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:

1) 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.