Organizational Chart and Hierarchy: a Business Case

The business case below will allow you to apply your knowledge of organizational hierarchy and to demonstrate the use of establishing a hierarchy in a growing business.

You are a management consultant working independently. Your specialty is helping companies establish and implement a sound structure to optimize the decision-making process and strategic effectiveness. You receive a call from the president of a small but quickly growing tech startup. "I can really use a hand - I am so overwhelmed. In the past six months, our company raised a round of financing and increased our sales by a factor of 10. The problem is that we're all over the place and that some processes take so long to get completed."

You take some notes regarding their current processes:

• The start-up never established a corporate hierarchy because "Who has time for that?" according to the president.
• The company has two functions, sales and development; however, there are no clear functions or managers. "Everybody works on everything. I'm the president and I spend half of my time developing based on orders given to me from other programmers."
• The company has the budget to hire two managers, one for sales and one for development.

Required

Write a brief email of 100-200 words explaining why the president feels so overwhelmed and how an organizational structure can truly benefit his or her company. Once you complete it, draw a preliminary organizational chart, including the two newly hired managers that will be used by the president as a starting point for establishing a hierarchy.