As your company grows, notice when there’s confusion. Confusion about who is responsible for certain tasks or areas of responsibility. If you step away for a period of time, notice if your team is confused about who to report to or who can answer their questions in your absence. Notice when you’re overwhelmed with questions, things are falling through the cracks, and you can’t keep up. Consider that you may be the bottleneck.
The good news is there are tools that will help you to lead your company’s growth rather than it leading you. Your team’s confusion may be a sign that you’re missing important tools that will proactively scale your business.
That tool is your organizational structure. And, specifically, your organizational chart. There is a distinction between your organizational structure and chart. Organizational structure is traditionally designed around business functions (e.g., sales, marketing, finance, human resources, etc.), defines the key performance indicators for the function, and defines authority, responsibility, and accountability. Whereas, an organizational chart is built around people and titles.
These tools are more than an exercise to complete in a business course. When used consistently, they are the pathway to fulfill on your scaled business. They not only identify your current structure to support your operations, but your organizational structure and chart:
1. Creates Organizational Alignment.
Organizational Structures and Charts serve as a visual representation of how each role aligns with the company’s Contribution in the World, Vision, Mission, and Values. According to a study by Deloitte, 80 percent of Millennials say they would be more committed at work if they felt their employer made a positive impact on society. Showing your team how their work is aligned with the company’s Contribution in the World is a way to keep team members engaged knowing they are a part of something bigger.
2. Identifies Career Progression Opportunities.
Your team members will want to know the opportunities that are available for them. Their career progression may not necessarily mean a different title, but they are interested in knowing how they can acquire new skills, abilities, and opportunities to take the lead.
3. Identifies a Strategic Pathway.
Having related structures empower you to proactively identify the revenue benchmarks that must be met to add new talent, identify the type of talent needed for your next level, and when/where to create efficiencies (e.g., adding automation, expanding roles, etc.) as the business grows.
Successful leaders understand that organizational structure and charts are value-added tools that serve as a visual representation of your support and should list employees, independent contractors, and volunteers. They should also illustrate the future you’re living into.
If you’re inspired to design a pathway to scale your business, join us for the Wake Up Profitable Boot Camp for Business Owners on April 29-30, 2021. With our hybrid learning platform, you can join us online or onsite.