[Management Column Vol. 56] Organizational Forms in Management (Functional Organization and Divisional Organization)
This is a column written by our representative, Kazuaki Sawada, detailing the insights he has accumulated in the field of business revitalization, management improvement, and bank relations.
We provide content that serves as decision-making material for managers, ranging from reading monthly trial balances, dialogue with banks, organizational restructuring, to business succession.
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Please use this as hints for management decisions, such as building a management foundation, improving management quality, cash flow management, banking relations, business succession, and restructuring after the appointment of the second or third generation. If you have any questions or inquiries when putting this into practice, please feel free to contact us.
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When a company is small, concentrating authority in the hands of top management allows for quick decision-making and strong leadership. However, as the company grows in size and increases its locations, it becomes difficult for the top management to directly grasp the situation on the ground, leading to delays in decision-making and communication gaps. This is where we want to consider a "business unit organization." By dividing the business based on products, customers, regions, etc., authority and responsibility are delegated to the heads of each business unit, allowing them to operate as if they are managing a single company. What is important is not to seek a definitive answer in the organizational structure itself. It is essential to review the distribution of authority and responsibility in accordance with the company's growth stage. Related article: Are executives becoming critics? How small businesses can break free from a "CEO-dependent" organization https://www.consulting-network.jp/column-029-executive-ownership Next time, we will discuss "how to develop a management plan in times of emergency."
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Our company is a group of professional consultants who value practical insights born from responding to corporate needs. With practical management know-how and a strong belief, we solve management challenges and achieve everything from startup support, reconstruction and revitalization support, growth expansion support, and business continuity support to building a solid management foundation.
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