organisation and management team in business plan

How to Write the Management Team Section of a Business Plan + Examples

Written by Dave Lavinsky

Over the last 20+ years, we’ve written business plans for over 4,000 companies and hundreds of thousands of others have used the best business plan template and our other business planning materials.

From this vast experience, we’ve gained valuable insights on how to write a business plan effectively , specifically in the management section.

What is a Management Team Business Plan?

A management team business plan is a section in a comprehensive business plan that introduces and highlights the key members of the company’s management team. This part provides essential details about the individuals responsible for leading and running the business, including their backgrounds, skills, and experience.

It’s crucial for potential investors and stakeholders to evaluate the management team’s competence and qualifications, as a strong team can instill confidence in the company’s ability to succeed.

Why is the Management Team Section of a Business Plan Important?

Your management team plan has 3 goals:

To prove to you that you have the right team to execute on the opportunity you have defined, and if not, to identify who you must hire to round out your current team
To convince lenders and investors (e.g., angel investors, venture capitalists) to fund your company (if needed)
To document how your Board (if applicable) can best help your team succeed

What to Include in Your Management Team Section

There are two key elements to include in your management team business plan as follows:

Management Team Members

For each key member of your team, document their name, title, and background.

Their backgrounds are most important in telling you and investors they are qualified to execute. Describe what positions each member has held in the past and what they accomplished in those positions. For example, if your VP of Sales was formerly the VP of Sales for another company in which they grew sales from zero to $10 million, that would be an important and compelling accomplishment to document.

Importantly, try to relate your team members’ past job experience with what you need them to accomplish at your company. For example, if a former high school principal was on your team, you could state that their vast experience working with both teenagers and their parents will help them succeed in their current position (particularly if the current position required them to work with both customer segments).

This is true for a management team for a small business, a medium-sized or large business.

Management Team Gaps

In this section, detail if your management team currently has any gaps or missing individuals. Not having a complete team at the time you develop your business plan. But, you must show your plan to complete your team.

As such, describe what positions are missing and who will fill the positions. For example, if you know you need to hire a VP of Marketing, state this. Further, state the job description of this person. For example, you might say that this hire will have 10 years of experience managing a marketing team, establishing new accounts, working with social media marketing, have startup experience, etc.

To give you a “checklist” of the employees you might want to include in your Management Team Members and/or Gaps sections, below are the most common management titles at a growing startup (note that many are specific to tech startups):

Founder, CEO, and/or President
Chief Operating Officer
Chief Financial Officer
VP of Sales
VP of Marketing
VP of Web Development and/or Engineering
UX Designer/Manager
Product Manager
Digital Marketing Manager
Business Development Manager
Account Management/Customer Service Manager
Sales Managers/Sales Staff
Board Members

If you have a Board of Directors or Board of Advisors, you would include the bios of the members of your board in this section.

A Board of Directors is a paid group of individuals who help guide your company. Typically startups do not have such a board until they raise VC funding.

If your company is not at this stage, consider forming a Board of Advisors. Such a board is ideal particularly if your team is missing expertise and/or experience in certain areas. An advisory board includes 2 to 8 individuals who act as mentors to your business. Usually, you meet with them monthly or quarterly and they help answer questions and provide strategic guidance. You typically do not pay advisory board members with cash, but offering them options in your company is a best practice as it allows you to attract better board members and better motivate them.

Management Team Business Plan Example

Below are examples of how to include your management section in your business plan.

Key Team Members

Jim Smith, Founder & CEO

Jim has 15 years of experience in online software development, having co-founded two previous successful online businesses. His first company specialized in developing workflow automation software for government agencies and was sold to a public company in 2003. Jim’s second company developed a mobile app for parents to manage their children’s activities, which was sold to a large public company in 2014. Jim has a B.S. in computer science from MIT and an M.B.A from the University of Chicago

Bill Jones, COO

Bill has 20 years of sales and business development experience from working with several startups that he helped grow into large businesses. He has a B.S. in mechanical engineering from M.I.T., where he also played Division I lacrosse for four years.

We currently have no gaps in our management team, but we plan to expand our team by hiring a Vice President of Marketing to be responsible for all digital marketing efforts.

Vance Williamson, Founder & CEO

Prior to founding GoDoIt, Vance was the CIO of a major corporation with more than 100 retail locations. He oversaw all IT initiatives including software development, sales technology, mobile apps for customers and employees, security systems, customer databases/CRM platforms, etc. He has a B.S in computer science and an MBA in operations management from UCLA.

We currently have two gaps in our Management Team:

A VP of Sales with 10 years of experience managing sales teams, overseeing sales processes, working with manufacturers, establishing new accounts, working with digital marketing/advertising agencies to build brand awareness, etc.

In addition, we need to hire a VP of Marketing with experience creating online marketing campaigns that attract new customers to our site.

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Other Resources for Writing Your Business Plan

How to Write an Executive Summary
How to Expertly Write the Company Description in Your Business Plan
How to Write the Market Analysis Section of a Business Plan
The Customer Analysis Section of Your Business Plan
Completing the Competitive Analysis Section of Your Business Plan
Financial Assumptions and Your Business Plan
How to Create Financial Projections for Your Business Plan
Everything You Need to Know about the Business Plan Appendix
Business Plan Conclusion: Summary & Recap

How to Write Management Team Section in a Business Plan

Free Ultimate Guide On Writing A Business Plan

May 1, 2024

A business is as efficient as its team and its management. Therefore, it becomes important for business owners to build a structured management team that achieves the objectives and goals set by the organization.

Andrew Carnegie, an American steel magnate, beautifully summarized it –

“Teamwork is the ability to work together toward a common vision. The ability to direct individual accomplishments toward organizational objectives.”

A business management plan helps build an efficient team and formalizes business operations. This helps businesses streamline strategies to achieve their goals.

So, if you are a business owner who is looking to formalize their business structure and write the management team section in their business plans, this guide is for you.

Here’s a sneak peek into what you’ll learn:

Sounds good? Let’s dive in.

What is the Management Section of a Business Plan?

The management section of a business plan is an in-depth description of a business’s team, its structure, and the owners of a business.

The section discusses ‌who is on the management team—internal and external, their skill sets, experiences, and how meaningfully they would contribute to an organization’s mission statement and goals.

Now that we have defined what the management section of a business plan is, let’s understand why it is so important.

Importance of a Business Plan Management Section

The management section helps you to

Showcase leadership: The management team section helps you showcase how qualified and experienced team you have.
Clarify team roles: It outlines who does what in your team, ensuring everyone knows their key performance areas and works together towards the same goals.
Attract investors: Present your team in the best possible way, as it is one of the key factors in making the final investment decision.

What to include in the Management Section of a Business Plan?

Now that you know why exactly a management section in the business plan is necessary, let’s move ahead with what to include in it:

1. The Management Team

An organization’s entire management team can be divided into parts — the internal team and the external team. Let us see those in detail:

The Internal Management Team

A business team consists of several departments. The most common departments are—marketing, sales, IT, customer service, operations, finance, and HR.

These departments depend on the nature and functioning of your business. For example, a dental clinic may not require a sales department per se.

The entire management team is distinguished according to their responsibility. This helps the business owners and investors be aware of the roles, benefits, ESOPs (if applicable), profit sharing (for sales), work contracts, NDAs (Non-Disclosure Agreements), and Non-Competition Agreements of the entire team.

It is recommended that business owners collect and document the following information about their team:

Educational Background
Work Experience
Accomplishments

For example, your present VP of Marketing helped their previous company grow its bottom line from $3 million to $10 million over 18 months.

The External Management Team

The external management team is usually composed of—advisory board members and professional services.

Advisory board members help by:

Bringing their industry expertise, experience, and knowledge to the table.
Offering strategic advice and helping the business develop long-term goals with future considerations in mind.
Having a lot more contacts than any other individual can help businesses grow.

Credible advisory board members show great commitment to a company’s growth. Therefore, it becomes important to mention their experience and specialization in the business management plan.

The advisory board members can help give valuable advice that internal team members need or lack.

Usually, board members meet quarterly or monthly to provide strategic guidance in place of stock options in your company. This helps attract the best advisors and motivates them to invest in your business.

On the other hand, professional service helps by

Offering highly specialized advice and sharing knowledge.
Helping through the implementation process of strategies.

Such services help businesses leverage skills that would be difficult to build and acquire over a short period.

Examples of such professional services are:

IT Consultants
Business coaches and consultants

After a brief overview of the management team, let’s move forward.

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organisation and management team in business plan

2. The Management Team Gaps

The management team gap is an important part of the management section. Primarily because it helps document if your management team currently has gaps or missing skills.

Your team may lack a few required skills while starting. The management team gaps help you to be aware and make efforts to close this gap.

As a business owner, you must document what positions are missing and who ought to fill those positions or take responsibility.

For example, if you need a VP of Sales, clearly document this in the section.

Also, write down the job description and key responsibilities to be undertaken. For example—you might mention that the role requires 10 years of experience in the sales domain. The applicant must have experience handling a sales team, closing new accounts, and working in tandem with the marketing team.

Be as detailed as possible. This will help you build a checklist while interviewing the right candidate and also win investor confidence in your managerial skills.

Here are a few key positions you would want to include in your management team business plan:

Founder and/or CEO
Chief Technical Officer (CTO)
Chief Marketing Officer (CMO)
Head of Product Management (PM)
VP of Sales
VP of Marketing
Business Development Manager
Customer Service Manager
Sales Managers/Sales Staff
Human Resources Manager
Advisory Board Members

3. The Management Structure

The management structure defines how a business organizes its management hierarchy. A hierarchy helps determine all team members’ roles, positions, power, and responsibilities.

The management structure also depends upon the type of business ownership. Business ownership can be—a sole proprietorship, partnership, or LLC.

Following is a sample management structure of an organization.

Now that we understand what details we need to document in business management plans, let’s have a look at the example.

Example of a Management Section Plan

[management section of a hotel], [management team], internal team members.

Name: Charles Fargo Role: Owner Responsibility: Formulating key strategies, defining budgets, and building a business plan Experience: 35 years of owning multiple hotels in Las Vegas Educational Background: B.Sc in Hospitality Management from South Dakota State University.

Name: Michael Clark Role: General Manager Responsibility: Overall hotel operations – guest interactions, revenue management, brand ambassador of the hotel, customer satisfaction, and experience, leadership to all departments Experience: 25 years working with several technology hotels as the general manager. Educational Background: MBA from Wharton School

Name: George Trump Role: Department Manager Responsibility: Manage employees, smooth coordination amongst employees, plan daily affairs of the department, strategize, prepare reports, and deal with complaints and suggestions. Lead team members to function as a team Experience: 15 years working as a department manager Educational Background: BSc in Hotel Management from Texas University

Note: There can be multiple Department Managers depending on the nature of your business. In the case of hotels, departments can include – housekeeping, logistics, security, food, and banquets.

