I was listening to an audiobook by Drucker (Managing in the Next Society, 2002) and he described an effective process to resolve management crunches that occur as businesses grow.
He described that typically at the end of the 4th year, around 40 employees, the company outgrows it’s management base, creating a management crunch. To resolve this:
- Identify people in the company with management ability. Get them together in a room.
- Everyone is given the assignment to say what everyone else is good at—not self
- Reconvene, list out core business processes (key activities)
- Assign responsibility for each process to to best-fitting person(s)
The net result will be that everyone will be given an extra load, some might be reassigned to an area of the business they will fit better. Agile reorganization—I like it!
