How Can We Set Up an Effective Organizational Structure and KPIs for Our Small Team?

We are an architect and real estate development company with a team of 8 people. Our team consists of 3 planners and designers, 2 site engineers, 1 accountant, 1 receptionist and admin staff, 1 salesperson, personal secretary, and the owner.

I would like guidance on how to establish our organizational structure, Key Result Areas (KRA), and Key Performance Indicators (KPIs) for the company.

Kudos to you for thinking of bringing professionalism into play even though your organization is a fledgling. Before we provide suggestions on KPI/KRA, which we think should be kept simple for a start-up, are you planning to grow as an EPC company, or do you plan to stay a Real Estate developer/Development company? Is your company a Private Limited, Partnership company, or proprietor-held?

From your description, right now you seem to have an in-house team consisting of an architect, planner, designers, site managers, etc. Obviously, to contain costs, you will be outsourcing the labor and material to a subcontractor. In case you are working on multiple projects, then you may outsource labor and retain procurement.

You will require every individual within your organization to understand his/her responsibility and accountability, among others, especially because you are a start-up. Therefore, begin with a vision that is common and owned by everyone. It should become your creed every day, striving to take your firm to great heights.

Best wishes,

ESP Think Tank

Before you proceed, please read the information provided in this link, which will give you more ideas: https://www.citehr.com/352787-hr-pra...-industry.html.

Of course, yours is a startup firm/company. It doesn't matter if you think of an appropriate model business plan. To start, consider creating an organizational chart/structure. I have attached a PPT for the structure's sake, although it's not essential for the present. However, it's important to focus on where you want to take the organization and how you should align it with your corporate goals for the present. I'm not aware of how big your business is or your plans for the future. Nevertheless, you will be equipped with ideas for the future, and that's good.

Here is a simple chart attached. Regarding KRA/KPI, you have to spell out the corporate goals and your future plans so that you'll get better advice from our members.

An organizational chart simply provides the reporting structure of the organization. There are two types of organizational charts: A) Site-Specific, and B) Region-Specific/HO/Company-Specific.

Points to Consider When Preparing the Chart

When preparing the chart, you have to consider the following points:
1. Direct reporting.
2. Administrative reporting.
3. Functional reporting.

Charts specific to the company or region of the head office are prepared for leadership positions whose reporting is above the site level, such as Regional Heads or Project Heads.

A site-specific organizational chart consists of direct reporting, where the employees in the operation department report to the operation head, who, in turn, reports to the Site Head. However, some departments serve as support functions, like Finance and Human Resource departments at the site level, which have administrative reporting to the Site Manager and functional reporting to their department head at the regional and head office levels.

I believe this addresses your query.

For your reference, I have attached a sample and easy-to-understand flowchart for an ordinary organization.

Developing Key Responsibility Areas (KRA)

Regarding KRA (Key Responsibility Area), you need to sit with each employee and check their duties and responsibilities. After jotting down all the responsibilities, you may review them with your director because sometimes employees declare extra duties that they are not actually performing.

Selecting Key Performance Indicators (KPIs)

Once you develop the KRA, you need to select KPIs from the KRA.

Most of the seniors have already replied to you and guided you in a professional direction.

Wishing you good luck.

Regards