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

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 Desire Ability Responsibilty I D A Financing/investor 10 8 8 Reserved relations 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 overlap 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  3 rd party suppliers

Securing Resources  Personal and business network and network of 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