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Trouble Getting Organized?
(cont'd from "Profitable Venture Tactics eZine")
Sample Organization Chart
(Details below)
CONTENTS (all links on this page):
1. Struggling to create your Org Chart?
2. Here are basic rules for creating your Org Chart
3. Why organizational design problems persist.
4. Here's a proven approach.
5. Then, what's a manager supposed to do?
6. Is your company plagued by Migrating Unidentified Memos?
7. We can help you get organized (Shameless Promotion).
"I've gotta get organized! I can't even start on my project because I can't seem to 'get organized.'"
Do you really want to build an organizational structure? Yes? OK. Here's more about how to start building your "Org Chart" ...
1. Struggling to create your Org Chart?
Let's say you've actually decided to create your Org Chart. Are you concerned about how to delegate what to whom? Remember that you create an ORGANIZATIONAL STRATEGY when you arrange things in a pattern or structure so you can act to achieve a specific goal.
First, you must create your Organization Chart so it shows a "box" for every management position.
2. Here are basic rules for creating your Org Chart
Here some basic rules for you to follow:
1. Make sure each "box" represents a Strategic Objective.
2. In each box, you list Tactical Objectives (more below).
3. Put the Position's Title - NOT a person's name - in each box. This prevents your need to update the Chart for every personnel change.
Important! NEVER create or delete a position to please someone. Don't ever be charmed to into breaking this rule. Don't create your organization around personalities or prima donnas. (What happens when they leave?)
Instead, have personnel fit your organization, not vice versa. You may need to retrain people, move them...or let some go.
3. Why organizational design problems persist.
Managers usually neglect to properly design their organization because it seems too "ivory towered." But, when you create and organizational design, you will realize long-lasting benefits.
Again, when it comes to getting organized, "Immediate action produces immediate results!"
4. Here's a proven approach with sample Organization Chart.
I created my Org Chart around the idea that you "sell it, build and deliver it, and get the money." In that order.
Some ventures sell an idea to an investor to get the money first.
This often makes the company more accountable to the investor than the customer. In Silicon Valley, we've seen what can happen when people get the money first, if you know what I mean. (Like giving credit cards to a teenager?)
Take a look at my sample Organization Chart:
Notice that under the CEO/President, I have Vice Presidents.
The above chart doesn't show the following, but...
UNDER VPs, I have Directors.
Under Directors, I have Managers,
Under managers, Associates, etc.
Notice that I put the QA Manager under the President - but that's a topic for another article.
The general rule is:
The CEO delegates to VPs who delegate to Directors, who delegate to Managers, who delegate to Associates, on down the chart.
Remember: The CEO's Strategic Objective is by definition the Organization's Strategic Objective. His Tactical Objectives are MARKETING, OPERATIONS, and FINANCE ("sell it, build and deliver it, and get the money").
(NOTE. I deliberately omit politically correct "he/she, his or her" wording to minimize further confusion. I base the Org Chart on FUNCTIONALITY, not politically correct plumbing!)
Each VP inherits ONE of the CEO's TACTICAL Objectives as his STRATEGIC Objective. Confused?
(The difference between Tactical and Strategic depends on the Position's PERSPECTIVE. The Objective remains the same.)
"Hey Mike, that really clears it up!"
(Read on.)
Now, notice that I numbered the top-level departments 1.0, 2.0 3.0, etc? Also notice that departments are color-coded. This allows color-coding of Pendaflex folders and computer folders (if you use a Mac).
Let me explain the departmental numbering system.
Take 3.0 MARKETING for example. The MARKETING VP (3.0) inherits the CEO's TACTICAL Objective, MARKETING as his STRATEGIC Objective.
So, the Marketing VP divides his STRATEGIC Objective into four TACTICAL Objectives as follows:
Advertising,
Sales,
Market Research, and
Customer Service shown below.
For details see Marketing VP Org chart. This will show you how the marketing departments are numbered and how the VP Marketing delegates his TACTICAL Objectives to Directors, etc.
For example, Sales (for example) is a STRATEGIC Objective - inherited by the Director of Sales who is accountable for ALL sales, which again is divided into two Tactical Objectives.
OK. Let's review.The President's STRATEGIC Objective IS the company's Strategic Objective. His TACTICAL Objectives are to Sell, to Build, and to handle Finances (represented by the Marketing, Operations, and Finance).
Then, the CEO creates and delegates his TACTICAL Objectives, which become STRATEGIC Objectives at the next lower level position.
The next lower level position divides his inherited STRATEGIC Objectives into TACTICAL Objectives, which he delegates to his lower level...on down the chart.
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Really want to get organized? Answer one simple question and I'll give you a copy of my practical eBook on "Organizing your Business for Success" ($37 value) absolutely FREE! |
5. Then, what's a manager supposed to do?
"Hey Mike, if all the work gets delegated to succeeding levels, it seems like there's nothing for the managers to do."
Yes, I know it sounds that way. So, let's identify the work inherent in all management positions. People have the idea that managers do certain things and subordinates do other things.
