How an Organizational Analysis for SMEs is developed


Here are some Useful recommendations to analyze the Organizational Structure …


As already discussed in the article “The Effective Organizational Structure for SMEs“, most Italian SMEs do not have an “Organization chart” or “Function chart” (that is, the graphic scheme of the distribution of roles associated with company subjects), nor of “Procedures” (ie the coding of company Processes) and this represents a concrete “obstacle” to be able to conduct a useful Analysis of the Organization and Organizational Structure of the Company, in order to eliminate inefficiencies and optimize the combination of production factors.

Definition of Organization and Organizational Structure

In the business context, an Organization can be defined as the set of Processes (a “set of Activities” that transform the Input (Eg: Raw Materials) into Output (Eg: Products) taking into account Resources and Constraints) , the Materials, the People who supervise them, as well as the coordinated Tools for the achievement of an Objective set by the Company Management. From this it follows that the Organizational Structure represents an elaborate Formal Scheme of Communications, Relations, Rules and Decision Processes, codified in the Company.

How an Organizational Analysis for SMEs is developed

In order to conduct an “Effective” (able to meet the Objectives) and “Efficient” (optimizing the available resources and in the shortest time available) Organizational Processes Analysis, the following “steps” must be followed:

  1. Identification of Business Processes: distinguishing “Primary” Activities (Internal Logistics, Operations, External Logistics, Marketing & Sales and Services) from “Development” Activities (Company Infrastructure, Human Resource Management, Development of Technology and Procurement) following ME’s Value Chain Model Porter;
  2. Analysis of Production Processes (if any): dividing each of them into Sub-Processes and individual Process Phases highlighting the “Added Value” Activities from the “Non-Value” ones (containing the “Waste”);
  3. Identification of the Business Subjects concerned: allocating each of them to each Phase of the Sub-Processes and identifying the related Duties, Roles and Responsibilities (in coordination with the other Functions);
  4. Coding of Individual Company Procedures: once the “Mapping” of the Processes has been completed, the Organizational Analysis must be completed by drawing up the written Procedures.


In summary, it must always be remembered that each company is different from the other, presenting different and exclusive peculiarities and problems, and it is for this reason that each Organizational Analysis must be “customized” for each individual SME, identifying the “solutions” best suited to a particular business context.