What is the Hub and Spoke Model?
When you first start running a business, it seems simple. Sell a product or service, get paid, repeat. However, as time goes on things like workflow efficiency, workload distribution and task or project management become important KPIs. If you're looking to scale your business, consider using the hub and spoke office model to keep things running smoothly.
What is the hub and spoke model?
Picture a bicycle wheel. The central hub is surrounded by many spokes, which all begin in one location but lead to different ends. In a business context, everything originates from the hub and is then distributed outward by the spokes. The hub and spoke model has been adopted by many businesses and distributors due to its proven efficiency.
A polar opposite to the hub and spoke model is the point-to-point model. In this model, everything travels from point A to point B without passing through a central hub. Here's how to think about the differences between models. Let's say you and some friends are going for dinner together. In the point-to-point model, one person would drive to pick up each person and then drive to the restaurant together. In the hub and spoke model, everyone would agree to meet at the hub—the restaurant.
Examples of the hub and spoke model being used in the real world
There's a good chance you've encountered the hub and spoke model many times over, and perhaps not even realized it. Here are two examples of industries, which utilize the efficiencies and cost savings of this model.
Airports
Unless you live in a major city, you've likely experienced a serious lack of direct flights. This is because airports leverage the hub and spoke model in order to reduce the total number of flight routes. By using large city airports as hubs, airlines can service smaller satellite or “spoke” communities by routing them through the hub to other satellite communities.
While direct flights and no layovers may sound like a better choice for customers, the cost and logistics of offering worldwide direct flights from anywhere to anywhere is simply unfeasible, not to mention an air traffic controller's nightmare.
Schools
If you think back to elementary school, you'll likely recall childhood friends, fun activities, and a favorite teacher or two. But let’s not forget that at the end of the day, education is a business with hundreds, thousands, or even hundreds of thousands of students to manage, teach and keep track of.
In this hub and spoke example, the school office acts as the hub and each classroom is a spoke. The office collects fees, tracks attendance and handles student issues for the classrooms, while distributing news, supplies and resources to the classrooms.
Imagine if every classroom teacher was responsible for everything the office staff handles on top of teaching. Nothing would ever get done.
2 ways the hub and spoke office model works in business
The hub and spoke model can be incorporated into any business on a large or small scale. Whether you are a CEO or project manager in charge of employees, or a small business owner looking to organize documents, you can use this model to optimize your business efficiency.
Manage employees from anywhere
With more of the workforce moving toward remote work, businesses need to adapt to keep up with this global shift. Whether your employees and subcontractors (spokes) are working in a physical office, a home office, or on a beach in Bermuda, there needs to be a hub for all communication and tasks to filter through (which can also be on a beach in Bermuda).
Having a central location for sending and receiving daily tasks, check-ins, holding meetings, and submitting drafts and final products helps your business stay organized and keeps everyone in the loop, creating an environment for high productivity and efficiency.
Organize (digital) paperflow
We’ve all been there. It's tax time and you're digging out old receipts from the car, bags and desk drawers. You rip your office apart searching for missing paperwork, which you find in five different file folders and three different emails—you have paper trails everywhere. When it comes to your business, or even your personal life, unorganized paperwork can cause major headaches.
Using a central hub like Google Drive takes the guesswork out of where your digital files are located. By utilizing folders, you can organize your files and documents from your various spokes in one place. You can take this to the next level by sharing folders with your team so everyone can file documents in the same place, following the same system.
The hub and spoke model offers numerous benefits to businesses, including reduced routes or connection points, improved scheduling, increased efficiency and increased revenue. Technology can effectively link digital and physical worlds, creating a flexible and streamlined operation to help you take your business to the next level.
Categories
Subscribe to Our Blog
Archive
- November 2024
- October 2024
- September 2024
- August 2024
- July 2024
- June 2024
- May 2024
- April 2024
- March 2024
- February 2024
- January 2024
- December 2023
- November 2023
- October 2023
- September 2023
- August 2023
- July 2023
- June 2023
- May 2023
- April 2023
- March 2023
- February 2023
- January 2023
- December 2022
- November 2022
- October 2022
- September 2022
- August 2022
- July 2022
- June 2022
- May 2022
- April 2022
- March 2022
- February 2022
- January 2022
- December 2021
- November 2021
- October 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- September 2017
- June 2017
- April 2017
- October 2016
- July 2016
- May 2016
- April 2016
- February 2016
- November 2015
- September 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- August 2014
- July 2014
- July 2013
- May 2013
- February 2013
- December 2012
Talk to an expert
Want help finding the ideal meeting room? Give us a call
Book the Perfect Meeting Room Now
Find a Meeting Room