Name: Donald Clooney Role: Marketing and Sales Manager Responsibility: Increase occupancy and generate revenue. Position the hotel as an option for leisure activities, relaxation, and holidays. Experience: 11 years working as the marketing and sales manager for hotels Educational Background: MBA in Tourism and Hospitality from Midway University

Name: Oprah Williams Role: Human Resources Manager Responsibility: Recruit and train hotel staff, maintain smooth onboarding process for new recruits, train, counsel, and coach staff, resolve conflicts, and conduct performance reviews Experience: 9 years working as human resources manager for hotels Educational Background: MBA in Human Resources Management from California University

External Team Members

Advisory Board Member

#1 Richard Branson Responsibility: Strategic advisory for sustainable growth and expansion Experience: Founder of Virgin Group

Professional Services

#1 Digital Marketing Agency – Neil Patel – Help market and sell our product using digital mediums – blog, website, YouTube, and social media.

[Management Structure]

There is a gap in one key position in our startup.

#1 Chief Finance Officer (CFO) Responsibilities: Finance, Accounting, Tracking Profit and Loss, and overseeing FP&A (Financial Planning and Analysis)

So, that’s it for today! Now that you know how to write a management team section, make sure you write the best one by mentioning all the necessary details.

If you are still confused about writing the management team sections, then you can visit various sample business plans to know more. You can even use smart business planning software to smooth your business planning process.

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Frequently Asked Questions

What tone should i use when writing the management team section.

When writing about your management team in your business plan, use a tone that’s confident, professional, and positive. This shows investors that your team is experienced, qualified, and able to lead your company to success.

Who should be included in the management team's business plan?

In the management team of a business plan, you should include all the key members of the company:

Top management
Founder/CEO
VP of sales

Do I need to include personal information about team members?

In a business plan, it’s not necessary to include personal information about team members unless it directly relates to their role in the business. The focus should be on professional qualifications, experience, and skills that are relevant to their position.

About the Author

Upmetrics Team

Upmetrics is the #1 business planning software that helps entrepreneurs and business owners create investment-ready business plans using AI. We regularly share business planning insights on our blog. Check out the Upmetrics blog for such interesting reads. Read more

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Business Plan Organization and Management: How to Write Guide .

Sep 17, 2023 | Business Consulting , Business Plan , Organization and Management , Organizational Development , Strategy

Every successful business plan should include a section on organization and management. This section will help you communicate your vision for your business's structure. Here's a guide on how to write an effective section.

Writing the Business Plan Organization and Management Section

It provides critical information for those looking for evidence that your staff has the necessary experience, skills, and pedigree to realize the objectives detailed in the rest of your business plan.

What Is the Organization and Management Section in a Business Plan?

The organization and management section of your business plan should provide details about your business structure and team. This section typically comes after the executive summary. However, some people have it further in the document after the market analysis section.

This section generally is separated into two parts. The first concerns the organization as a whole. It gives readers an overview of the company structure, which is an excellent opportunity for the reader to lift the roof off your office and peer into its inner workings. For your legal design, you may set up as a limited liability company (LLC) or nonprofit/ charity or form a partnership. It’s crucial to include this section. However, suppose you’re starting a home business or have an already operating business where you’re the only person involved. In that case, you can skip this section or show the company registration details from either the company’s house or the awarding .gov.

The second part focuses specifically on your management team and introduces readers to each member — your chance to impress them with the many accomplishments pinned to your organization’s management team.

This section may seem less important than some of the other parts of your business plan, but the truth is that your people are your business. If they’re highly competent and accomplished, the implication is that so is your business.

Of course, if you’re a sole proprietor with no management structure or any employees, this section is unnecessary other than to talk about yourself and your achievements.

The section on organization and management should outline the hierarchy, individual roles, and corresponding responsibilities. It should also highlight each person’s strengths and qualifications for their positions.

Business Plan Organization Section

The organizational section of your business plan outlines the hierarchy of individuals involved in your business, typically in a chart format. This section identifies the President or CEO, CFO, Director of Marketing, and other roles for partnerships or multi-member LLCs. If you’re a single-person home business, this section is straightforward as you are the only person on the chart.

Although this section primarily focuses on owner members, you can include outsourced workers or virtual assistants if you plan to hire them. For example, you may have a freelance web admin, marketing assistant, or copywriter. You may even have a virtual assistant who coordinates with your other freelancers. While these individuals are not owners, they hold significant responsibilities in your business.

There are various business structures, such as sole proprietorships, partnerships, LLCs, and corporations.

Detail the Legal Structure within the Business Plan Organization and Management Section

Here is an indicative list of business structures. It would help if you talked to your accountant and legal advisors to determine which legal form is the best for your business proposition.

Sole Proprietorship

When embarking on a business venture, it’s essential to consider the various structures available. A sole proprietorship is a structure whereby the business is not regarded as separate from its owner’s finances. The owner retains complete control and responsibility for the company. However, they are unable to sell stocks or bring in new owners. The business becomes a sole proprietorship if not registered under any other structure.

Partnership

When forming a partnership, it can either be a limited partnership (LP) or a limited liability partnership (LLP). One partner assumes most liability in a limited partnership (LP). In contrast, the other partners have limited liability and control over the business. Alternatively, in a limited liability partnership (LLP), all partners have limited liability from debts and actions of other partners, and there is no general partner.

Limited Liability Company

A limited company (LTD) or limited liability company (LLC) is a mixture of business structures that mixes aspects of partnerships and corporations. It offers limited personal liability to the owner and passes profits through to their tax returns.

Corporation

There are various types of corporate structures. A C-corporation enables the issuance of stock shares, pays corporate taxes instead of personal returns, and provides the highest level of personal protection from business activities. On the other hand, nonprofit corporations are similar to C corporations. However, they do not aim to make profits and are exempt from state or federal income taxes.

More information on company legal structures is available on UK.Gov and USA.SBA websites.

Describe Your Company’s Organizational Structure

This first step illustrates the positions in your organization’s employee hierarchy and how they all relate to each other.

This is usually done graphically as a guide, using an organizational chart, or “org chart” for short. People use a Microsoft tool, i.e., PowerPoint or Excel, to help.

Organization Charts typically follow a top-down hierarchy, starting with your CEO/ Managing Director in the top box at the top of the page. Lines extend down from that person’s name to boxes containing the terms of the CEO’s direct reports.

We have included an example organizational chart below for guidelines only.

Showing an organizational structure for a business

Identify your business organization structure and list your team members’ strengths and skills.

Those managers then have lines extending to those who report to them, and so on, down to your lowest staff positions.

This section will give your readers a quick understanding of your management and governance structure, the size of your organization, and your lines of control and communication.

Describe your Team in your Business Plan Organization and Management Section

In your business plan’s Organization and Management section, please provide a detailed description of your team. Y ou will discuss the company’s management team, starting with the owners.

This section highlights who is involved in the running of your business and who are the support professionals. It also includes the roles and responsibilities of managers.

Suppose the company structure is a multi-owner arrangement or some other multi-owner arrangement. In that case, you’ll want to include information for every member and their percentage of ownership and ongoing involvement in the company.

It’s important to discuss how ownership interests are split, their responsibilities, what they did before securing their current position, and how they came to be involved with the company.

Here, it would help if you talked about some of your critical team members. These people are directly responsible for large portions of your business operations.

Owner/Manager/Members

Within your business o rganization and management section, y ou should introduce the team and talk about their experience, qualifications, previous companies and achievements, role in the company, and any special skills they bring with them. Please provide the following details for each owner, manager, or member of the business within your business plan:

Percentage of ownership (if applicable)
Level of involvement (active or silent partner)
Type of ownership (e.g., stock options, general partner)
Position in the company (CEO, CFO, etc.)
Responsibilities and Duties
Educational background
Relevant experience and skills
Previous employment history
Skills that will benefit the business
Awards or recognition received
Compensation structure
How each individual’s skills and experience will complement and contribute to the business’s success

Perhaps they’re an entrepreneur, business coach, exclusive advisor, or industry specialist to help you grow.

This is an ideal opportunity for companies with an Executive Board of Directors, Governance Structure, or Advisory Board to introduce them to your readers.

Executive Board

Having a board of directors is essential for your management team. Without one, you may be missing out on crucial information. This section includes details similar to those found in the ownership and management team sub-section, such as the names, areas of expertise, positions (if applicable), and involvement with the company of each board member.

Strategic Advisors

Suppose you’re looking for funding for your business or to fill a gap in your knowledge, or you may not have the funds to hire an executive board. In that case, you must inform potential partners and investors that you have a team of professionals assisting you. This includes lawyers, accountants, and any freelancers or contractors you may be working with. When listing these individuals, include their name, title, educational background, certifications, services they provide to your business, and their relationship with you (i.e., hourly rates, projects, retainer, as-needed, regular). Additionally, highlight their skills and experience that make them an asset to your team you need

Does anything else make them stand out as quality professionals (awards, past working with credible brands)?

Spotlight on the Wider Team Structure

Now, you’ve showcased the management team in its entirety. You can provide brief bios for hiring team needs or secondary members and talk at length about how the team’s combined skills complement each other and how they amplify the team’s effectiveness.

It’s also important to point out any gaps in the knowledge your team is currently suffering. Your readers will likely be savvy enough to pick up on existing holes.

Therefore, you’ll want to get ahead of these criticisms and demonstrate that you’re already aware of the positions and complementary skill sets your management team still requires and how you plan to address the knowledge gaps with future hires.

Do you need help writing your business plan o rganization and management section ?

Every successful business plan should include the organization and management section, helping you communicate your legal structure and team.

Writing a business plan can seem overwhelming, especially when starting a small, one-person business. However, it can be a reasonably simple task. This section of the plan should be updated if there are any changes to the organization structure or team members, such as additional training, awards, or other resume changes that benefit the business.

Creating your comprehensive business plan takes planning, research, time, and a herculean effort. If, at any point, the work becomes too much to handle, we can step in to assist.

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Project portfolio management (PPM) is a systematic process by project managers and project management organizations (PMOs) to evaluate the potential advantages of initiating a project. In this process, project managers play a crucial role in providing companies with predictive and business analyses for potential project investments. They do this by collating and structuring all pertinent information about proposed and ongoing projects, and by facilitating communication between team members and stakeholders.

