Your Organisation Chart forms the spine of your business; it holds the business upright and provides the link between the shareholders and business activities.
The purpose of an Organisation Chart is to:
- Show how the business works to serve the needs of its shareholders.
- Ensure the business is adequately resourced by people.
- Provide clear accountability – who is responsible for what.
- Show how the departments and positions interact.
- Ensure the business can deliver on its Strategic Plan.
A clear Organisation Chart identifies the 10 departments in your business and their functions, as well as the key responsibilities and who is responsible for them.
Here are five ways to get the most out of it:
1. Keep it visual.
Your Organisation Chart should be a clear, visual structure that shows how your team works together. Share it with your team and display it so it’s visible.
2. Know your departments.
There are 10 departments in every business. It’s essential that you understand what these are and the function of each. Understanding the function allows you to understand which department a key responsibility belongs to.
3. Know the roles.
Define every role in your business. Don’t shape a role around a person; determine the tasks and responsibilities for a role before thinking about the individuals on your team. Remember, each department can only have one leader, otherwise there is confusion for the team as to who they report to and where the accountability lies.
4. Respect the hierarchy.
Determine the hierarchy and how the positions and departments interact. Respecting the hierarchy means that a leader doesn’t bypass managers to give instructions to team members and that team members report to their immediate superior.
5. Train the team.
Ensure your team understands your Organisation Chart and the protocols around it so they respect it. This training is as important for the leaders of the business as it is for the team members.
Understanding these fundamentals allows you to create an organisation structure that enables effective delegation to free up your time, identifies gaps in your resourcing, and improves your business culture.
Get in touch now to develop your Organisation Chart!
“Let systems run the business and people run the systems. People come and go but the systems remain constant.” – Michael Gerbe