How to Build a Department from Ground Zero

By Lyon Wealth Management on December 23, 2017

“The only constant is change.”  Heraclitus, Greek Philosopher of the late 6th century BCE

Delivery of a specific product or service requires work is accomplished using a system of clearly defined processes to achieve a common goal.  This is the core definition of a department. 

 Benefits of Building a Department

The purpose of creating a department is to provide a structure that increases the ability of a team of individuals in planning, problem solving and decision making for the company.  In order to be effective in this directive, it is critical the department remains focused on fulfilling a specific value proposition.

 Creating the Department’s Value Proposition

Each department’s value proposition must be in alignment with the organization’s overall strategic initiatives.  Review the entity’s long-term business plan, vision, mission and objectives.  Know how progress is tracked, measured and managed.  What are the company’s Key Performance Indicators (KPI)?

Given your analysis, what role will the department play in meeting one or more of the organization’s goals?

Identifying Resource Needs

What knowledge, talent and skills will team members need to realize the value proposition?  We suggest you start your research by answering the following questions.  

• How many participants do you need to be successful?
• What support will be required to get the work done? 
• How will you create a positive and collaborative culture?  
• What systems and processes are required to allow people in the department to communicate with each other efficiently and effectively?
• How will you select, develop and retain the people needed to do the work?

We recommend you create job descriptions, skill profiles and work specifications for all department employees.  Create definitive policies, procedures and standards for advancement.  Invest in technologies that help team members excel.

Installing Metrics for Success

It is imperative to install solid analytics, systems for testing and for measuring performance right from the start.  This is the only way to determine which processes work and which do not.  It is also the most effective way to track the Return on Investment (ROI) the department will contribute to the achievement of the company’s long-term goals.

Designing a Process Map

The process map defines visually what and how a department will fulfill its value proposition.  It indicates what needs to be measured to identify and assess performance improvements.  The map documents each step that will be taken and when.

Preparing for Constant Change

Invest the time and effort required to document the processes that keep the department running efficiently.  The documentation must emphasize the roles, objectives and tasks of each participant.  Plan on employee transitions occurring no matter what systems you have in place.

Copyright 2019 by Randy Stemmer.  All rights reserved.  No portion of this article may be copied or disseminated without the written permission of Randy Stemmer.

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