Our client, a two-year old SME, was facing growth stagnation as administrative items were taking away from management focus. The CEO was spending two hours per day signing checks and approving purchase orders, for amounts from several hundred to hundreds of thousands. This slowed down the progress within the company, and it started to feel like an old and slow business.
SME Law and Hammad & Al-Mehdar in consultation with company management built a corporate governance structure that (1) mapped the organization and identified each office’s roles and responsibilities, (2) transparently tied delegation of approval and spending authorities to the organizational roles and responsibilities, and (3) expressed the policies and work instructions that various employees should follow in carrying out their duties. This gave management and shareholders the comfort to delegate according to established processes and guidelines, and gain back valuable decision-making and operational-attention time.
- The company was able to build a clear organizational structure with identifiable roles and responsibilities for each position.
- A thorough delegation of authority matrix allowed management the comfort to delegate with proper oversight.
- Management formulated a sustainable growth structure that will allow the company to grow based on roles and offices, rather than individual decision making.