Below is a revised organizational chart of our business which I created this week.
All of our staff are outsourced and currently none have a full-time position except for me.
I never saw the benefit of creating an organizational chart before. What’s the point really when I’m fulfilling 90% of the roles anyway?
Every position within the organizational chart carries with it specific roles, responsibilities and tasks.
I’ve come to realize just how beneficial the organizational chart truly is.
Sets the Conditions for Growth
To me this was the most significant takeaway from Gerber’s “The E-Myth Revisited” book. For a small company to grow there needs to be a system in place whereby all tasks are broken down into repeatable procedures. By creating an organizational chart we can start at the bottom, develop a comprehensive operations manual for the Administrators and Bookkeeper so that they can perform their roles autonomously.
For a small business such as ours, this is a way for myself (an aspiring COO) to reduce, and eventually eliminate doing the technical work myself. By working upwards through the organizational chart, hiring team members once their operations manual is completed, the business can grow naturally and smoothly.
Ease of Hiring New Team Members
It gets really messy hiring somebody to do ‘general administrative tasks’. Without knowing clearly in advance exactly what roles they’ll be doing, it’s hard to assess their suitability for the job until they’ve already been hired.
By defining the roles, and the responsibilities that go with it I can tailor the recruiting process to ensure they get to compete on the same work they’ll actually be doing once they’re hired.
Clarifies the Company Structure
The True Potential Group Inc. doesn’t actually do anything. It’s a legal entity which holds our business bank account, merchant account, credit status etc. Within the corporation we run many businesses: Art From Steel, Truepot Distribution, Save Energy Hub and The Zap Box.
In creating our organizational chart you’ll notice that no roles are specific to any of these businesses. This clarified for me that it’ll be most practical to arrange job titles around the work rather than by the business. The logic here is that if a team member is skilled at customer service then they’ll be equally skilled servicing clients from all our businesses. Perversely there’d be too many roles involved in a position to have one person responsible for every aspect of one business.
Everybody Knows their Place
This is practical in the future when projects require cooperation between different team members. It’s also beneficial for low-level members who can aspire to move up a level in the future.
Facilitates Organizing The Operations Manual
By assigning specific tasks to each role, we now have 12 clearly defined Operations Manuals, each with procedures specifically for each role.
Shows Where Team Members are Unnecessary
Most of our HR budget is spent of programmers and designers. Their work varies significantly and there’s no one best person who will be an expert in everything.
Creating the organizational chart made me consider that our programmers and designers should be considered as external contractors only. Their work is not consistent enough for them to stay committed to us and we often lose programmers when they get snapped up by a large company prepared to give them more hours, more money and a commitment for longer-term work.
Instead it should be the role of our managers to recruit and manage these external contractors when needed.
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