[Column] ➇-➂ The Illness of Small and Medium Enterprises: Struggles in Building an Organization

I would like to introduce a column article.

There is a problem with "rule and standard creation." In company operations, there are "activities" and "management." Activities involve breaking new ground, while management involves controlling the harvest. Activities take priority, but if there is too much focus on activities without proper management, it can lead to wasting the fruits that could have been harvested. The foundation of effective management is "rule and standard creation." When the number of employees reaches around 20, managers tend to want to create an organizational chart. I understand that feeling. However, there are issues with how organizational charts are created. Many companies assign positions to "people." This is a mindset similar to that of a shogi player. As a result, the organization does not function properly. The goal is not to assign positions. First, it is essential to consider what functions are currently needed by the company. If those functions are unclear, simply assigning people will not lead to functionality. Even if there is an organizational chart, the responsibilities and scope of work for those in positions become unclear. An organizational structure where nothing flows without going through the president is a typical example of this. Many companies struggle because they have just created an organizational chart.

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