Project portfolio management (PPM) empowers organizations and managers by providing comprehensive insights. This wealth of information allows executives to discern which project managers to engage with, and enables project managers to easily access team members. It facilitates improved communication with leadership and colleagues for team members, and ensures that stakeholders are continually informed with reliable and consistent feedback, making everyone feel informed and knowledgeable.

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Project management plays a crucial role in every business, and establishing a project management office is essential for maintaining consistency and achieving successful results. Many companies create a project management office (PMO) to ensure that projects are finished on time and within budget. But what exactly does this involve? This article will furnish you with all the essential information for setting up a PMO, covering everything from the fundamentals of a PMO to selecting the appropriate tools and procedures for your business.

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Program management is a vital component of organizational success, as it enables the coordinated execution of interdependent projects that yield benefits beyond the scope of individual project management. It involves the judicious application of knowledge, skills, tools, and techniques to meet specific program requirements. Our experience has demonstrated that organizations with well-developed program management and program management offices (PMOs) consistently outperform those that lack such structures. Therefore, it is imperative that organizations prioritize the establishment of robust program management frameworks to achieve their strategic objectives.

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How to Write the Management Section of a Business Plan

Writing a business plan is a crucial step in launching any business venture. The management section of the business plan should provide investors with a clear understanding of your team’s qualifications and the business’s organizational structure.

It should also include an action plan for the company’s future, including hiring procedures, growth objectives, and financial projections. A well-written business management plan can help convince investors to back your venture. This article will share a step-by-step guide for writing the management section of a business plan, from outlining your team’s qualifications to setting out your financial objectives.

1. Ask For Help

As mentioned on Assignmentgeek.com , professional assistance should be sought when writing the management section of a business plan as it is a critical component of the program. The management section of the program is essential in providing details about the business, such as who the key personnel are, their qualifications, and their roles in the company. It is crucial to present this information clearly and concisely to give the reader a clear understanding of the business.

Additionally, the management section should include a strategy for the business, which should be professionally crafted to ensure the company’s success. Professional assistance ensures that the business plan is organized and comprehensive and effectively communicates the information needed to make an informed decision.

2. Outline the Structure of the Management Team

Outlining the structure of your management team in the management section is vital because it allows potential investors to understand the capabilities and qualifications of the individuals in charge of running the company. It is essential for the business’s success that the management team is knowledgeable and has experience in their respective fields.

Outlining their backgrounds, qualifications, and expertise assures investors that their investment is in capable hands. Additionally, it gives investors an idea of the team’s leadership style and decision-making processes and how they will work together to achieve success.

3. Detail the History of the Business

This section is one of the most important as it provides insight into the business strategy and how it will be executed. Including a detailed business history in the section is essential to provide a comprehensive overview of the company and its operations. This helps potential investors and lenders understand the business better and gain confidence in its ability to achieve its goals.

By detailing the history of the business, the management section of a business plan can provide a clear picture of the business’s trajectory, its successes and failures, and how it has evolved. This information can help assess the business’s current performance and identify areas for improvement. It can also demonstrate the experience and qualifications of the business’s owners and management team, which can be a deciding factor for potential investors and lenders. Furthermore, the management section of a business plan can provide a platform to discuss strategies and goals, which can be better understood in the context of the business’s history.

4. Describe the Overarching Strategy

Describing a company’s strategy in the management section of a business plan is critical because it provides investors and lenders with an understanding of the company’s goals and how it intends to achieve them. It also comes as a roadmap for the company’s future, guiding the management team in making decisions and setting priorities.

A clear and well-defined strategy gives investors and customers confidence that the company is on the right track and that the management team is well-prepared to deliver results. It can also help the company stand out among potential investors and lenders, as a strong strategy is a sign of a well-thought-out business plan and a competent management team. Furthermore, it can help the company attract and retain key talent , as employees are more likely to join and remain with a company with a clear and concise strategy for success.

5. Explain the Organizational Hierarchy

Organizational structure is crucial to a business plan because it outlines the company’s hierarchical structure and how duties are delegated among different teams and employees. It is essential to explain this structure because it gives an investor an idea of how decisions come into play and how they can be implemented in the company. This organizational structure also reveals who is in charge of specific tasks and who is responsible for what, which is essential information for an investor.

Furthermore, the organizational structure also outlines how different teams within the company interact with each other and how the company is designed to support its goals and objectives. This information is vital for investors to understand because it gives them insight into how the company operates and manages its resources. Knowing the organizational structure offers relevant parties insight into how the company is structured and how it can be managed more efficiently. It also helps investors to understand exactly how the company’s strategies and objectives will be achieved.

6. Remember to Edit and Review Your Work

Editing and reviewing your work is essential when writing a business plan’s management section. It is crucial to ensure that your program is accurate and comprehensive to be used as a tool to help you achieve your business goals. Editing and reviewing your work will help ensure that all of the information is accurate, up-to-date, and relevant and that all plan sections are correctly formatted and organized.

In Conclusion

Coming up with the management section of your business plan is an integral part of launching any business venture. It is essential to provide potential investors and lenders with a clear understanding of the team’s qualifications, the organizational structure, and the strategies and plans for the company’s future.

Outlining the structure of the management team, detailing the business’s history, describing the company’s strategy, and explaining the business’s organizational structure are all necessary steps when writing the management section of a business plan. Finally, remember to edit and review your work to ensure accuracy and clarity. Utilizing a quality editing and review service can help to ensure that your business plan is of the highest quality and is ready to be presented to potential investors.

Adrian Lomezzo

Erp implementation consultant: do you need one, and how to find the right fit, 15 tips to create the ultimate collaborative workspace, choosing the right erp system implementation for small and medium businesses.

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How to Write a Great Business Plan: Management Team

The ninth in a comprehensive series to help you craft the perfect business plan for your startup.

How to Write a Great Business Plan: Management Team

This article is part of a series on how to write a great business plan .

Many investors and lenders feel the quality and experience of the management team is one of the most important factors used to evaluate the potential of a new business.

But putting work into the Management Team section will not only benefit people who may read your plan. It will also help you evaluate the skills, experiences, and resources your management team will need. Addressing your company's needs during implementation will make a major impact on your chances for success.

Key questions to answer:

Who are the key leaders? (If actual people have not been identified, describe the type of people needed.) What are their experiences, educational backgrounds, and skills?
Do your key leaders have industry experience? If not, what experience do they bring to the business that is applicable?
What duties will each position perform? (Creating an organization chart might be helpful.) What authority is granted to and what responsibilities are expected in each position?
What salary levels will be required to attract qualified candidates for each position? What is the salary structure for the company, by position?

The Management Team section for our cycling rental business could start something like this:

Jim Rouleur, Owner and Manager

Joe has over twenty years experience in the cycling business. He served for ten years as a product manager for ACME Bikes. After that he was the Operations Manager of Single Track Cycles, a full-service bike shop located in Bend, Oregon. He has an undergraduate degree in marketing from Duke University and an MBA from Virginia Commonwealth University. (A complete resume for Mr. Rouleur can be found in the Appendix.(

Mary Gearset, Assistant Manager

Mary was the 2009 U.S. Mountain Biking National Champion. She worked in product development for High Tec frames, creating custom frames and frame modifications for professional cyclists. She also has extensive customer service and sales experience, having worked for four years as the online manager of Pro Parts Unlimited, an online retailer of high-end cycling equipment and accessories.

In some instances you may also wish to describe your staffing plans.

For example, if you manufacture a product or provide a service and will hire a key skilled employee, describe that employee's credentials. Otherwise, include staffing plans in the Operations section.

One key note: Don't be tempted to add a "name" to your management team in hopes of attracting investors. "Celebrity" management team members may attract the attention of your readers, but experienced lenders and investors will immediately ask what role that person will actually play in the running of the business--and in most cases those individuals won't play any meaningful role.

If you don't have a lot of experience--but are willing to work hard to overcome that lack of experience--don't be tempted to include other people in your plan that will not actually work in the business.

If you can't survive without help, that's okay. In fact that's expected; no one does anything worthwhile on their own. Just make plans to get help from the right people.

Finally, when you create your Management section, focus on credentials but pay extra focus to what each person actually will do . Experience and reputation are great, but action is everything.

That way your Management section will answer the "Who is in charge?" question.

Next time we'll look at the next main component in a business plan: the ever-popular Financial Analysis .

First Steps: Writing the Management Section of Your Business Plan This quick guide offers tips that will help you create the management section for your business plan.

By Teresa Ciulla Jan 4, 2015

Opinions expressed by Entrepreneur contributors are their own.

In their book Write Your Business Plan , the staff of Entrepreneur Media, Inc. offer an in-depth understanding of what's essential to any business plan, what's appropriate for your venture, and what it takes to ensure success. In this edited excerpt, the authors discuss what type of information you should include in the management section of your business plan.

In the management section of your business plan, you describe who'll run the company. This may be no more than a simple paragraph noting that you'll be the only executive and describing your background. Or it may be a major section in the plan, consisting of an organizational chart outlining interrelationships among every department and manager in the company, plus bios of all key executives.

Time and again, financiers utter some variation of the following statement: "I don't invest in ideas; I invest in people." Whether this is the whole story—investors certainly prefer capable people with good ideas to inept people with good ideas—there's no doubt that you, and the people who run your company, will receive considerable scrutiny from financiers as well as from customers, suppliers and anyone else with an interest in your plan. People are, after all, a company's most important asset. Not adequately addressing this issue in a business plan is a serious failing. Luckily, it's one of the easiest parts.

Be sure to include all of the following parts, where applicable:

You. Before you can impress people with your management team, it's important to let your readers know who's at the helm and who's selecting the management team. You, therefore, have to let them know your background, including your vision, your credentials, and why you chose the management team you did. You need to briefly explain what's expected of this management team and the role you see them playing in the future of this business.

Your managers. Identifying your managers is about presenting what they bring to the table. You can provide this by describing them in terms of the following characteristics:

Education . Impressive educational credentials among company managers provide strong reasons for an investor or other plan reader to feel good about your company. Use your judgment in deciding what educational background to include and how to emphasize it.

Employment . Prior work experience in a related field is something many investors look for. If you've spent ten years in management in the retail men's apparel business before opening a tuxedo outlet, an investor can feel confident that you know what you're doing. Likewise, you'll want to explain the key, appropriate positions of your team members. Describe any relevant jobs in terms of job title, years of experience, names of employers, etc. Feel free to omit any irrelevant experience.

Skills . In addition to pointing out that you were a district sales manager for a stereo-equipment wholesaler, you should describe your responsibilities and the skills you honed while fulfilling them. Again, list the skills that your management team has that pertain to this business. Each time you mention skills that you or a member of your management team has spent years acquiring at another company, it will be another reason for an investor to believe you can do it at your own company.

