STEP #1: Basic Business Model ~ Roles + Responsibilities
If any business is to perform optimally, there five basic business functions (departments or divisions), as per the following diagram. These business functions need to be carefully planned, implemented and managed to ensure sustainability and success.
Each element has to be planned, implemented, executed and managed to the smallest detail, as each business function directly influence the other. Thus it is imperative that every business function has a designated person who is assigned to the role and takes full responsibility for that division.
Failure of any of these business functions, will be to the detriment of the business as a whole. Therefore, once roles have been assigned and accountability accepted, each division needs to have business tasks carefully planned, communicated and agreed upon. Effective communication with each of the department heads will ensure everyone is on the same page and heading in the same direction.
And that is just the beginning… The business model, organisational structure and business processes need to be carefully integrated with the selected business systems and solutions. There are very few businesses that can survive without some form of technology these days. However, regardless as to how superior the technology may be, it is the people that make the business what it really is – Adding the true value to the business and all stakeholders concerned.
Basic Organisational Structure: Executive Team
The following diagram is a basic organisational structure – As mentioned above, each business function (or department) will have a dedicated person responsible for one or possibly more of these departments, depending on the size and stage at which the business is at.
Smaller start-ups, may have one person taking responsibility for two or possibility three of the business functions – As the business grows, these responsibilities are usually handed over to another person to manage. Over time, if growth continues, these people will most likely become heads of their department and then move on to manage a team of people for their particular division… And as the organisation organically grows, strong leaders will move onto head up the ‘Executive Team’ (senior management), which overseas all strategic and high-level management on behalf of middle management and their teams.
As per the business plan, that will soon be available for download from this website (*See ‘Business Plan Information: Technical Information’ & ‘Business Performance & Analysis Report’ in particular), you will be able to undertake detailed task planning, implementations, performance management and monitoring for each of the relevant business functions (departments).
Below you can find further details for each of the business functions (departments), along with the relevant titles for the heads of those departments and a brief overview of the responsibilities of those senior managers concerned.
CEO: Chief Executive Officer
TEAM: Executive Team
A chief executive officer (CEO in American English) or managing director (MD in British English) describes the position of the most senior corporate officer, executive, or administrator in charge of managing an organisation. The CEO of a corporation or company typically reports to the board of directors and is charged with maximizing the value of the entity. Titles also often given to the holder of the CEO position include president and chief executive (CE). The CEO will need to lead and drive all facets of the business on an ongoing basis to ensure sound strategies are being planned by senior executives and implemented by top and middle management. The CEO needs to take primary responsibility of the overall operation of the organisation to ensure sound, profitable and ethical business practice. The CEO needs to have the vision, as well as the business and technical knowledge to direct the organisation in multiple facets of business, as per the key business functions.
Below are the basic business functions that need to be accounted for in almost any organisation:
A chief innovation officer (CINO) or chief technology innovation officer (CTIO) is the person who is primarily responsible for managing the process of innovation within an organisation. In many instances, the Innovation & Strategy Team are “the originators of new ideas”, but also recognise, review and accredit innovative ideas generated by other parties. The CINO is the primary custodian responsible for identifying new products and services. They also identify new niche market sectors for existing products and services that can further enhance a brand’s offering. This is to be done in conjunction with other key members within the organisation. Once a new product, service or niche has been identified, the CINO’s team will need to do R&D (Research & Development) to determine the feasibility, sourcing of the right materials and the manufacturing of products and/or implementation of the best processes to ensure the best result(s). The CINO is required to liaise with all key departments to ensure that new product(s) and/or service(s) can be optimally marketed and sold; efficiently dispatched and delivered; accurately recorded and monitored to ensure worthwhile profits and/or substantial benefits to the brand. The CINO is also responsible for bringing new brands on-board, as provided by third-parties, and is the primary ‘supplier relationship manager’ (SRM) for all new brands marketed and sold through the organisation’s sales channel(s).
CHRO: Chief Human Resources Officer
TEAM: HR Management
A chief human resources officer (CHRO) is a corporate officer who oversees all aspects of human resource management, including industrial relation policies, practices and operations of an organisation. The HR Team is also the primary custodian for the personal growth, training and development of team members. They also work closely with the Innovation & Strategy, I.T and Marketing & Sales teams to develop educational materials to expand the product and service knowledge base for both team members and clientele alike. This may cover areas from basic conceptual (high level) overviews to fully fledged technical knowledge sharing platforms and training solutions through various mediums.
