For the sustainability of any business, there must be several layers of accountability.
The reason long-lasting businesses implement management of their processes in layers is because blind spots exist everywhere, and even the best of us have them. It’s not because they have too much money to spend. No! It’s because it is important to have continuous monitoring at different levels.
That’s why you have different layers as shown in the image.
1. Executors are also referred to as operators in some industries. They ensure the day to day business is done and products/services delivered. These are machine operators, shop sales people, classroom teachers, etc.
2. Supervisors ensure that executors do what they should do, the right way and at the right time.
3. Managers are responsible for the people and the performance of the entire team of supervisors and executors. They are the main link between the people and the company. They interpret company policies and translate to operational processes. They also give feedback to directors stating wins and challenges.
4. Directors form company policies and cascade to the managers to oversee implementation. They also are responsible for strategic decisions to steer the company in the direction desired.
5. CEO is one person responsible and accountable for the overall strategy, direction and results of the business. His/her decisions make or mar the entire company. He/she is also responsible for communicating with the board.
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This is a simple illustration of a deeply complex system that any growing company must pay attention to, if they want to last long.
In conclusion, while some people do not believe in hierarchical business structure because people create sub-kingdoms that may be injurious to the company, its positives far outweigh the negative.
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