What Is Structuring?
Structuring takes the focus off of pure functionality and places it toward having a fully functioning business. In order to keep the business running smoothly, you need to make sure everything runs as intended.
Structuring is a way that helps with setting up a system for managing resources and resources according to their assigned purpose within a business. Companies use structuring all the time in order to establish a routine, establish deadlines, track statistics and follow up on projects as needed. In addition, structuring is used as a way of scaling various aspects of a business such as offering different packages or storage/offsite options for files and data respectively.
Types of Structuring
There are three main types of structuring in business which include, functional, horizontal and vertical.
Functional Structuring. This structure is ideal when you want to have a set hierarchy when communicating across the organization. This structure is also known as top-down in which employees report to the manager who reports to the senior manager who reports to the CEO etc. The benefit of using this type of structuring is that there are clear lines of communication up and down the chain which allows for everybody in the business to easily know who they would report directly to within the organization. This type of structure is not the best when the company is small as it may be too much of a management time trap.
Horizontal Structuring. This structure is ideal for companies who opt to have multiple departments. Each department has its own manager and its own workers which means they all report to different managers instead of one senior manager on top of them all. This structure is ideal for various medium-sized businesses on up as it allows for better communication on a more local level. The benefit of using this type of structuring is that there are clear lines of communication between each department which makes it easier for everybody to know who they would report directly to within the organization. This type of structure is not the best when the company is small as it can be very time consuming.
Vertical Structuring. This structure is ideal for companies who opt to have multiple departments on the same level. Each department will have their own manager on top of them all which allows for better communication between each department without having to go through multiple managers on each department. The benefit of using this type of structuring is that there are clear lines of communication between each department on the same level which makes it easier for everybody to know who they would report directly to within the organization. This type of structure is not the best when the company is small because you need more management time since you have more people involved across multiple departments.
How to Structure Your Businesses
Fintalent’s business development experts follow a step by step process that has helped businesses structure their operations to optimize their resources. All business managers and our clients have to do in this case is follow the simple steps developed by Fintalent Freelance Business Development Experts who have over the years gathered complementing experience in Strategic Planning for Growth as well as in Organizational Development. These Fintalent experts will ensure your business is well structured to take advantage of its areas of strength.
