Many business advisors advocate setting up an organizational chart for your business, regardless of size. This may sound strange for a business with one (or two) people, but an organization chart is appropriate for all business sizes for the following reasons:
- Provides a clear business focus
- Drives human resource excellence
- Maximizes efficiencies
The organization chart is capable of providing a clear business focus by identifying each line of business, and within each business line, grouping the components in the product/service development and delivery, and providing clear accountability. The organization chart communicates whether the business is product or customer focused and illustrates centralization and geographic organization, both of which impact customer responsiveness.
The organization chart also drives human resource excellence by recognizing lines of authority, spans of control and decision-making processes; these are responsible for helping or hindering employee empowerment and productivity.
Finally, an effective organization chart is capable of maximizing efficiencies by reducing rework and encouraging 360° feedback. When designed effectively, the organization chart is capable of creating a culture that lends itself to continuous improvement with the assistance of feedback across management levels and business lines.
Does this apply to you, in your organization of one or two or three? What an organization chart (including job descriptions) does then is provide you with a clear vision and structure with which to drive your business forward. In a small organization, everyone wears multiple hats. By outlining all those hats on an organization chart, it becomes clear what the next step is as your business grows. Picture your business in its ideal state. Put in as many boxes as it needs to deliver the goods and services at that point. Then put your name in each box (for now). It will become clear, as you hire your first or second or tenth person, what you need them to do.
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|This article originally appeared in the August 2011 edition of The Beal Business Advisor. The issue also included:
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