Accomplishments. If you or one of your team members has been awarded patents, achieved record sales gains or once opened an unbelievable number of new stores in the space of a year, now's the time to tell about it. And don't brag: Just be factual and remember to quantify. If, for example, you have 12 patents or your sales manager had five years of 30 percent annual sales gains, this is the stuff investors and others reading your business plan will want to see.

Personal . Investors want to know with whom they're dealing in terms of the personal side, too. Personal information on each member of your management team may include age, city of residence, notable charitable or community activities and, last but far from least, personal motivation for joining the company. Investors like to see vigorous, committed, involved people in the companies they back. Mentioning one or two relevant personal details of your key managers may help investors feel they know what they're getting into, especially in today's increasingly transparent business climate.

In a longer plan, when you give your management team's background and describe their titles, go on and tell readers exactly what each member of the management team will be expected to do in the company. This may be especially important in a startup, in which not every position is filled from the start. If your marketing work is going to be handled by the CFO until you get a little further down the road, let readers know this up front. You certainly can't expect them to figure that out on their own.

Board members. Your board members, and their reasons for being included, should be a brief part of your business plan. A board of directors gives you access to expertise, provided you choose them wisely, but at the cost of giving up control of the business to them. Technically, the officers of a corporation report to the board of directors, who bear the ultimate responsibility for the proper management of the company.

A board of advisors is a less-formal entity. You can have the same kind of people on an advisory board but you don't report to them nor do they have the same power as a board of directors. Your board should be able to challenge your thinking, help you solve knotty problems, and even change management if necessary.

Outside professionals. Some of the most important people who'll do work for you won't work for you. Your attorney, your accountant and your insurance broker are all crucial members of your team. Your business plan should reassure readers that you have your bases covered in these important professional positions.

Investors want profit. They don't just give money to people they like or admire. But it's also true that if they don't like, admire or at least respect the people running your company, they're likely to look elsewhere. The management section of your plan is where you tell them about the human side of the equation. You can't control your readers' responses to that, but you owe it to them to provide the information.

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How to Write the Management Summary

Overview of the Management Summary Section of a Business Plan

Alyssa Gregory is an entrepreneur, writer, and marketer with 20 years of experience in the business world. She is the founder of the Small Business Bonfire, a community for entrepreneurs, and has authored more than 2,500 articles for The Balance and other popular small business websites.

The management summary section of your business plan describes how your business is structured, introduces who is involved, outlines external resources and explains how the business is managed.

This section backs up all of the data you've included elsewhere in the business plan by demonstrating the expertise of the team and resources behind your company.

Example of a Management Summary Section of a Business Plan

For an example of a management summary section, see the Coffee Kiosk Business Plan .

What Does a Management Summary Section of a Business Plan Include?

The management summary section covers all of the relevant information about personnel, anticipated growth and how the company is organized. This section can be broken down into the following parts:

Business Structure: What business structure will your company take, a sole proprietorship , an LLC, a partnership or a corporation? This determination will form the basis for the rest of the areas in this section.
Management Team: Who will oversee the company? If you're forming a corporation, who will make up the Board of Directors ? An organizational chart can be a good visual to use to illustrate this element.
Management Team Gaps: What are your anticipated personnel needs? How will each role, once filled, contribute to the success of your company?
Other Personnel: Aside from your Board and employees, what external support will help the business function? This could include attorneys, accountants, public relations professionals, administrative support and even an external advisory board.
Personnel Growth Plan: What are the salaries of each person to be involved with the company for the next three years? This should provide a bottom line cost for personnel expenditures.

Tips for Writing the Management Summary Section of a Business Plan

The management summary helps the reader understand who is behind the company and what personnel resources may be needed in the future. Here are a few tips for ensuring that the management summary gives the reader the information they need to accurately analyze your company's potential.

Explain the Intricacies

Very rarely does a team function exactly as outlined in an organizational chart. Describe how key personnel will interact and how roles may cross to provide a well-rounded picture of the overall management.

Relate Personnel to Business Activities

Your goal should be to directly attach personnel to an individual role and the overall success of the company. You can accomplish this by relating the specific experience of each person to the role they will play in the business.

Don't Include the Kitchen Sink

In the management summary section, focus only on the most relevant biographical information that is most important to your business plan. Put the full bios in your appendix.

Let the Team Review

When you have drafted the summary, give your key personnel a chance to review it. This will give you a chance to confirm that you've accurately described the roles and responsibilities as understood by the team.

Business Plan Management Structure: What You Need to Know

A business plan management structure can help your business identify its goals, growth plan, and structure for management. 3 min read

Business Organization

Every business, regardless of size, needs to have a solid plan in place for how it will be run. Without a business plan, it is nearly impossible to run the company smoothly or successfully. One aspect of the business plan should include the positions in the company and definitions for each position. Those definitions can identify roles and responsibilities, as well as the reporting structure for each role. As the needs of the business change and shift, the business structure likely will change as well. It's easier to make changes as you go when you have a plan in place.

When you're starting a business and need funding, you might not have any employees to fit the roles you have outlined in your plan. This list of roles could be more idealistic for how the company will operate when you have funding and more opportunities to hire employees. Smaller businesses tend to have less complicated needs than larger ones, so the process is usually more streamlined. However, all businesses need to show a clear understanding of workflow and demonstrate how it will be handled through every phase of growth and expansion.

The business plan should include:

Administration
Marketing and sales
Production and distribution of product or service execution

Larger companies need a more detailed organizational plan with procedures that have been well thought out and documented. By creating this detailed plan, you can avoid internal confusion about who is responsible for what as well as avoid duplicated efforts that waste time. When your business runs and operates smoothly, it will be more cost-effective and efficient than a business that is disorganized. With a detailed and informative business plan, it becomes clear to potential investors and employees that you know what you're doing as a business owner. Larger companies may also need additional resources to operate, such as research and development or human resources.

Organizational Structure

You can use graphics to show your company's organizational structure. Simple flowcharts and diagrams offer visual representations of the management levels within your business, as well as the positions that fall beneath each level. With a graphic, it's easier to show the reporting structure and how various departments and divisions work together. This graphic will also help you show the other employee levels within the business.

The lower-level employees are responsible for the daily tasks of the business, so you'll need to identify and recognize the types of individuals you plan to hire, the number of people needed, and their qualifications. You might choose to include details about your hiring plan, such as where you will find employees and their estimated salaries. Don't forget to include your plan for hiring independent contractors, freelance workers, or consultants. Finally, the hiring plan should include any future positions that would be added if the business is able to expand.

Management Team Section of a Business Plan

Your company's management team is essential to business success. The management team is responsible for identifying and analyzing the objectives and goals of the company. After completing these tasks, experienced management professionals can implement and enforce strategies that will lead to success. In your business plan, this team should include the managers, owners, and board of directors (if applicable).

You can include information about the management team in several sections of your business plan, depending on the style. Regardless of where you place the details in the plan, make sure to include information about the company's legal structure and a list of owners. The owner's education, experience, and other related skills should be outlined. Discuss how much of the company each owner has, as well as the role of each owner in the business operations.

If your company has a board of directors, include the name of each member. Along with their names, you should also expand on their experience, background, and credentials, as well as include their contact information. Provide additional details on the contributions provided by each member to the company, along with information about how the members will contribute to the future growth and expansion of the business.

If you need help with a business plan management structure, you can post your legal need on UpCounsel's marketplace. UpCounsel accepts only the top 5 percent of lawyers to its site. Lawyers on UpCounsel come from law schools such as Harvard Law and Yale Law and average 14 years of legal experience, including work with or on behalf of companies like Google, Menlo Ventures, and Airbnb.

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Details of a Business Plan
Creating a Business Plan
Service Business Plan
Sample of a Good Business Plan
LLC Business Plan Template
Purpose of Business Plan Sample: Everything You Need To Know
Business Plan for Existing Company
Do I Need a Business Plan
Management Plan in a Business Plan
Parts of Business Plan and Definition

How to Write a Business Plan: Organization Structure

How to write a business plan: organizational structure, what is the organizational structure for a business plan.

The organization structure section should discuss whether your business will be a sole proprietor, limited liability corporation, or corporation, who will run your business, each person’s responsibility, and how your business will expand if needed. There are numerous benefits to a detailed assessment of the company’s structure. First, examining the structure of the business will help for tax purposes. For example, limited liability and corporations are considered excellent for protecting shareholders concerning liabilities. However, tax-wise, these firms often are double taxed. The second benefit of a detailed assessment of a company’s structure is to understand how each owner will contribute to the company. In other words, if there is more than one owner, what are their responsibilities, and how are these responsibilities to be carried out.

Why is the Organizational Structure important?

There are numerous reasons why the organizational structure is essential for a business plan. In this section, the business owner will lay out how the company will be structured. For example, this section will include job titles and responsibilities, resumes from owners and management, showing expertise in the industry, and supporting accolades for expertise. Through discussing job responsibilities and experiences for management, readers will better understand why this type of business structure, and this management team, will be successful in the proposed business.

A second important reason for the organizational structure is that the section introduces business owners. The owners and management team should not only be introduced in this section, but their experiences in the industry need to be highlighted and thoroughly explained. In doing this, a sound foundation for management competence will be established.

A final reason for its importance is the job responsibility segment. Ownership and management need to have a written document showing specific duties for each owner, if applicable, and specific job responsibilities for each position within the company. By having this document, readers will see how the business will function and better understand the breakup of management responsibilities.

When to write the Organizational Structure?

The organizational structure should be written after the company description. In the company description, readers will be introduced to the problem that the company is going to solve and how they propose to solve this problem. This is usually the product or service offered. The logical next step is to show a business structure that will allow the company to supply that product or service effectively and efficiently. Thus the need for the organizational section follows immediately behind the company description.

How to write the Organizational Structure?

When I write my organizational structure for a business plan, for the most part, I start the first paragraph by reminding the readers of the company name. From this, I then introduce how the company will be held in ownership. For example, will the company be a limited liability corporation? Sole proprietorship? Next, I briefly introduce the management team and owners. Further, I also briefly introduce their experience in the industry.

By following this structure, the first paragraph is an excellent summation of the section. This allows the reader to understand the breadth of the ownership structure without gaining significant details.

Organizational Structure: Ownership

In the ownership section, I usually start writing the section by introducing the CEO/founder/majority owner. In this portion, I usually write the segment, almost like a brief biography. I will discuss the CEO's history in the industry and the reason why they feel that they are best suited to start and run the operation.

