Focus on your organizational structure before expanding
Speaking to achievers like Puni, I am more and more convinced of the importance of organizational development for enterprises to thrive in the long haul. Identifying and pledging to a social goal may seem to be the most important issue for your business. However, it is an easy decision when compared to realizing and sustaining it.
As Head of empowering people. Network, I have had opportunities to get an inside look into the various stages of a social entrepreneur’s journey. Surprisingly, I have found the significance of organizational development often discounted from the onset.
The first step before a startup even thinks about its growth phase is to asses and then assemble the different aspects of the venture. It is absolutely imperative to establish structures and processes that will ensure not only a seamless transition but also an effective running. I have often noticed social entrepreneurs caught off-guard by this reality. Sometimes they are so focused on improving and selling their innovations alongside fundraising, that they become myopic to internal requirements like decision-making models, delegation of responsibility or exploring future-oriented leadership approaches.
Simply copying supposedly ‘western best practices’ of structuring organizations will hardly work to break the vicious circle. Our network offers different ways and tools that help with leadership questions like employee recruitment and development, defining responsibilities and ensuring recognition. Alternative organizational models like Holacracy that focus on defined roles instead of inflexible functions, can be a good way to establish sustainable internal structures for enterprises that strive for social impact not only through the solutions and services they offer, but also as good and responsible employers.
One of our network members Ana Luisa Arocena also echoes this view. Her journey from a chemist to launching Uruguay’s first toxic waste tracking technology Triex has been that of trial and error. As she puts it: “Seventeen years after we founded our company, it is only now that we are in the process of organizing ourselves as a self-management organization.” A financial crunch in 2009 forced her to sell 70% shares to an Uruguayan engineering company. The ‘new’ conventional organizational structure posed challenges like non-committed employees, loss of a pioneering spirit and a disconnect from the community. Ana Luisa and her colleagues explored options looking to build a more horizontal and democratic structure. They took advantage of a government regulation that assists with development funds for cooperatives and self-management companies. Ana Luisa invited her employees to apply for the funds. “In February 2018, 10 among our 17 employees came together to establish a limited responsibility company and became owners of the 70% shares. Now we have a more closely knit structure - conducting weekly meetings with our partners. I think we are doing well”, Ana Luisa adds. Unusual and creative approaches often provide the key to sustainable solutions.
