Dr. Wilfred Isak April
LAST week I talked you through the importance of customer service excellence and I am convinced that you learned a lot.
The success of any enterprise does not only depend on service or how much profit you raised. It is also determined by the structure of your business. As an entrepreneur I encouraged you to develop a vision, passion and the desire to apply all you have learned over the past few weeks to create a perfect enterprise. When you join manpower to create a business, each person usually brings a set of skills. It makes perfect sense to allow the accountant to handle finances. However, as an owner you have to be aware that numbers can impact the salesperson’s ability to source new business. Even more, it might happen that the money needed to build a technical platform is greater than the marketer’s ability to get the product out to the market. When faced with dilemmas of this nature it will be important for you decide how decisions have to be made and who the key players in the process would be.
Just think about your own business right now, are decisions usually taken if there is a consensus, or does the majority vote enjoy preference? You may be aware that the more people are involved in the decision-making process, the more time will usually be required, but there is a possibility that people will buy into the choice made. There are numerous organizations in Namibia where the board or committee has to make tough and unpopular decisions that might not be favourable to all. Usually when tough and unpopular decisions are made people vie for a position within an organization, sometimes it’s for personal gain and things can get very ugly. At this point someone really needs to take a stand and this will clearly be reflected in your organizational structure. In a typical hierarchical structure, a Managing Director (MD) or the Chief Executive Officer (CEO) is usually at the top of the pyramid and is usually guided by a board of directors. As the owner or managing director of your business your responsibilities include implementing the policy of the business, showing people how the strategy for success will be implemented, ensuring that there are clear-cut communication lines to employees, as well as ensuring that the vision of the business is achieved.
On the other hand, flat structures are usually common in small companies, but the enterprise becomes complex and hierarchical as it grows. Let me remind you at this point that as an owner or someone in charge of a business, you have to turn your leadership style into a team effort. However, you are the captain of the ship, and all teams need a great captain, whether it is a church choir, sports team or in the business environment. The choices you make as the captain will determine whether your business is a success or a total failure. If things don’t go well, the captain is usually replaced. This point clearly shows that the team looks like a leader. In the end everyone in the organization is alike. That is why you always hear this line from customers – Can I speak to the owner?
When you are managing your enterprise always try to share the workload and make sure that the primary responsibility of each team member is clearly defined. The project and functional managers must have the ultimate authority in their area of expertise. Organizational structures are important for business success, and it is very important that everyone knows the rules from the start. Any game can be great if not excellent if everyone knows the rules that can change as the business grows and expand, but accountability is essential. This implies that it is important to closely observe how each person in a leadership position moves and makes decisions, how they impact the budget and the resources to meet deadlines.
Dr. Wilfred Isak April is a University of Namibia (Unam) graduate and holds a PhD in Entrepreneurship (New Zealand). He lectures in Leadership, Organizational Behaviour and Entrepreneurship at Unam.
Dr. Wilfred Isak April