Once this is complete, I then follow the same structure with the other management team members and minority stakeholders. When this is done, the reader should walk away with an excellent understanding of the qualifications of the ownership team and how their skills will complement each other.

Need Help Writing an Organizational Structure for a Business Plan?

Call or Text Paul, Doctoral Candidate, MBA.

321-948-9588

Email: [email protected]

Organizational Structure: Responsibilities

In the job responsibility section, I usually structure this portion as a bullet-pointed list. At the top, I put the title such as CEO, project manager, or job title. Following this, I list the responsibilities and expectations for each position. Not only does this help show structure and foresight for the company. But also, this will help management divvy up duties for the business.

Organizational Structure: Resume

The resume section is for senior managers and owners. By including resumes, supporting documentation is available for claims made related to experience. For example, if the CEO claims to have 20 years of experience in the industry, then the resume will show where this experience came from. This adds credibility to previous claims made.

Organizational Structure: Compensation

Compensation is sometimes necessary to include in the organizational structure component. Investors expect management to be compensated and employees as well. However, excessive compensation is often an issue with startups and established businesses. By showing reasonable compensation for each position, not only will a solid understanding of the pay for each position be shown, but restraint for compensation by the management team and ownership may be highlighted as well.

Organizational Structure: Achievements

This final section is almost like a cherry on top of the cake. By this point, the reader should be well-versed in the experience and expertise of ownership and the management team. Adding achievements highlights their expertise in their chosen industry.

Organizational Structure Example

Organizational structure.

Legal Structure

ABC Restaurant will be a limited liability corporation.

Management Summary

John Smith, Sr., MBA., is the founder and CEO of ABC Restaurant. He has started and managed numerous successful small restaurants over the last ten years. Restaurants started, and managed, including a breakfast cafe, food truck, and 24-hour diner. For each business, he was responsible for all aspects of the organization, from marketing to strategic planning.

Job Responsibilities

Create and execute marketing strategies for business growth.
Align business strategies with the vision statement.
Negotiating contracts with vendors.
Ensure legal compliance for the business.
Continually examine the firm’s external environment for new market opportunities.

General Manager:

Control inventory to ensure optimal levels are attained.
Manage day-to-day operations of the restaurant.
Servers and cooks during high volume times.
Interview and hire new employees.
Assist in the onboarding process for new employees.
Set up all workstations in the kitchen
Prepare ingredients to use in cooked and non-cooked foods.
Check food while cooking for appropriate temperatures.
Ensure great presentation by dressing dishes as trained.
Keep a sanitized and clean environment in the kitchen area.
Stock dining area tables with needed items.
Greet customers when they enter.
Present dinner menus and help customers with food/beverages selections.
Take and serve orders quickly and accurately.

Author: Paul Borosky, MBA., Doctoral Candidate, Published Author

Updated: 3/4/2022

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How to Describe the Management Team in Your Business Plan

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Long-term business success depends, above all, on the quality of the team providing the leadership, direction, and vision. In fact, in some cases, investors have funded start-up companies primarily on the basis of the people who will run them.

Assemble background information on yourself and each of your senior team members.

In your business plan, condense each key person’s profile into a description of no longer than one-half page, following these tips:

When describing team members, include everything that’s relevant to the potential success of your business. But keep each biographical description brief, to the point, and less than a half page in length.

If yours is a single-person operation, you don’t have to spend too much time describing yourself in your plan, but do have a resume highlighting your education, experience, and accomplishments ready for when the information is requested by a banker, supplier, or prospective investor.

If you’re running a larger business, feature biographies of up to five top managers in your business plan, including all the big Cs: CEO (Chief Executive Officer), COO (Chief Operating Officer), CFO (Chief Financial Officer), and CTO or CIO (Chief Technology Officer or Chief Information Officer).

Depending on the size of your company, you may also want to include brief descriptions of the members of your Board of Directors, Board of Advisors, or consultants who play a major role in making your business a success.

You should also conduct a web search for the name of each person featured in your business plan to be sure the results lead to positive, credible, current information. Chances are good that prospective customers, investors, and suppliers will look for your company and the more visible people online as part of their research efforts, and you want links to lead to pages that affirm their interest.

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Table Of Contents

What Is A Management Team?

A management team typically refers to individuals who lead and oversee an organization’s operations. It is responsible for setting the organization's direction, making critical decisions, and ensuring it achieves its goals.

Its objectives in a business are to ensure that the organization successfully achieves its goals and objectives while maintaining efficient operations and a robust organizational culture.

Management team explained.

Management Team vs. Board of Directors

Frequently Asked Questions (FAQs)

Management Team vs Board Of Directors

The management team and board of directors play different roles in a company. The management team focuses on operations and tactical decision-making, while the board of directors provides strategic direction and oversight. However, there may be some overlap in responsibilities, and these two groups work together to ensure the company's success.

Some key differences between a management team and a board of directors:

Focus : The management team focuses on the business's day-to-day operations, while the board of directors has a broader focus on the company's overall strategic direction.
Authority : The management team is responsible for executing the strategies and plans developed by the board of directors, while the board of directors has ultimate control over the company's major decisions, such as mergers, acquisitions, and significant capital expenditures .
Structure : The management team typically comprises the CEO, COO, CFO, and other senior executives, while the board of directors includes a group of independent directors elected by shareholders.
Responsibilities : The management team implements policies and procedures, manages day-to-day operations, and makes tactical decisions. In contrast, the board of directors is responsible for setting strategic direction, overseeing management, and representing the interests of shareholders.
Accountability : The management team is accountable to the board of directors and must regularly report on the company's performance. In contrast, the board of directors is responsible to shareholders and must ensure that the company is managed in its best interests.
Term : The management team usually comprises full-time employees who work for the company. The board of directors includes independent directors who typically serve for a fixed period of several years.

A good fight requires a commitment to healthy debate, active listening, open-mindedness, and respect for each other's ideas. Following these principles can resolve conflicts and make better organizational decisions.

It is critical in helping organizations respond to and manage crises effectively. By having a well-trained and prepared team in place, organizations can minimize the impact of a problem and protect their reputation and stakeholders.

It is a critical document for any business. It provides a clear framework for how the management team will work together to achieve the organization's objectives and ensures everyone is aligned and working towards a common goal.

This article has been a guide to what is a Management Team. Here, we explain its examples, structure, functions, and comparison with the board of directors. You may also find some useful articles here -

Management Accounting
Management Reporting
Lead Management

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7 Organizational Structure Types (With Examples)

Updated: May 29, 2024, 5:39pm

7 Organizational Structure Types (With Examples)

What is an organizational structure, 4 common types of organizational structures, 3 alternative organizational structures, how to choose the best organizational structure, frequently asked questions (faqs).

Every company needs an organizational structure—whether they realize it or not. The organizational structure is how the company delegates roles, responsibilities, job functions, accountability and decision-making authority. The organizational structure often shows the “chain of command” and how information moves within the company. Having an organizational structure that aligns with your company’s goals and objectives is crucial. This article describes the various types of organizational structures, the benefits of creating one for your business and specific elements that should be included.

Employees want to understand their job responsibilities, whom they report to, what decisions they can and should make and how they interact with other people and teams within the company. An organizational structure creates this framework. Organizational structures can be centralized or decentralized, hierarchical or circular, flat or vertical.

Centralized vs. Decentralized

Many companies use the traditional model of a centralized organizational structure. With centralized leadership, there is a transparent chain of command and each role has well-defined responsibilities.

Conversely, with a decentralized organizational structure, teams have more autonomy to make decisions and there may be cross-collaboration between groups. Decentralized leadership can help companies remain agile and adapt to changing needs.

Hierarchical vs. Circular

A hierarchical organization structure is the pyramid-shaped organization chart many people are used to seeing. There is one role at the top of the pyramid and the chain of command moves down, with each level decreasing in responsibilities and authority.

On the other hand, a circular organization chart looks like concentric circles with company leadership in the center circle. Instead of information flowing down to the next “level,” information flows out to the next ring of management.

Vertical vs. Flat

A vertical organizational chart has a clear chain of command with a small group of leaders at the top—or in the center, in the case of a circular structure—and each subsequent tier has less authority and responsibility. As discussed below, functional, product-based, market-based and geographical organizational structures are vertical structures.

With a flat organization structure, a person may report to more than one person and there may be cross-department responsibilities and decision-making authority. The matrix organizational structure described below is an example of a flat structure.

Benefits of Creating an Organizational Structure

There are many benefits to creating an organizational structure that aligns with the company’s operations, goals and objectives. Clearly disseminating this information to employees:

Provides accountability
Clarifies expectations
Documents criteria for promotion
Designates decision-making authority
Creates efficiency
Fosters collaboration

Essential Elements of Clear Organizational Structure

Regardless of the special type of organizational structure you choose, it should have the following components:

Chain of command
Roles and responsibilities
Scope of control
Decision-making authority
Departments or teams within the organization

Functional/Role-Based Structure

A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined roles, job functions, chains of command and decision-making authority. A functional structure facilitates specialization, scalability and accountability. It also establishes clear expectations and has a well-defined chain of command. However, this structure runs the risk of being too confining and it can impede employee growth. It also has the potential for a lack of cross-department communication and collaboration.

Product- or Market-Based Structure

Along with the functional structure, the product- or market-based structure is hierarchical, vertical and centralized. However, instead of being structured around typical roles and job functions, it is structured around the company’s products or markets. This kind of structure can benefit companies that have several product lines or markets, but it can be challenging to scale. It can also foster inefficiency if product or market teams have similar functions, and without good communication across teams, companies run the risk of incompatibility among various product/market teams.

Geographical Structure

The geographical structure is a good option for companies with a broad geographic footprint in an industry where it is essential to be close to their customers and suppliers. The geographical structure enables the company to create bespoke organizational structures that align with the location’s culture, language and professional systems. From a broad perspective, it appears very similar to the product-based structure above.

Process-Based Structure

Similar to the functional structure, the process-based structure is structured in a way that follows a product’s or service’s life cycle. For instance, the structure can be broken down into R&D, product creation, order fulfillment, billing and customer services. This structure can foster efficiency, teamwork and specialization, but it can also create barriers between the teams if communication isn’t prioritized.

Matrix Structure

With a matrix organizational structure, there are multiple reporting obligations. For instance, a marketing specialist may have reporting obligations within the marketing and product teams. A matrix structure offers flexibility, enables shared resources and fosters collaboration within the company. However, the organizational structure can be complex, so it can cause confusion about accountability and communication, especially among new employees.

