As a business leader, you know that an organizational chart is more than just a piece of paper outlining your company’s hierarchy. It’s the strategic foundation of your business structure and a critical component of your strategic business development plan.
But when was the last time you took a hard look at it? Is it reflective of the current state of your company, and are the right people in the right seats? Let’s dive into the power that your org chart possesses and the risks and rewards associated with it.
Complacency vs. progress
It’s easy to fall into the trap of complacency, where everything remains static because it’s comfortable. “It’s how we’ve always done it. Don has always been the head of sales.” But sales are down quarter after quarter. Does that mean Don needs more resources? Is Don no longer the ideal employee for this role? Or maybe Don would be more effective in another role.
However, it’s important to acknowledge that comfort rarely equates to effectiveness. It’s crucial to regularly assess whether each team member is positioned to deliver their maximum value (quarterly reviews are a great tool for this.) Shifting roles isn’t just about change for change’s sake—it’s about optimizing your workforce for the best of the business and fostering growth and expansion.
Method for creating the most effective organizational chart
The best way to create an organizational chart for your business is to start by creating the structure that your business needs instead of the structure that it currently has.
1. Define the core functions that are required to effectively run your business.
The core functions of your business which typically include: vision, human resources, finance, operations, IT, and marketing.
2. Define roles and responsibilities
For each core function, clarify the primary roles and the key responsibilities associated with them. This clarity is essential for devising a business growth plan template.
🧠 Key tip: focus on what needs to be done rather than who is doing it. This approach is one of the keys to success in organizational chart development.
3. Fill seats with the right people.
Identify who in your organization fits the roles based on their ability to meet the responsibilities (the “Right People in the Right Seats” concept). Ensure that each person shares the company’s core values. If you don’t have someone to fill the role, consider the gap, and explore the opportunity to hire someone when possible.
Having the right structure is the foundation (and a powerful precursor) for your organization’s success. After that, you must ensure that everyone is aligned and has access to business growth resources. To find helpful resources to help kickstart your process or get you organized, visit our content library.
Right person, right seat, right information
If you’re already leveraging Bloom for your leadership team meetings, you’ve seen firsthand the clarity and alignment it can bring. Now, consider the amplified impact of applying this methodology across your entire organization.
Risk of exclusion
One common oversight is not involving every level of your workforce in the Bloom process. New hires, interns, and junior staff might seem less critical to core operations, but excluding them from the Bloom framework means missing out on valuable insights and contributions.
Benefits of inclusion
When you integrate all employees into the Bloom system, you unlock several advantages:
- Enhanced collaboration: a clear understanding of individual roles promotes seamless teamwork.
- Increased engagement: involving employees in metrics and decision-making processes instills a sense of ownership.
- Streamlined communication: automated reminders and well-defined to-do lists ensure smooth information flow.
- Cultivated talent: providing visibility into operations prepares new hires and interns to be tomorrow’s leaders.
This level of transparency is beneficial at every level of the organization and instrumental in helping you grow your business.
Embracing change for success using an organizational chart
Your organizational chart should be a living document that evolves alongside your business. By fully embracing Bloom at every level, you create a dynamic environment where the right person in the right seat with the right information isn’t just an ideal—it’s your reality.
Incorporate these strategies into your business model, and watch as your company grows stronger, more cohesive, and ready to face the challenges ahead. Remember, your organizational chart is your blueprint for success—make sure it’s up-to-date so it can be as effective as possible.
Ready to leverage the power that your org chart has?