Org Chart Management - Establishing an organizational & personnel chart - a hiring chart that rolls into your financial pro forms is going to be an important tool for you, your management team and, eventually, your Board of Directors.
Strategic Results for a division - Each division has a strategic result that it must achieve (unconditionally) to justify it’s existence. For example, you may decide that your sales division has a strategic result of “build brand value and drive top line sales to create cash flow.”
Who to lead it? - Determine your top hire for a division is among the most critical decisions you will make; effectively this hire will set the tone for the entire division and also reflect on you - after all, you hired the division leader.
Managing the process
Position Agreement - We discussed position agreements when it comes to a one-on-one review, but what about new hires? We include position agreements in the organizational chart and require a detailed analysis of the role prior to commencing a hire or promotion.
Offering (total comp) and can you afford it? - Here, we map the hiring needs to the financial budgets - ensuring that we have the working capital (i.e. cash-on-hand to support the operational expenditure) for months (typically 12 months). This way, there is no concern over business fluctuations (cash flow, cash, etc) that may impact the new hire. The worst thing for culture is a situation whereby someone has been hired and the cash is not available to support it. (Been there, done that - it’s not fun for either side)
PRF & CRF - Position requisite forms (PRF) and confirmation requisite forms (CRF) are used to manage our recreating efforts. The PRF is the business case for the hire (typically a return on investment or risk-management case) alongside the Position Agreement. With this information, the recruiter can actively pursue candidates for the role. Once the hiring manager has determined there is a good fit, she will complete a CRF so that the payroll forecast is updates and our financial pro formas are updated. This is critical - payroll is the largest operational expense in any organization - it can make or break a company; be sure to keep your eyes on the payroll numbers and understand when you should stop and start hiring.