Sunday, January 13, 2008

Trouble Getting Organized? How to create an Org Chart.

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Trouble Getting Organized?

"I've Gotta Get Organized!"

Every year about this time, people make resolutions to really get organized. "I've gotta get organized! I can't even start on my project because I can't seem to 'get organized.'"

Struggling to create your Org Chart?

Do you really want to build an organizational structure? Yes? OK. Here's more about how to start building your "Org Chart" ...

When you create an Organizational Strategy, you arrange things in a pattern or structure so you can act to achieve a specific goal.

Are you concerned about how to delegate what to whom? First, you must create your Organization Chart so it shows a "box" for every management position.

Take a look at my sample Organization Chart:

management organization chart

Basic rules for creating your Org Chart:
1. Make sure each "box" represents a Strategic Objective.

2. In each box, you list Tactical Objectives (not shown).

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. Never be convinced to break 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.

Why organizational design problems persist.

Managers usually neglect to properly design their organization because it seems too "academic." But, when you actually design your organization, you will realize long-lasting benefits.

When it comes to getting organized, "Immediate action produces immediate results!"

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.

management organization chart

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?)

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. (In my organization, QA monitors the condition of people, not products; QC monitors the condition of products.)

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, FINANCE ("sell it, build and deliver it, and get the money").

I added the LEGAL department more recently - under the CEO - because he is accountable for legalities even if the work is outsourced.

(NOTE. I deliberately omit politically correct "he/she, his or her" wording to minimize further confusion. I base the Org Chart on FUNCTIONALITY, not 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.)

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.

For more details about organizing your company , see Trouble Getting Organized? How to Create your Org Chart.

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