The chief financial officer (CFO) or chief financial and operating officer (CFOO) is a corporate officer primarily responsible for managing the financial risks of the corporation. This officer is also responsible for financial planning and record-keeping, as well as financial reporting to top management. The CFO is responsible for ensuring financial and legal compliance through business systems and HR processes within the organisation. All departments requiring finance will need to work with the CFO’s team to draft a budget that will need to be recorded, monitored and amended for optimal performance. Team members may be given limited financial controls to ensure efficient and effective business practices, but amounts surpassing certain limits will need to be approved by senior manager(s) and/or the CFO.
Chief information officer(CIO) is an executive job title commonly given to the person at an enterprise in charge of information technology (I.T strategy) and computer (business) systems. The primary objective of these business systems is to support an enterprise’s planned goals and strategies, ensuring optimum performance between individual team members in accordance to the business’ policies, processes and procedures. The CIO’s team needs to deliver business systems that offer a ‘human touch’… And to ensure all team members, suppliers and customers can benefit from user-friendly business systems designed to drive simplicity, efficiency, effectiveness and convenience for all concerned. Business systems need to be as simple and intuitive as possible, but also powerful enough to facilitate accuracy, sufficient monitoring and analysis of all business functions, for continuous improvement.
A chief marketing officer (CMO) is a corporate executive responsible for marketing activities within an organisation. Most often the position reports to the chief executive officer. The CMO will oversee a wide spectrum of marketing functions from traditional to digital marketing. The CMO will also head up the direct sales team(s) that fall under the traditional marketing branch, of the marketing team, when applicable. Digital marketing will include a design team for the planning and implementation of marketing technologies in correlation with the Technology & Business Systems Team (CIO’s Team).
A Chief Operating Officer (COO) is the executive who oversees business operations within the company. The COO reports to the CEO (Chief Executive Officer) and is usually second-in-command within an organisation. The operations team must always ensure efficient and effective customer correspondence. This may include business processes from customer enquiries through various income streams (or channels); order processing and dispatch; arranging of logistical services; inventory management; after sales service and obtaining testimonials following every sale etc. – The primary objective is to ensure the quickest and smoothest delivery of products and services, whilst delivering happiness to all involved.
*Role: General Management (GM’s Purpose – Get people doing the right things at the right time).
Responsibilities: Back of House
General Management (GM) of selected divisions/ departments
Strategy implementation (Medium to long term goals) to a specific plan, as agreed with top management
Tactical implementation (short term goals and objectives), as agreed with team members and middle management
Ensure staff are performing at their optimum
Ensure staff have deadlines set for every task and are meeting these in accordance to the strategic or tactical objectives
Performance monitoring, analysis and improvement at set time periods
Experience optimisation for staff and customers (*All concerned)
Other general management roles for your department (under your control)
Senior management need to ensure that the middle management and/or team leaders are fulfilling their roles as best they can, through the relevant systems and processes. To guarantee quality, service and overall experience for all concerned. Every task and objective (*No matter how small, or large) needs to have clearly defined goals and timelines (*Deadlines) – These need to be clearly understood, warrant full engagement, can be monitored, measured, analysed and amended to guarantee optimum performance and best results. Ensure all people, systems and processes are operating with full efficiency and effectiveness at all times.
Implementation of the simple, measurable, accurate, realistic and timely/ relevant (*S.M.A.R.T) theory through systems, people and processes. Thus, to ensure optimization of systems, people and processes to measure, analyse and improve all relevant business attributes on a continuous basis. Definition needs to be given to determine if the various elements need to be measured (monitored), analysed and adjusted on a daily, weekly, monthly, quarterly, biannual or annual basis. These should not be cast in stone and we should allow for some flexibility, if and when required, to ensure that systems, people and processes can operate to obtain best results.
Passion, Discipline and Method are our key criteria to ensure we are always doing our very best at all times. This enables us to focus on what we need to do to guarantee performance, satisfaction, success and a high quality lifestyle (*Work/ Life/ Happiness Balance). Our behaviour and commitment should drive us and others to high motivation – This should initiate high performance in all aspects of the business, whether it is contractually agreed or self-driven. We should strive to empower people, wherever possible, with the aim of eliminating micro-management and encouraging people to be self-motivated and accountable for their roles and responsibilities.