Organizational Structure

February 16, 2010

As a company grows, the general manager must create the necessary infrastructure for the company to be successful.

Charting Your Course

If you don’t have one already, define the organizational chart required for your company to succeed at the current level as well as the next. It should be defined by roles, not by people. So, for the moment, set a side thoughts about the people currently in your company and describe the organizational structure required for optimal execution of the company. The organizational chart should consist of job titles, not peoples names.

Filling in the blanks

Once completed, you can then add the names, parenthetically under the titles. By the way, it is OK if a name appears in one location. If it is yours, you are simply coming to grips with the fact that you are serving multiple functions, which will then make it easier to define and delegate. But, if it is someone else’s make sure that it is clear that they are serving multiple roles. How much time should they spend on each? What are their respective goals?

Take this job and describe it

Next, create job descriptions for each role in the organization. What are the responsibilities for each job? What are the goals and metrics for each? If they don’t exist, consider having your employees write one for them. It might be interesting to find out what they think that they are responsible for and how they will be judged as successful. Ultimately, get the manager and employee to sign-off on the job description. That’s much better than simply inheriting responsibility and assuming that the employee understands it.

For more information and ideas, check out Chapter 14, Your Organizational Strategy, of The E-Myth, Revisited.