Circular Structure

Similar to the functional and product-based structure, a circular structure is also centralized and hierarchical, but instead of responsibility and decision-making authority flowing down vertically, responsibility and decision-making authority flow out from the center. A circular structure can promote communication and collaboration but can also be confusing, especially for new employees, because there is no clear chain of command.

Organic Structure

Unlike vertical structures, this structure facilitates communication between and among all staff. It is the most complex, but it can also be the most productive. Although it can be challenging to know who has ultimate decision-making authority, it can also foster a positive company culture because employees don’t feel like they have “superiors.” This structure can also be more cost-efficient because it reduces the need for middle managers.

There is no one “right” organizational structure. When deciding which structure will work best for your company, consider the following:

Current roles and teams within the company. How are job functions currently organized? Does it foster communication and productivity? Does it impede or encourage employee growth?
Your strategic plan. What are your company’s goals for the short-term and long-term?
Feedback from employees, leadership and other stakeholders. What do those within your company say about how the company is structured? What feedback do you have from other stakeholders, such as customers and suppliers?
Alignment. What structure will best support your strategic plans and address any feedback received?

What is the most common organizational structure?

A functional organizational structure is one of the most common organizational structures. If you are still determining what kind of structure to use, this organizational structure can be an excellent place to start.

What is the difference between an organizational structure and an organizational chart?

An organizational chart is a graphic that depicts the organizational structure. The chart may include job titles or it can be personalized to include names and photos.

What are the four types of organizational structures?

A functional—or role-based—structure is one of the most common organizational structures. The second type—the product- or market-based structure—is also hierarchical, vertical and centralized. Similar to these is the third structure—the process-based structure—which is structured in a way that follows a product’s or service’s life cycle. Lastly, the geographical structure is suitable for businesses with a broad geographic footprint.

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Organizational Planning Guide: Types of Plans, Steps, and Examples

Organizational planning is like charting your company’s path on a map. You need to know what direction you’re headed to stay competitive.

But what exactly is organizational planning and how do you do it effectively? This guide will cover:

The Different Components or Types of Organizational Plans?

The 5 Process Steps of Organizational Planning

Organizational planning examples.

Organizational Planning Tools

What is Organizational Planning?

Organizational planning is the process of defining a company’s reason for existing, setting goals aimed at realizing full potential, and creating increasingly discrete tasks to meet those goals.

Each phase of planning is a subset of the prior, with strategic planning being the foremost

There are four phases of a proper organizational plan: strategic, tactical, operational, and contingency. Each phase of planning is a subset of the prior, with strategic planning being the foremost.

Types of Organizational Planning

A strategic plan is the company’s big picture. It defines the company’s goals for a set period of time, whether that’s one year or ten, and ensures that those goals align with the company’s mission, vision, and values. Strategic planning usually involves top managers, although some smaller companies choose to bring all of their employees along when defining their mission, vision, and values.

The tactical strategy describes how a company will implement its strategic plan. A tactical plan is composed of several short-term goals, typically carried out within one year, that support the strategic plan. Generally, it’s the responsibility of middle managers to set and oversee tactical strategies, like planning and executing a marketing campaign.

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Operational

Operational plans encompass what needs to happen continually, on a day-to-day basis, in order to execute tactical plans. Operational plans could include work schedules, policies, rules, or regulations that set standards for employees, as well as specific task assignments that relate to goals within the tactical strategy, such as a protocol for documenting and addressing work absences.

Contingency

Contingency plans wait in the wings in case of a crisis or unforeseen event. Contingency plans cover a range of possible scenarios and appropriate responses for issues varying from personnel planning to advanced preparation for outside occurrences that could negatively impact the business. Companies may have contingency plans for things like how to respond to a natural disaster, malfunctioning software, or the sudden departure of a C-level executive.

The organizational planning process includes five phases that, ideally, form a cycle.

Strategic, tactical, operational, and contingency planning fall within these five stages.

1. Develop the strategic plan

Steps in this initial stage include:

Review your mission, vision, and values

Gather data about your company, like performance-indicating metrics from your sales department

Perform a SWOT analysis; take stock of your company’s strengths, weaknesses, opportunities, and threats

Set big picture goals that take your mission, vision, values, data, and SWOT analysis into account

2. Translate the strategic plan into tactical steps

At this point, it’s time to create tactical plans. Bring in middle managers to help do the following:

Define short-term goals—quarterly goals are common—that support the strategic plan for each department, such as setting a quota for the sales team so the company can meet its strategic revenue goal

Develop processes for reviewing goal achievement to make sure strategic and tactical goals are being met, like running a CRM report every quarter and submitting it to the Chief Revenue Officer to check that the sales department is hitting its quota

Develop contingency plans, like what to do in case the sales team’s CRM malfunctions or there’s a data breach

3. Plan daily operations

Operational plans, or the processes that determine how individual employees spend their day, are largely the responsibility of middle managers and the employees that report to them. For example, the process that a sales rep follows to find, nurture, and convert a lead into a customer is an operational plan. Work schedules, customer service workflows, or GDPR policies that protect prospective customers’ information all aid a sales department in reaching its tactical goal—in this case, a sales quota—so they fall under the umbrella of operational plans.

This stage should include setting goals and targets that individual employees should hit during a set period.

Managers may choose to set some plans, such as work schedules, themselves. On the other hand, individual tasks that make up a sales plan may require the input of the entire team. This stage should also include setting goals and targets that individual employees should hit during a set period.

4. Execute the plans

It’s time to put plans into action. Theoretically, activities carried out on a day-to-day basis (defined by the operational plan) should help reach tactical goals, which in turn supports the overall strategic plan.

5. Monitor progress and adjust plans

No plan is complete without periods of reflection and adjustment. At the end of each quarter or the short-term goal period, middle managers should review whether or not they hit the benchmarks established in step two, then submit data-backed reports to C-level executives. For example, this is when the manager of the sales department would run a report analyzing whether or not a new process for managing the sales pipeline helped the team reach its quota. A marketing team, on the other hand, might analyze whether or not their efforts to optimize advertising and landing pages succeeded in generating a certain number of leads for the sales department.

Depending on the outcome of those reviews, your org may wish to adjust parts of its strategic, tactical, or operational plans. For example, if the sales team didn’t meet their quota their manager may decide to make changes to their sales pipeline operational plan.

These templates and examples can help you start thinking about how to format your organizational plan.

This is a single page two-year strategic plan for a fictional corporation. Notice that the goals listed in the “Strategic Objectives and Organization Goals” section follow the SMART goals model: They’re specific, measurable, actionable, relevant, and time-based.

Workforce Planning

Companies need to use workforce planning to analyze, forecast, and plan for the future of their personnel. Workforce planning helps identify skill gaps, inefficiencies, opportunities for employee growth, and to prepare for future staffing needs.

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This is a two-year action plan for an administration, which could also be described as a tactical plan. Organization-wide goals—aka strategic goals—that are relevant to this department are listed in the top section, while the more tactical goals for the manager of this department are listed below.

Check out this strategic plan template . You’ll notice that tasks for an individual employee fall under operational planning. Note the space within each item for the manager to leave feedback for the employee.

Organizational Planning is Vital for a Successful Business

While organizational planning is a long and complex process, it’s integral to the success of your company. Luckily, the process becomes more automatic and intuitive with regular planning and review meetings.

Use Pingboard’s org chart software to help you plan and communicate your strategy. With Pingboard users can build and share multiple versions of their org chart to help with succession plans, organization redesigns, merger and acquisitions plans. Pingboard also helps with hiring plans by allowing you to communicate open roles in your live org chart so employees understand where their company is growing and what roles they can apply for. Pingboard’s employee directory helps find successors for specific roles by allowing managers to search through their workforce for the skills and experience needed to fill a position.

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Risk management refers to identifying, assessing, and prioritizing risks to minimize, monitor, and control their impact on an organization. By adopting various strategies, businesses can safeguard their assets, improve decision-making, and prepare for unforeseen events. Proactively managing risk allows companies to navigate potential challenges and seize opportunities for growth effectively.

Risk management is crucial for small businesses due to limited resources and the significant effect potential losses could have on their operations. A structured approach to managing risks can provide peace of mind and stability, ensuring that a business can thrive even in uncertain environments. Through effective risk management, businesses can protect their reputations and ensure sustained performance.

Proactive risk management also brings several benefits, such as reducing financial losses, enhancing reputation, and ensuring legal compliance. While some risks are unavoidable, having a comprehensive plan can minimize their impact, allowing businesses to focus on achieving their goals. Engaging actively in risk management helps create a resilient organization that can adapt and grow in the face of challenges.

Identifying Common Risks Faced By Small Businesses

Financial Risks Small businesses often encounter cash flow issues that can jeopardize daily operations. Credit risk is also a concern, as failing to manage credit can lead to serious financial strain.

Operational Risks Supply chain disruptions can halt production and affect revenues. Equipment failures may also impede business continuity, making operational efficiency a significant focus.

Legal and Compliance Risks Navigating regulatory changes can be daunting, and failure to comply may result in costly lawsuits. Businesses must stay updated with evolving regulations to mitigate these risks.

Cybersecurity Risks Data breaches and hacking pose serious threats to small businesses. Protecting sensitive information with robust cybersecurity measures is essential to prevent unauthorized access.

Physical Risks Natural disasters, such as floods or earthquakes, can cause significant damage. Workplace injuries are another concern, requiring effective injury risk management strategies to protect employees.

Implementing comprehensive risk management strategies can help mitigate these challenges and protect the business's operational and financial health. To stay prepared for these common risks, businesses can benefit from ongoing education and monitoring.

Developing A Risk Management Plan

Creating a risk management plan involves several structured steps to safeguard an organization against potential hazards. It is essential to involve key stakeholders during this process to ensure a comprehensive approach.

Risk Identification : Begin by assessing potential risks that could impact operations. Interviews, workshops, and historical data analysis can help identify these risks.

Risk Analysis : Once identified, evaluate the likelihood and impact of each risk. This can be done through qualitative or quantitative analysis, aiming to understand their potential effects on the business.

Risk Prioritization : Rank the identified risks based on their severity and potential impact. This prioritization helps in focusing resources on the most critical risks.

Risk Mitigation : Develop strategies to minimize these risks. This could include risk avoidance , risk reduction , or risk transfer strategies to manage potential threats effectively.

Business Continuity Planning : Integrate business continuity strategies into the risk management plan. This ensures that the organization can maintain critical functions during and after a risk event.

Risk Monitoring : Continuously monitor and review risks and the effectiveness of mitigation strategies. Regular audits and updates are crucial to adapt to any changes in the risk environment.

By following these steps, organizations can establish a robust risk management plan that accounts for both immediate and long-term challenges.

