What is an organisation chart?
Put simply, it is a “tree” diagram of the positions in your business – who they are, what they do and are responsible for, who they report to, and who they supervise.
Notice I said “diagram of positions” not a diagram of people. And when I say “who they are” I did not mean the names of the current incumbent, I mean their position descriptions. This is important as I explain later – an organisation chart is about organising the roles and responsibilities in your business in the most efficient way – not about who does what right now because they are the most experienced or capable.
If you want to operate a business now, or at anytime in the future, where you are not called up[on to micro-manage every decision, to supervise every person and help them make every decision, where people in your business know exactly what to do and who to go to if they need help, then you need two things:-
- A very clear vision of what everyone should be striving for; and
- An organised team where everyone knows their roles and responsibilities and know what procedures they need to follow in their tasks.
An organisation chart is the start of an organised team.