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Create effective Business Units in your organization
- 1. Create effective Business Units in your organization! In my first article I mentioned that all big organizations have to become flexible in order to find their pace and become competitive. I concluded that the employees have to develop/gain: Flexibility, Ownership, entrepreneurial spirit & fair game skills! The next step for the organization is to build its effective Business Units which will operate as the cells in our body. Different cells have different jobs to do. Groups of different types of cells make up the organs in our body, such as our heart, liver, or lungs. Each organ has its own job to do, but all organs work together to maintain our body. A group of different organs working together to do a job makes up a system. All the systems in our body are like members of a team whose job it is to keep us alive and healthy. In the same way the members of a business unit in a company should operate. More specifically, if we assume that a FMCG company has 4 different product categories (Tissue products, diapers, feminine care products, adult care products) each category should have a Unit manager, marketing people (depending on the turnover of the category), finance manager and a sales coordinator. The organization chart could look like that CEO Business unit Mng 1 Mkg Finance Sales Business Unit Mng 2 Mkg Finance Sales Business Unit Mng 3 Mkg Finance sales Business Unit Mng 4 Mkg Finance Sales CFO HR Sales director Sales force Logistics & Planning
- 2. The CEO has7 directreports,CFO,SalesDirector,HR & 4 BusinessUnitManagers.Theybuild the Visionof the companyand agree on the company’sstrategies.Eachspecificunitshall have each ownKPI’s& budget tohandle while the expensesare plannedbasedonthe unit strategies. The salescoordinatorof each unitcommunicatestothe widersharedsalesforce the strategies&objectivesof the UNIT, the plannograms etc. whichare agreedwiththe sales director. The finance managerbuildsthe planof hisunit,whichisalsoagreedwiththe CFO The forecastprocess takesplace ineach BU, while there isasharedteam of planning& logistics,which buildsthe plan withthe cooperationof eachFinance manager. The HR directorhasas mainresponsibility the developmentof eachmemberof the company basedon continuoustrainingand the designof hiscareerpath.The rotationof the employeestodifferentpositionsin - betweenthe differentunitsisanecessitywhichhasto be implementedevery3yearsas part of the training& development. Concluding,this way of structuringacompanybuildsunitsworkingindependently as separate cells,while its memberacquiresownership,flexibility&entrepreneurial skills.The total group of cellscreate the widerorganization whichcanhave ahealthy andlongterm growth.