Rules for Building Organisation Charts

Organisation charts are a crucial part of any efficient business. Today I’m covering the Dos and Don’ts of this important business system.

DOs

1. Your Organisation Chart starts with your Strategic Intent – what is it the business does and how will it do it? How will it need to be structured to do it effectively and efficiently?

2. Build if for how you want it to be in the future – not how it is now. Like a house plan, design it for how you want it to be and then work out how you will live in it and grow into it.

3. Each box represents one position or function:

a. Remember : there cannot be more than one person in each box. Where there are two owners, such as a husband and wife, or two business partners, you have to make a decision. The one place you can have more than one person is at Board level – the board of directors.  You might have a DEO or MD underneath that (only one person); you might split the responsibilities with two Managers underneath – one in charge of Finance and Marketing and one in charge of Operations. You get the idea

b. There may be a number of people with the same position title – such as sales, or tradesmen.

4. Each position has only ONE manager.

5. Just because there is not a full time person in that position now doesn’t mean you don’t draw it. Let’s say you don’t have a marketing director.  Well, you actually do, because it’s a function of the business and marketing has to happen, so someone is doing it (whether well or not is not the point). Usually at this stage, it is the business owner, as everything not delegated to someone else falls on their shoulders.

6. If a position exists on the organisation chart, it has a clear outcome. Decide what the outcome or purpose is for every position on your chart.  Be careful here.  What the person does in their job is NOT the outcome.  The outcome or reason their job exists is the result of what they do.

7. Put the name of the position in the box – that way you don’t have to recreate the chart every time someone leaves. The business still needs that function.

8. You can then put initials under the title as you allocate who is doing what.

DON’Ts

1. Never create or delete a position to please someone.
2. Never create your business or your organisation chart around people.
3. Don’t call someone a manager if they are not managing positions underneath them.
4. Don’t give any one any more than 5 people to manage.

Until Next Time…

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Building Your ‘A’ Team – Part Seven

In this final part of the Building Your ‘A’ Team series, I cover the final piece in this smart and efficient hiring/recruiting system.

EVALUATION SHEET

Let me tell you a bit about the Evaluation Sheet. As I said at the very beginning, ideally you want to be able to assess these candidates on as level a playing field as you can, and as objectively as you can.  So what you need is a way to score them. Think Olympic Diving: the judges have a set of criteria against which they allocate points. You can do the same.

Imagine you have a form, a small chart and the things you are going to assess are listed on it. Next to each is a rating of 1,2,3 4 and 5.  5 is outstanding and 1 is unsatisfactory. Continue reading

Building Your ‘A’ Team – Part Six

Building your A Team

In this Building Your ‘A’ Team series, we have been covering customized system and processes for hiring and recruiting. This week, I’m covering the Long Interview.

The Long Interview

First, look back at the Flash Interview and see what that told you about the applicants. Notice how it’s generally all about qualities and attitudes.

Think about the qualities you want: enthusiasm, keenness, willingness to learn, common sense and so on.  Continue reading

Building Your ‘A’ Team – Part Five

team seminar

Last week, I introduced you to a new hiring/recruiting process I will be referring to as the Information Seminar and Flash Interviews. As promised, today I will be going over the process of this system.

So, here’s the process…

Once you have screened or filtered your responses, someone will call them all using the same script, which will go along the lines of: Continue reading

Building Your ‘A’ Team – Part Four

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Last week, I promised to share with you the most fantastic interview process that is not the stock standard way of conducting new employee interviews.  Believe me, it works brilliantly. It will save you tons of time and will deliver the best results. If you follow the steps exactly, you will be so excited, you will never do it the old way again.

This system may take you out of your comfort zone.  But hey! That’s the way we all grow – by doing something outside our comfort zone.  And, as I promised, do this once and you will want to do it this way every time in the future. Continue reading