What’s your best guess? getting clients or even looking for investors? You’ll never guess it!
It is actually finding the right design for your business which is known as organizational design.
This requires inventing a new solution to resolve a dilemma and decisions made with regard to formal structure, roles and processes directly impact the jobs and careers of employees. It also affects the impact founders and CEO’s ability to realize its strategic objectives.
“Organization design” involves the creation of roles, processes, systems, and structures to ensure that the organization’s goals can be realized.
The field of organization design sits at the intersection of strategy, operations, law and HR.
1. An important driver for organization design is the organization’s strategy – but the design of the organization may also to a great extent determine which strategies you may be able to form in the first place.
2. You should, in general, attempt to align the organization with the work processes – so there is a close link between operations and organization design.
3. The design of the organization is also influenced by laws, regulations, and governance principles adopted by the industry sector.
4. Last but not least, organization design is fundamentally about people. People inhabit the roles that are defined in the organization design process. People participate in design processes and also influence designs in many direct and indirect ways.
Organizational design involves two important forms of capital: human capital and organizational capital. Consideration of these two are invaluable when considering going into a financial capital strategy. Namely, because human capital is typically the #1 expenditure category when you break down the use of proceeds for most emerging businesses. How effectively and efficiently you’ve architected your organization, signals how much financial capital might need to support organizational infrastructure, opening new divisions, or investing in key operating systems as examples.
So, whether you are startup moving into early-stage or an early-stage business moving into a growth stage of business, an appropriate level of attention is well placed as part of an overall capital readiness strategy. This most certainly is an area being looked into during due diligence by prospective investors. So, to increase your odds of being funded by potential prospects, be certain to give attention to your company’s organizational design.
Want to get prepared to raise capital successfully?
Download our Free Fundraising Checklist Here: https://thechangeagenthub.net/fundraising-checklist
Once you receive the checklist you’ll be redirected to a video walkthrough so you can use this checklist most effectively. And you’ll also be invited to check out our 9-step fundraising preparation roadmap with detailed information called Impact Incubator Immersion. This program is the exact process all our impact clients have used to raise capital successfully.
