Create an organizational strategy
based on functions
by Kelly Schwedland
What does your company need to look like to give you the life you want?
We last talked about your strategic objective and the point was that you need to have a clear picture of what your business will look like when it is fully operational.
The next step in this process is your organizational strategy. What we used to refer to as your organization chart. This time, instead of putting the people in your organization on the chart, put all the functions that need to get accomplished on it. If you start organizing around the people or personalities in the business, the result will always be chaos.
I’m talking about all the functions that need to occur in any business. Actually map out the president, the finance, the operations and the marketing. Beneath marketing, you have the advertising research, sales, etc. Beneath finance you have accounts receivable, accounts payable and manager of information systems. Beneath operations you have the production manager, service manager, facilities manager, etc. Write every function required to operate your business on the chart. Don’t forget jobs like receiving, shipping, cook, cleaning, reception and clerical. If it’s a job that needs to get done, then put it on the chart.
Now comes the fun part. Place the name of the person responsible for each function in each box. Now the partners are having a problem because they each want their name in the box marked president. Only one please. It is not that input from everyone isn’t important. But a shared presidency is lunatic asylum.
Your name is on many boxes
If you own your own business, as you do this exercise, you will find your name in many of the boxes. No wonder it takes so many hours each week to get it all done. The point of all this is to realize all the functions that need to occur in order for your business to work smoothly. You need to focus on them and understand how every one of them has to happen today.
The next step is to focus on the result. If there isn’t a required result for each function then it doesn’t need to be there. Then you must document each required result. Create a position contract for that function. Then have the person responsible sign it. Now you have accountability.
So at this point what you want to do is document the process for that function. Focus on just one function at a time or this could get too complicated in a hurry. Create a system or step by step procedure for how that function is to be accomplished. Because, you know that is the best way of doing it today. Combine that with your required result. Voila! You now have a way of truly delegating responsibility in your organization, not simply abdicating and hoping it all works out. Now! Delegate that function and move on. Once you finish at the operating level, just keep going on into the management functions.
So, let’s briefly review what we accomplished today, Three very important things. We created an organizational strategy with all the functions, their required results, and how to delegate for that result. Next time we will look at what it takes to actually create the management systems in your business in pursuit of giving you the freedom you want in your business.
Kelly Schwedland is president of American Business Dynamics, a small business consulting firm focused on issues related to growing companies.