Why Is Separation of Duties So Important for Tech Startups?

We get it.

We understand how hard it is to run a startup. There always seems like there are a hundred and one different things to do. But you can’t afford to hire a bunch of personnel. Instead, you’re finding yourself spreading a variety of work tasks across a small team of individuals. 

As the boundaries of individual duties blur, your employees find yourself doing all kinds of work that they are neither trained for nor good at. This exact situation is one that can be highly detrimental to the growth of your organization.

Thankfully, separation of duties can help avoid this unfortunate scenario from materializing in your startup. In this article, we’ll discuss why the separation of responsibilities is so important and how it can positively impact your organization.

Why is the Separation of Duties So Important?

The first thing to know is why you would want to do separation of duties in the first place.

To understand the value that this policy will bring to your organization, it’s important to first understand the basic principle of competitive advantage.

This basic economic principle is key to how organizations are structured today. It states that when people do work that they are best at, everyone is able to profit. This exact philosophy was the driving force behind Henry Ford’s revolutionary introduction of the assembly line to mass manufacturing.

If duties are separated according to each employee, then each employee will naturally develop an affinity for that specific type of work in the long-term. They will each get to become very efficient at their specific task, whether it’s SAP SOD or handling customer service requests, and able to accomplish it both well and speedily.

Now consider the same workload randomly distributed across your personnel. Because they never actually get to focus on one kind of task and get really good at it, they end up becoming mediocre at everything.

With a separation of duties policy, you can enable each employee to specialize in that which suits their skillset. The end result is massive productivity for you in the long-term.

As an added bonus, your employees will love this policy. This is because it will enable them to specialize in a specific niche of your industry. This will in turn make them more marketable resources, increasing their long-term career potential.

Improve Organizational Efficiency

In a nutshell, a solid separation of duties policy will help you to vastly improve organizational efficiency. And when you’re a startup low on funding and low on human capital, then efficiency is the name of the game to carving the most productivity possible out of your few resources.

Now that you know why it’s important, all that remains is for you to start implementing the separation of duties in your organization today. Let us know how you plan to do so in the comments below!

If you’re looking for more startup advice, then you’re in the right place. Be sure to check out the rest of the website!