Tools And Resources For Effective Risk Management

Effective risk management requires a combination of tools and resources. Risk assessment tools such as SWOT analysis and risk matrices are foundational. These tools help in identifying and evaluating potential risks. They enable organizations to prioritize risks and develop mitigation strategies.

Risk management software platforms provide an integrated approach to track and manage risks. Many software solutions offer customizable dashboards, real-time reporting, and data analytics. These features simplify identifying trends and action points to mitigate risks effectively.

Employee training programs are crucial to risk management. Regular training and education ensure that employees are aware of potential risks and how to handle them. Interactive and engaging training modules increase awareness and foster a culture of safety and preparedness.

Professional risk consultation can be invaluable. Seeking expert advice from professionals helps address specific challenges. Consultation can guide strategic planning and offer insights tailored to industry needs. For managing personal injury risks, consulting with experts such as those at professionals like Injured.ca can be especially beneficial.

Lastly, adhering to industry-specific guidelines and best practices helps maintain comprehensive risk management. They align strategies with current standards, minimizing liability and enhancing compliance. Regular reviews ensure continued alignment with industry trends and regulations.

Risk management is crucial for small businesses. These enterprises often face unique challenges and limited resources, making them vulnerable to uncertainties. Effective risk management helps safeguard assets and ensures long-term sustainability.

Small businesses must implement strategies that identify potential risks early. They can create robust plans that minimize impacts by evaluating internal and external factors.

Continuous improvement and adaptation are essential. Threat landscapes evolve, necessitating regular updates to risk management strategies. Adapting to new risks ensures resilience.

Key Aspects:

Proactive identification
Strategic planning
Continuous adaptation

Investing in risk management tools and training can greatly enhance effectiveness. Technology plays a critical role in monitoring and responding to threats.

Benefits of Effective Risk Management:

Protects financial stability
Enhances decision-making
Fosters stakeholder trust

Small businesses should embed risk management into their culture. Collaborative efforts across teams ensure comprehensive coverage of potential threats.

Staying informed about industry trends aids in refining risk management approaches. This knowledge enables businesses to anticipate changes and respond efficiently.

By committing to continuous learning, businesses can navigate uncertainties successfully. An agile approach keeps them prepared, safeguarding their future.

Funded, in part, through a Cooperative Agreement with the U.S. Small Business Administration. All opinions, and/or recommendations expressed herein are those of the author(s) and do not necessarily reflect the views of the SBA.

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Accounting client portal, financial client portal, building an effective risk management structure for long-term stability.

In business, expecting the unexpected isn't just a cliché—it's a survival strategy. While you can’t predict every curveball, you can certainly prepare for them.

In today's world, where change is the only constant, having a solid risk management approach helps your business not just survive, but thrive, no matter what comes your way. From safeguarding your financial stability to ensuring operational efficiency, effective risk management can keep your business going, no matter what challenges arise.

Let's dive into why establishing a risk management plan, process, and team is crucial and how it can transform your business from vulnerable to unshakeable.

Why Establish a Risk Management Plan?

1. keeping your business goals on track.

Think of risk management as your business's GPS—it helps you navigate around potential obstacles that could derail your strategic objectives. By identifying risks early, you can adjust your course to stay on track and continue progressing toward your goals.

2. Protecting Your Bottom Line

Financial risks can impact your company's stability and growth. Effective risk management will identify threats like market fluctuations and unexpected costs early, allowing you to develop strategies to mitigate them and protect your bottom line.

3. Creating a Safer Workplace

Nobody wants an accident at work. Risk managers identify potential hazards and implement safety measures, fostering a safer workplace that boosts employee morale and productivity. Additionally, the Occupational Safety and Health Act can penalize companies up to $156,259 per violation if they don’t manage workplace risks.

4. Making Smarter Decisions

When you understand potential risks and opportunities, you can make more informed and confident decisions. Risk management provides the insights needed to anticipate challenges, seize opportunities, and navigate complex business environments effectively.

5. Enhancing Operational Efficiency

Proactive risk management helps ensure smooth daily operations by identifying and mitigating potential disruptions, such as equipment failures or supply chain issues, before they become major problems.

6. Staying Compliant

In a constantly changing regulatory landscape, staying compliant is crucial. A robust risk management plan helps you stay ahead of new regulations, avoiding fines and protecting your reputation.

Establishing an Effective Risk Management Structure

To build a solid risk management foundation:

1. Start with a Clear Plan and Goals

Define your organization's risk tolerance and set clear objectives for your risk management efforts.

2. Develop a Comprehensive Process

Create a systematic approach to identify, assess, mitigate, and monitor risks across your organization. Understand that this must be reviewed and updated at least quarterly.

3. Build a Skilled Team

Assemble a group of professionals with the expertise to manage various types of risks effectively.

The Risk Management Team: Roles and Responsibilities

A risk management team is a group of skilled individuals dedicated to identifying, analyzing, and responding to various risks that can potentially hinder organizational objectives. Their key responsibilities include:

1. Risk Identification

Identifying potential internal and external risks across various categories, including human factors and technological, physical, economic, natural, and political risks.

2. Risk Assessment

Evaluating the likelihood and potential impact of identified risks to prioritize and focus on those that could cause the most significant damage.

3. Risk Mitigation and Monitoring

Develop strategies to address identified risks, continuously monitor and review these risks, and make necessary adjustments to mitigation strategies.

4. Training and Communication

Educating employees about risk management practices and ensuring timely, accurate communication of risk-related information to all stakeholders.

5. Compliance and Reporting

Ensuring adherence to laws, regulations, and industry standards while providing management with regular reports on risk status and the effectiveness of mitigation strategies.

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Establishing a risk management structure is not just a business necessity; it's a strategic imperative. By effectively managing risks, organizations can safeguard their objectives, ensure financial stability, create a safe working environment, guide strategic decision-making, enhance operational efficiency, and maintain regulatory compliance.

At Lutz, we understand the complexities of risk management. Our risk assessment services can help you develop and implement a tailored structure that aligns with your business’s needs and goals. To learn more, please contact us .

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Understanding Change Management Risks

With any change, there are risks. Change Management risks refer to potential negative outcomes that could occur during the process of implementing a change. These include things like operational disruptions, financial losses, or security vulnerabilities. When managing a change, it’s crucial not just to focus on the change itself but also to plan for and mitigate these risks.

Effective Change Management requires a proactive approach . That means anticipating potential problems and having strategies in place to minimize or avoid them. Without this, even a well-intended change can lead to unexpected issues that jeopardize the entire initiative.

Types of Change Management risks

Change introduces uncertainty, and with that comes the possibility of specific risks that can disrupt the process.

What are the negative effects Change Management can have? Here are some of the most common Change Management risks organizations face:

1. Operational disruption

Changes to systems, processes, or structures can disrupt day-to-day operations. For example, implementing a new software system without proper testing or training could lead to downtime, errors, or delays. Critical functions might fail or slow down, impacting productivity and customer service.

2. Data security risks

When systems are changed or updated, security vulnerabilities can emerge. For example, new software might have weak points that weren’t present in the previous system, making it easier for hackers to exploit. If sensitive data is exposed, the organization could face severe consequences, including legal action or loss of customer trust.

3. Financial risks

Budget overruns are common in poorly managed change initiatives. Costs can spiral if the scope of the change expands unexpectedly or if there are delays in implementation.

This could mean the project ends up costing far more than anticipated, impacting the organization’s finances. Additionally, if the change disrupts revenue-generating activities, there could be a direct financial hit.

4. Regulatory compliance risks

In some industries, changes need to meet strict compliance standards, with both legal and regulatory requirements. Failing to do so could result in fines, penalties, or legal challenges. For instance, if an organization implements a new system without ensuring it complies with data privacy laws, it could be exposed to legal risks.

Everything You Need to Know About Compliance Management

5. reputation risks.

A poorly executed change can harm an organization's reputation. If customers or the public are affected by service disruptions or notice a drop in quality, they might lose trust in the company. This can lead to long-term damage, such as losing customers or facing negative publicity, which is difficult to recover from.

The relationship between Change Management and Risk Management

Before discussing Change Management risks, it's important not to confuse Change Management with Risk Management . These are distinct practices defined by frameworks such as ITIL . Risk Management focuses on identifying, assessing, and mitigating risks across various areas of an organization, while Change Management is centered on effectively managing the implementation of specific changes.

However, there is an intersection between these two practices when handling the risks that arise during change initiatives. While risk management can include risks related to change, its scope is much broader and applies to different scenarios across an organization, such as financial risks, security breaches, or compliance issues.

Change Management, particularly in the planning and initial implementation stages, follows many of the same principles found in

Risk Management frameworks to mitigate risks. For example, both practices require identifying potential risks early, evaluating their likelihood and impact, and developing strategies to minimize or avoid them during a change initiative.

10 Steps to Create a Risk Management Plan

How does change management help businesses.

Change Management helps businesses by ensuring that transitions—whether they're technological upgrades, process improvements, or organizational shifts—are implemented smoothly and with minimal disruption.

There are many benefits of Change Management . It allows businesses to stay agile and adapt to new opportunities or challenges while keeping operations efficient. It fosters better communication, reduces resistance from employees, and ensures that changes are understood and embraced by the team. This leads to improved productivity, more streamlined workflows, and ultimately, better outcomes for the business.

Benefits of Change Management for Individuals, Teams and Organizations

What are the four steps to conducting a change management risk assessment.

Conducting a Change Management risk assessment involves four key steps that help identify, evaluate, and mitigate risks before they can affect the change process.

Identify potential risks : The first step is to gather a comprehensive list of risks that could arise during the change process. This includes everything from operational disruptions to security concerns. Involving key stakeholders and teams during this phase helps ensure that all possible risks are considered.
Evaluate the likelihood and impact : Once risks are identified, assess their likelihood of occurring and the potential impact on the organization if they do. A simple matrix can help rank these risks in terms of priority.
Prioritize the risks : After assessing risks, prioritize them based on the severity of their impact and likelihood. High-priority risks need more immediate attention, while lower-priority risks can be monitored and addressed if they become more likely.
Develop mitigation strategies : For each high-priority risk, create specific action plans that outline how the risk will be mitigated or managed. This could involve creating backup plans, securing additional resources, or implementing safety measures to prevent the risks from materializing.

Technology can play a crucial role in Change Management risks. Tools that gather data from across the organization can offer real-time predictions about the risk level of a given change. As our guest, Greg Sanker, shared in our podcast:

"Organizations are working on actively mining any related data so that they can make real-time predictions on what the risk level of any given change is so that you can act dynamically. (...) Let's call it artificial intelligence, but let's not get into that. Let's just say we're being really smart because humans are those subject matter experts."

