Transcript for:
Building an Effective Organizational Structure

hey Rich Allen here hey it's wicked cold out this week and so I was set up to do some videos so rather than write a blog this week I thought I'd maybe just take a quick moment show shoot a really quick video for you and give you the tip that I was going to write in my blog this week and the tip this week was going to be all about your org structure see here's what happens most people most business owners don't focus on their org chart they don't they don't think that it's all that critical but in fact it is it's very critical for people to know what their responsible for and how they relate to one another to make sure that there is nothing left uncovered that that all the loose ends are tied up so here's a couple of tips for you that I'd like to encourage you to think about one is build your organization chart as if you're looking 3 years in the future so look out 3 years what would your organization look like in 3 years imagine that draw it out and that way you'll be able to know where you're going to head with your organization the second thing I'd encourage you to do is draw your organization chart based on function based on function rather than individual so make sure that you have all the functions laid out rather than think about it so if you only have two or three people on your team there there are more than two or three boxes there may be six or eight boxes and and individuals are doing more than one job so you have to be clear about that by drawing your organization chart by function and once you do that looking three years out with by function then you can start to put individuals into the boxes and you'll notice I have a box that's different for the owner than for the operations manager that's for a reason because the owner who is you the owner's role is very different than the operations manager role which may also be you you may also be the person that's responsible for your marketing so you may find yourself in various boxes multiple boxes and there may be somebody let's say that Joe is in the operations box he may also be responsible for purchasing and the assembly function he may have three different operations that he's responsible for show that on your org chart it tells people in your organization that there's opportunities to grow that there are places that that I can aspire to move up to so lay it out for 3 years years Define it in terms of functions and then what this will allow you to do is be able to look at your organization of the future and be able to say with certainty here's the sequence in which I want to hire new people onto my team so as I look at my organization the first role that I want to fill is my marketing role I want to move myself out of my marketing role so that I'm no longer doing that and then secondly I want to add a sales rep to my team and then thirdly I want to get Joe some help on the assembly side so I can use my org chart to do several things to help my team know who's does what what responsibilities are tied to who it also tells me what opport opportunities are going to exist to move up in the organization or to expand in the organization and thirdly it's going to help me sequence my future hiring a powerful way to look at your organization if you structure it this way and and put it down visually so you can see it I hope that helps you if you've got questions on this don't hesitate to give me a to shoot them towards me I'll be glad to answer them but I hope this is something that can help you make your organization stronger and make your business more profitable and more powerful thanks for joining me today I'm rich Allen and I'll look forward to seeing you on the next profit tip