Creating a Successful Organisation Chart For SME (5-100 Employee) Businesses

THE NUMBER ONE RULE, THE BIG ONEand have to manage all these guys too. You have a
The number one rule with organisation charts is makepartner who makes the "stuff" - she's in charge of
sure you have one before you need one. Okay tooOperations. So, your org chart needs to have you at
late - but still, today is better than tomorrow, andthe top (as Shareholder), then another box
this week is a lot better than next year. Why? Wellimmediately below with you again (MD or CEO). So
the organisation chart isn't really about empoweringnow there are two boxes with the MD (you)
the organisation. What?!? That's right - its aboutreporting to the shareholder(s).
empowering yourself to let go, to delegate, andOut to the side of the MD box you need the Sales
most importantly to delegate well. Sounds good - orDirector (okay you again!) and the Operations
at least it ought to. If you aren't focussed on lettingDirector (your business partner), plus a box for
go then ask yourself two serious questions?Finance Director (yes - you again). Then under Sales
1. Why are you running your own business? To makeDirector you want the Sales Manager (yes you) and
money of course, but surely you want freedom too.then under this you can start to put your sales team
Freedom to do what you want to do, when you(note - if one of them does maybe some selling and
want to do it. You aren't building a business formarketing, or is also the product manager say, you
someone else - it is there for you - so lets makeshould give him/her more than one box too). You
sure we get what we want.repeat this for your Marketing team (under the
2. How are you going to build this business ifmarketing manager - you again) and the Ops team,
everything it does is reliant on you?finance team etc.
SO LETS GET STARTEDWHY ALL THESE EMPTY BOXES?
Think bigWell, take a look at the chart you have just drawn.
Building an organisation chart is easier than you thinkNow you know where you are going in BUILDING A
it is. But, don't waste your time building one for theBUSINESS and being able to DELEGATE to others.
current organisation, at its current size with itsSomehow, in growing the business you need to find
current staff. You need to think forward to the sorta Sales Manager and eventually a Sales Director, etc.
of structure and organisation that you will want whenetc. Only by filling these positions will you be able to
the business is two, three, five times bigger. Surebuild a successful business that doesn't entirely
that means more boxes than people, but that's whatrevolve around you doing all the work (and hence
we want.having no time to build the business - the classic
THE EMPTY BOXEStrap!).
When you create the organisation chart, createONE FINAL PROBLEM
boxes for staff who you don't have yet. This is theOne problem I see everyone struggle with, is the
most important bit! You'll see why shortly, but first andifference between Managers and Directors. What is
example to make things clear.the real difference? do we need both? Well you'll
AN EXAMPLE USUALLY MAKES THING CLEARER:have to wait for a future article on that one. But I've
For example, lets say you run the business and haveenjoyed writing this one so I hope to get onto that
day to day responsibility for managing sales,subject before too long. I'll also be tackling Job
marketing and finance - you have a few sales staffdescriptions too - a bit of a natural follow-on from
and a marketing guy but do the invoicing yourselfthis article.