Director of IT Support at Taylor Morrison
of

Greg Sanker on How to Improve Change Management

How do you mitigate risk in change management.

To mitigate risks in Change Management, start by having a well-structured plan that anticipates potential issues before they arise. Strong communication throughout the change process ensures that employees and stakeholders are informed, reducing uncertainty and resistance.

Involving key stakeholders early on also helps in identifying hidden risks. Implementing phased rollouts, rather than large-scale changes, allows for controlled testing and adjustments. Regular monitoring of the change's impact, paired with flexibility to adapt when needed, is essential to mitigate risks as they evolve during the implementation process.

Change Management requires practical strategies to prevent common issues from derailing the process. Below are specific actions that can help manage risks effectively:

1. Resistance to change

Resistance is one of the most common risks in any change initiative. To reduce resistance, involve employees early in the decision-making process. This could be as simple as hosting feedback sessions or workshops where employees can voice concerns and contribute ideas. By making employees feel heard, they’re more likely to buy into the change.

Example : When a company implements a new CRM system, inviting sales and customer service teams to test it during the pilot phase and provide feedback can help smooth the transition. Providing training and ongoing support to these teams will further ease the shift.

2. Communication gaps

A lack of clear communication can lead to confusion, missed deadlines, or misunderstandings. To avoid this, establish a structured communication plan that details how information will flow across departments. Make sure there are clear timelines, regular updates, and dedicated communication channels like internal newsletters, meetings, or even a project management tool.

Example : During a company-wide restructuring, an organization can set up weekly email updates to all staff, hold town hall meetings to answer questions, and use Slack or Microsoft Teams for day-to-day communication. This ensures that everyone knows what's happening and when.

3. Resource limitations

Changes often stall due to insufficient resources like funding, time, or personnel. To mitigate this, ensure that you secure the necessary budget, staffing, and technology before starting the change process. This includes conducting a thorough resource assessment to avoid surprises halfway through the project.

Example : If a company is switching to a new ERP system, they should allocate enough budget for both the software and necessary training for employees. Additionally, hiring temporary IT support during the transition phase can help handle any technical issues, avoiding costly delays.

4. Unclear objectives

Changes can fail if objectives aren’t clearly defined. Set measurable, achievable goals from the start and communicate them to everyone involved. This helps ensure that all teams understand the purpose of the change and what they need to achieve.

Example : A business looking to reduce operational costs by 10% through automation needs to set specific KPIs (Key Performance Indicators) like reducing manual data entry by 50% or cutting down time spent on administrative tasks by a certain number of hours. These metrics should be shared with all teams to keep everyone focused on the same targets.

5. Poor planning

Failure to plan properly can lead to disruptions during the change process. Developing a comprehensive change roadmap that accounts for contingencies is critical. This roadmap should outline each phase of the change, key milestones, potential risks, and backup plans in case things go off course.

Example : If an organization is migrating data to a new cloud provider, the roadmap should include a step-by-step plan for the migration, test phases, downtime estimates, and what actions will be taken if data loss or security breaches occur. By preparing for worst-case scenarios, the organization can respond quickly to minimize disruptions.

Organizational Change Management: What is it and How to do it

Effectively managing change requires more than just planning the transition itself. It involves identifying and mitigating the specific risks that could disrupt the process or lead to unintended negative consequences.

Operational disruptions, financial overruns, security vulnerabilities, and compliance issues are all potential risks that must be addressed proactively. At the same time, it’s essential to understand that Change Management risks are just one part of a broader risk landscape. Risk management across the organization should include these and other risks to safeguard the company's operations, finances, and overall resilience in the face of any challenge.

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How to Write a Business Plan Step by Step
How to Write Your Business Plan Owner Bio & Team Structure
Engage the Entire Organization in Strategic Planning in Business and at
How to Write a Business Plan in 9 Steps (+ Template and Examples)
How to Write Management Team Section in Business Plan?
Awesome Team Management Plan Template

COMMENTS

Writing the Organization and Management Section of Your Business Plan
This document can clarify these roles for yourself, as well as investors and employees. The organization and management section should explain the chain of command, roles, and responsibilities. It should also explain a bit about what makes each person particularly well-suited to take charge of their area of the business.
How to Write the Management Team Section of a Business Plan
Your management team plan has 3 goals: To prove to you that you have the right team to execute on the opportunity you have defined, and if not, to identify who you must hire to round out your current team. To convince lenders and investors (e.g., angel investors, venture capitalists) to fund your company (if needed)
How to Write Management Team Section in a Business Plan
1. The Management Team. An organization's entire management team can be divided into parts — the internal team and the external team. Let us see those in detail: The Internal Management Team. A business team consists of several departments. The most common departments are—marketing, sales, IT, customer service, operations, finance, and HR.
Business Plan Organization and Management: How to Write Guide
A thorough business plan organization and management section introduces its readers to the team responsible for day-to-day operations. It helps them understand your company's structure, management team, hiring plans, or strategic adviser needs. It provides critical information for those looking for evidence that your staff has the necessary ...
How to Write the Management Team Section to Your Business Plan
This is part 2 / 9 of Write Your Business Plan: Section 3: Selling Your Product and Team series. One crucial aspect of any business plan is the management team slide, which outlines the key ...
How To Write a Management Team Business Plan (With an Example)
Compile the copies of their resumes into the appendices of your proposal. 2. Organize your management team into categories. The second step is to illustrate the chain of command in your organization. List the profiles beginning with the owners of the business and descending to the supervisors of every department.
How To Write the Management Section of a Business Plan
The management section of a business plan helps show how your management team and company are structured. The first section shows the ownership structure, which might be a sole proprietorship, partnership, or corporation. The internal management section shows the department heads, including sales, marketing, administration, and production.
How to Write a Management Team Business Plan? (With Example)
Management in a business plan refers to the section that outlines the organizational structure, key team members, and their responsibilities. It showcases the leadership team that will execute the ...
How to present the management team in your business plan?
As a general rule of thumb, 2 to 3 paragraphs per individual can be considered a good starting point. This recommendation may need to be modified depending on the size of your management team and the specific characteristics of your industry: If your business has less than five people: each member of the management team is crucial.
How to Write the Management Section of a Business Plan
Outlining the structure of the management team, detailing the business's history, describing the company's strategy, and explaining the business's organizational structure are all necessary steps when writing the management section of a business plan. Finally, remember to edit and review your work to ensure accuracy and clarity.
How to Write a Great Business Plan: Management Team
For example, if you manufacture a product or provide a service and will hire a key skilled employee, describe that employee's credentials. Otherwise, include staffing plans in the Operations ...
First Steps: Writing the Management Section of Your Business Plan
In a longer plan, when you give your management team's background and describe their titles, go on and tell readers exactly what each member of the management team will be expected to do in the ...
How to Write Organizational Structure in Business Plan ...
Consider factors such as the size of your workforce, the nature of your industry, and your long-term objectives. This assessment will serve as the foundation for designing a structure that aligns ...
Business Plan Section 3: Organization and Management
This section of your business plan, Organization and Management, is where you'll explain exactly how you're set up to make your ideas happen, plus you'll introduce the players on your team. As always, remember your audience. If this is a plan for your internal use, you can be a little more general than if you'll be presenting it to a ...
How to Write a Management Summary in a Business Plan
Photo: Hero Images / Getty Images. The management summary section of your business plan describes how your business is structured, introduces who is involved, outlines external resources and explains how the business is managed. This section backs up all of the data you've included elsewhere in the business plan by demonstrating the expertise ...
Creating Your Business Plan: Organization & Management
This section of your Business Plan should include the following: your company's organizational structure, details about the ownership of your company, profiles of your management team, and the qualifications of your board of directors. Individuals reading your business plan will want to see answers to important questions including who does ...
Business Plan Management Structure: What You Need to Know
The management team is responsible for identifying and analyzing the objectives and goals of the company. After completing these tasks, experienced management professionals can implement and enforce strategies that will lead to success. In your business plan, this team should include the managers, owners, and board of directors (if applicable ...
How to Write a Business Plan: Organization Structure
Organizational Structure: Ownership. In the ownership section, I usually start writing the section by introducing the CEO/founder/majority owner. In this portion, I usually write the segment, almost like a brief biography. I will discuss the CEO's history in the industry and the reason why they feel that they are best suited to start and run ...
How to Describe the Management Team in Your Business Plan
If you're running a larger business, feature biographies of up to five top managers in your business plan, including all the big Cs: CEO (Chief Executive Officer), COO (Chief Operating Officer), CFO (Chief Financial Officer), and CTO or CIO (Chief Technology Officer or Chief Information Officer). Depending on the size of your company, you may ...
5 Examples of a Management Plan for a Business Plan
102 Examples of Business Strengths. A list of business strengths for brainstorming activities such as swot analysis. 6 Examples of Stretch Goals. The definition of stretch goal with examples. 45 Examples of Employee Expectations. The definition of employee expectations with examples.
Management Team
The structure of a business's management team depends on the organization's size and the team members' specific roles and responsibilities. However, most couples are structured hierarchically, with senior executives at the top and lower-level managers and supervisors reporting to them. ... The functions of a management team in a business plan ...
7 Organizational Structure Types (With Examples)
A functional—or role-based—structure is one of the most common organizational structures. This structure has centralized leadership and the vertical, hierarchical structure has clearly defined ...
Organizational Planning Guide: Types of Plans, Steps, and Examples
The organizational planning process includes five phases that, ideally, form a cycle. Strategic, tactical, operational, and contingency planning fall within these five stages. 1. Develop the strategic plan. Steps in this initial stage include: Review your mission, vision, and values.
Risk Management Strategies: Maximizing Business Resilience
Risk management refers to identifying, assessing, and prioritizing risks to minimize, monitor, and control their impact on an organization. By adopting various strategies, businesses can safeguard their assets, improve decision-making, and prepare for unforeseen events. Proactively managing risk allows companies to navigate potential challenges and seize opportunities for growth effectively.
Building an Effective Risk Management Structure for Long-Term Stability
A robust risk management plan helps you stay ahead of new regulations, avoiding fines and protecting your reputation. Establishing an Effective Risk Management Structure . To build a solid risk management foundation: 1. Start with a Clear Plan and Goals. Define your organization's risk tolerance and set clear objectives for your risk management ...
Understanding Change Management Risks
Risk Management focuses on identifying, assessing, and mitigating risks across various areas of an organization, while Change Management is centered on effectively managing the implementation of specific changes. However, there is an intersection between these two practices when handling the risks that arise during change initiatives.