In the world of business, every organization is looking to achieve consistency, stability, and growth. Most of the time this doesn’t happen though.

With a majority of businesses failing, there is clearly something wrong. What is missing that results in so many people that put their blood, sweat and tears into starting and trying to grow a business just ends up failing?

A very important, and rarely discussed piece of this puzzle is what we refer to as establishment.

Establishment is more than just getting things up and running; it’s about laying a solid foundation that ensures your business or a specific area or function within it operates smoothly, efficiently, and in alignment with your long-term vision.

Establishment: More Than Just Starting Up

When we talk about establishment in a business context, we mean “to start something that will last for a long time, or to create or set something in a particular way.”

It’s about creating everything needed to support ongoing success. Establishment involves defining the structure, policies, procedures, and standards necessary for a particular function to operate effectively. It’s the process of setting the groundwork that allows a business to not just exist but do great.

As Peter Drucker said, “Efficiency is doing things right; effectiveness is doing the right things.”

Establishment is all about getting the right things being done the right way.

The Role of Establishment in Business

So what does this actually mean then? In a business role, establishment is about more than just ticking off a checklist. It’s a strategic function that involves:

1. Defining Structure: Establishment requires clearly defining the organizational structure, including roles, responsibilities, and reporting lines. This ensures that everyone knows their place and their part in the bigger picture.
2. Setting Standards: Establishing standards is vital for maintaining consistency across the board. This includes everything from quality control measures to customer service procedures. Standards tell your team when something is being one to the appropriate level or not and how to identify when something needs to be fixed.
3. Creating Procedures: Procedures are the step-by-step instructions that dictate how tasks should be performed. By establishing procedures, you ensure that operations are consistent, repeatable, and aligned with the company’s goals.
4. Allocating Resources: Establishment involves ensuring that the necessary resources—whether people, financial, or technological—are in place to support the function or department. Without adequate resources, even the best-laid plans will fail.
5. Ensuring Alignment: Establishment isn’t just about setting things up; it’s about ensuring that everything aligns with the company’s overall objectives. Every process, every role, every standard must support the business’s long-term vision and direction.

The Benefits of Proper Establishment

One of the tricky situations business owners and executives find themselves in is looking around and simply seeing so many problems or issues and just trying to chase and correct each one of them. It’s like playing Whac-A-Mole. By the time you hit one of them, the next one pops up. You hit that one and then 2 more pop up etc.

By focusing on fully establishing things, so many of the manifestations of lack of establishment, simply go away. Overall you will find the following when establishment has been fully done:

• Consistency: With clear structures, standards, and procedures in place, your business can operate with consistency. This consistency builds trust with customers, enhances efficiency, and reduces the likelihood of errors.
• Stability: A well-established function or department provides stability within the organization. This stability allows you to weather challenges and adapt to changes without losing momentum.
• Growth: Establishment lays the groundwork for growth. With a solid foundation in place, your business can scale more effectively, taking on new opportunities without compromising on quality or efficiency.

Establishment as an Ongoing Process

It’s important to note that establishment isn’t a one-time task. It’s an ongoing process that requires regular review and adjustment. As your business evolves, so too must the structures, standards, and procedures you’ve established. Continuously refining and reinforcing these elements ensures that your business remains aligned with its goals and capable of sustained growth.

In conclusion, establishment is the foundation of any successful business operation. It’s the strategic process of creating a stable, consistent environment where your business can thrive. By focusing on establishment within each role and function, you lay the foundation for long-term success, ensuring that your business is not just built, but built to last.

If you have any questions, or like to know more, click here to schedule a call with our Sales Team