then divided them into distinct process areas such as finance , HR , administration , procurement , facility management and more ,” Pallavi Saxena , director of business strategy with HFP , said . “ Defining the functions and doing a business process map is important as it helps us identify gaps , inefficiencies and bottlenecks .”
HFP also adheres to Entrepreneurial Operating System ( EOS ) principles , one of which involves assigning seats and job responsibilities for each business division to ensure a successful organization . “ Defining the seat and its corresponding roles and responsibilities first is crucial in finding a suitable candidate for the position ,” Llamas explained . “ Every quarter , we review our organizational structure to ensure it aligns with our current growth , goals and challenges .”
For UFP , operating 192 clubs in 14 states , the key steps to identify the required functions and roles are determined by figuring out the fundamentals of operating any business and then ensuring those teams are in place to have an effective operation . “ The back office consists of all the administrative and support functions that are necessary for an effective operation ,” Littles said .
After setting an overarching vision for the business , Excel has established functions and developed roles that serve the company ’ s overall strategy . “ We keep our members and team players at the center , analyzing what ’ s needed from a business perspective to serve those communities ,” Ryan said . “ We dive into the processes we need in place to ensure success and then back into roles with specific responsibilities .”
Too Much or Not Enough ?
To determine the appropriate staffing levels for departments within the back office , Excel first works with leaders to understand the current state staffing structure and whether the current resources and capabilities are adequate for completing the necessary workload . “ Given Excel ’ s rapid growth , we then ask departmental leaders to forecast the staffing model they will need to meet the increased workload ,” Ryan said . “ Departmental leaders are asked to estimate the increased workload , including an assessment of the skills , tools and capabilities they will need to successfully lead and manage their teams in the future , considering increases in the number of clubs we will operate , the number of members we will serve and the potential to expand into new geographies .”
“ Determining staffing levels for each department is based on the size of your franchise , considering the number of team members , club members and vendors , and it will require more than one team member or functional group to complete most processes until some efficiencies are established ,” Littles said .
At HFP , after establishing an organizational structure with designated positions , roles and responsibilities , each department is responsible for reviewing and revising its business processes on an annual basis or more frequently if necessary . “ By analyzing the volume of work , complexity and frequency of tasks , we can better understand our processes ,” Saxena said .
HFP has a detailed schedule outlining the tasks that need to be accomplished each month based on historical data . “ With 36 clubs , we had to decide whether to add an employee or invest in an automated system ,” Llamas said . Ultimately , HFP chose to automate the process internally to increase procurement capacity and potentially streamline the processes .
For instance , HFP ’ s operations team has a district manager who oversees five to seven clubs per district . “ After careful consideration , we have concluded that in our long-term planning , we will require an extra manager for every seven clubs we add to our ADA ,” Llamas said .
Some ownership groups further staff back-office departments based on growth . “ I ’ d like to say that this is a strategic process and that all organizational planning is done in advance , but we are often reacting to a need once we determine that we have leveraged the current team to maximum capacity ,” McGrath said . “ We are able to be much more planful in our field structure , as we have the foresight to know where we need to be building out a talent pipeline to staff new clubs , add multi-unit leadership positions , ensure we have sufficient resources within our facilities teams , etc .”
The efficiency of each department ’ s staff is reliant on both their operational processes and any available technology or automation to improve productivity . Finding the right personnel requires time and effort , so HFP regularly revisits the five-year hiring plan annually to ensure it stays on track . “ Our back-office structure consists of various administrative , support and operational functions that enable us to run our clubs smoothly and efficiently ,” Saxena said .
“ The key purpose of a back-office structure is to enable the business to run clubs efficiently and effectively , providing the administrative support needed to ensure the best , consistent member and team player experience ,” Ryan said .
Key Components and Functions These experts shared the key components and functions of a back-office structure , which include , but are not limited to :
• Construction – To construct new clubs and fulfill any re-equipment and remodeling needs for current ones .
• Data Management – To process , store , analyze and collect data to support business operations . It includes creating reports and
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GearedUp | 2023 Issue 3
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