The fundamentals of an Organisation Chart

Want to reduce bottlenecks and free up time? Keen to identify resourcing gaps and improve culture? Understanding the fundamentals of an Organizational Chart and building the best structure for your business will help it be more sustainable, scalable and saleable!

There are five things which are critical to getting the best from your organisation structure:

1. Keep it visual.

Your Organisation Chart should be a clear, visual structure that shows how your team works together. Share it with your team and display it so it’s visible.

2. Know your departments.

There are 10 departments in every business. It’s essential that you understand what these are and the function of each. Understanding the function allows you to understand which department a key responsibility belongs to.

3. Know the roles.

Define every role in your business. Don’t shape a role around a person; determine the tasks and responsibilities for a role before thinking about the individuals on your team. Remember, each department can only have one leader, otherwise there is confusion for the team as to who they report to and where the accountability lies.

4. Respect the hierachy.

Determine the hierarchy and how the positions and departments interact. Respecting the hierarchy means that a leader doesn’t bypass managers to give instructions to team members and that team members report to their immediate superior.

5. Train the team.

Ensure your team understands your Organisation Chart and the protocols around it so they respect it. This training is as important for the leaders of the business as it is for the team members.

Understanding these fundamentals allows you to create an organisation structure that enables effective delegation to free up your time, identifies gaps in your resourcing, and improves your business culture.