a 9 staff  Etc.

Visioning Exercise

 Description: Our current organizational structure is

focused heavily on sales and marketing given that we

• utsource all of our manufacturing to China. This is

aligned with our objective to grow the business and brand awareness while reducing overhead costs. The board includes one retail industry expert and foreign manufacture expert. In addition, the board also includes a seasoned core of business, legal and finance veterans that will provide the necessary governance, financial acumen and strategic guidance to DUBGEAR’s senior management team. …………………………………

DUBGEAR Organization Oct 31, 2017

TBD Board of Directors Jansen White President & CEO TBD Director, Marketing TBD Marketing Agency TBD Director, Sales TBD Retail Sales TBD Promotional Sales TBD Controller/CFO TBD Accountant TBD Director, Product Sourcing TBD Product Design TBD Administration

What are the considerations when designing your organization

 Skill sets required at each stage of

development

 Roles, responsibilities and reporting structure  Sources of funding  Sources of resources  Compensation structures

Roles and Responsibilities

Business Element Importance I Desire D Ability A Responsibilty Financing/investor relations 10 8 8 Reserved Marketing 10 10 8 Reserved Sales 8 10 10 Shared with staff Design 10 10 7 Reserved Production 8 8 4 Delegate/closely monitor Purchasing 6 5 5 Delegate/manage Accounting 5 6 6 Delegate Website 8 7 5 Coordinate external resource Social media 6 8 5 Delegate Distribution 9 8 8 Reserved

Why the need to understand roles and responsibilities in your plan?

 To avoid bringing in and even providing equity to

people who cannot grow with the company

 To fund HR at the various milestones  To determine what unique strengths are

required (8-10 in IDA) of individuals in each role

 To determine what to do, what to delegate and

what to closely monitor

 To identify the partnership dynamics (avoid

• verlap and gaps)

Definitions:

Overlap

 Two or more staff share the same unique

strengths Gap

 Nobody has a unique strength in a critical

area

Organizational Structure

 Partners  Directors  Advisors/mentors  Employees – Fulltime and part time  Strategic alliances  Consultants  3rd party suppliers

Securing Resources

 Personal and business network and network

• f network

 On line search sites: Workopolis, Monster,

etc.

 On line network sites: LinkedIn  Traditional agencies

Compensation Considerations

 Salary  Salary + individual or company bonus  Salary + shares/equity  Sweat equity  Fees

Note: As much as possible preserve equity for funding options

Organization Locations

 Central Office  Satellite Offices  Shared Offices  Home offices  Mobile

Funding Your Organization

 Private funding

 Self, Family and friends  Deep pockets friends and family

 Crowdfunding  BDC  Misc. Government programs  Angel Investors  Venture capitalists  Banking institutions  IPO

Rule of thumb: Line up funding before you need it

Thank You for Your Attention Q&A