But, what "things? There's a difference but what is it? People use terms like "Management Work" and "Managerial Work" for managers and "Operating Work," "Functional Work," or "Technical Work" for subordinates.
For more details on how we use the terms "Strategic" and "Tactical" to identify the TRUE difference, see Org Chart Strategic & Tactical Objectives. These terms are consistent with Organizational Objectives. Also, they express the difference between management and subordinate PERSPECTIVES.
As a manager, you do Strategic Work. Your subordinates do Tactical Work. As a manager, you establish and maintain a STRATEGIC perspective and leave the TACTICAL perspective to your subordinates.
The Objective stays the same, but the PERSPECTIVE changes. For example, let's say you're a manufacturing manager and YOUR manager's Strategic Objective is to trim costs. He might come up with two Tactics, including
Streamline Manufacturing and
Reduce Raw Material Costs.
Your manager might delegate to YOU, as Manufacturing Manager, his Tactical Objective called Streamline Manufacturing. Thus, you inherit his Tactical Objective as your Strategic Objective. Your job is to create and delegate your own Tactical Objectives to your subordinates.
"But, having done so, does that leave me with nothing to do?"
No. You'll have just a few things to do, like staffing, training, decision making, integrating activities and resources, delegating, calculating work-in-progress, identifying deviations, approving, disapproving, reporting...should I continue?
"No Thanks!"
Again, as a manager, you do Strategic Work and delegate Tactical Work to your subordinates.
"OK. Why the fancy numbers?"
Sorry, I got sidetracked from our fancy numbering system. For details, see Org Chart Numbering System.
6. Is your company plagued by Migrating Unidentified Memos?
Ever hear a conversation like this?
MGR:
"Where the hell did these pages come from?"
SUB:
"I have no idea!"
MGR:
"Well they need to be updated -they're causing problems in both Sales and Manufacturing."
SUB:
"Oh well, I guess we'll have to re-write them, then republish and circulate. Hmmm, I guess we better recall the wrong ones! Who has them?"
MGR:
"Beats me, we have hundreds of employees ... better get moving!"
SUB:
"Yes Sir. Three bags full!"
Sound familiar? That's what I call the "Migrating Unidentified Memos syndrome." For details on how to solve this problem for both computer files and documents, see Org Chart Numbering System.
Without this numbering system, unidentified memos (or worse, unidentified pages) circulate and cause problems. We systematically avoid that problem.
"What's another use?" We use our numbering system for all Position Contracts and Operations Manual documentation.
If you have other questions, get this FREE Book!
7. We can help you get organized (Shameless Promotion).
Most managers these days suffer increasing pressure to slash costs and get more done with fewer people. I work with managers and executives to relieve this pressure of having to boost production and profits with fewer people. I like to say, "We take the pressure off!"
But, I don't know whether we can do the same for you because I don't know you. But, if we COULD relieve your worries, would you like to learn more? If we can't increase your profits and save you time, money and trouble - you pay nothing!
I fully expect your costs to be a small part of your increased profits and savings (making our service essentially FREE!)
Find out for yourself! You have nothing to lose.
Over two decades, SMS has saved time, money, and effort for scores of companies in Silicon Valley (and from Toronto to Hong Kong)! This means you benefit from techniques proven successful on over 300 projects.
You decide. Don't let Dis-Organization stunt the growth of your business organization!
First, (if you haven't already) sign up for Profitable Venture Tactics eZine so we can become better acquainted.
When you're ready to get started, just call (408) 817-5684 for a Free Needs Analysis.
To Your Business Success,
Mike Hayden, Principal/Consultant
Your partner in streamlining business.
ABOUT MIKE HAYDEN:
Mike Hayden founded Documentation Express in 1974 and Senior Management Services (SMS) in 1984. SMS is a business-consulting firm that helps clients increase profits by re-engineering processes, managing quality, and reducing costs. He is also an expert in organizational development and strategic planning.
Mr. Hayden has helped 2Bridge, 3Com, Abbott Labs, AMD, Amdahl, Applied Materials, Applied Materials, Bank of America, Concept Systems, Crown Zellerbach, Cutek, Diasonics, Geoworks, Harris, IBM, Intel, ITT, JPL, LaserSonics, Link General Precision, Lockheed, Lockheed, Measurex, Qume, Rolm, SRI, Sun, UltraTech Stepper, VLSI, and many more.
For more information, send email.
(c) 2003 Mike Hayden, All rights reserved. You are free to use material from the Profitable Venture Tactics Ezine in whole or in part, as long as you include complete attribution, including live website link and email link.
Senior Management Services
650 Castro St., Suite 120-480
Mountain View, California 94041
Fax: (952) 674-1767
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CLIENT COMMENTS
"Dear Mike, I congratulate your design concept ... the job was a cinch with your having laid the design ground work ... I'll be happy to work with you again." -- E.L., President, InterMedia, Los Altos, CA
"Interaction with our personnel is effective ... services free of problems."-- M.M., System Network Manager, IBM/ROLM, Santa Clara, CA. "... professional and appropriate ... always punctual ... well coordinated." -- J.C., System Engineer, IBM/ROLM, San Jose, CA
