When Should Companies Rethink Their Hierarchy & Structure?

Recently, Heather Chaet, a journalist who’s articles appear regularly on Bank of America’s Small Business section, inquired about knowing when companies need to modify their hierarchy and internal structure.

Our Director of Marketing, Christina Kugel responded on my behalf after we reviewed the subject matter together. Below is what appears in the article. If you would like to see the article on Bank of America’s website, please click here.

When your growing team demands more and more of your time

TeliApp Corporation, a high-tech startup that builds new smartphone apps for mobile devices, went through a major expansion—a good sign of growth and success, yet the company’s organizational issues also grew. “Prior to expanding, the company consisted of me, a CTO, a graphic designer, and a handful of programmers, all answering to me,” says CEO Josh Weiss, “As business began to pick up, we had no choice but to bring on more people. We added a marketing department, a business development/sales department, more graphic design personnel, and a social networking internship program. [However] every decision was still coming to me—and my email was flooded hourly with questions from my employees.” Weiss had to make a change. He drew up a flow chart, designating department heads (based on job performance and experience) to take on more responsibilities and is searching for a COO. “I could no longer be the only ‘go-to’ guy. Establishing a hierarchy is essential for a clear distribution of responsibility and to avoid duplication of work and enhance efficiency,” says Weiss.