In 2013, I attended a 3-day workshop in Sydney, that promised to teach business owners how to add more organizational structure to their business.
One of the recommendations made at the workshop was to create an organizational chart that illustrates the hierarchy of roles and responsibilities in your company.
At first, I was skeptical. It looked like the kind of university textbook theory that real entrepreneurs don’t use or need.
But when I implemented it at MOBE, I couldn’t deny that it works. In this video, I explain.
HOW POWERFUL CAN A CHART REALLY BE?
I struggled to believe that creating a chart could solve the problems in my business.
However, creating this chart forces you to define the roles and responsibilities of everyone in your company. If there are people in your company who don’t have clearly defined roles and responsibilities, that’s a problem that you want to uncover as soon as possible.
In MOBE’s organizational chart, these are some of the main roles:
* Director of Operations
* Director of IT
* Sales and Marketing Director
* HR Manager
* Event Operations Manager
Each of these roles is defined by a set of outcomes. For example, the event operations manager must be watching that all flight bookings stay under budget, and getting a minimum of 3 quotes from 3 different hotels in every market.
BUILD YOUR ORGANIZATION AROUND FUNCTIONS, NOT PEOPLE
In the beginning, I built the organization of MOBE around people. I’d see that someone had a good attitude and work ethic, so I’d offer them a job. Then, whenever there was something that needed to be done, I’d instruct them to get it done.
You can get to $500,000 a year operating this way, but once you have at least 10 people, it becomes chaotic. You may know who does what, but you can’t expect them to all know who does what.
Even worse, what happens when someone leaves? If they had certain processes by which they did their job, those processes disappear as they walk out the door.
Instead, build your organization around functions. Work out what outcomes need to be produced, write out the processes for reaching those outcomes and then plug people into those processes. When they leave, you simply plug someone else in and your business does not suffer.
The MOBE Titanium Mastermind goes into more depth on this topic. Members learn how to start hiring and scale their businesses through successive revenue ceilings. To learn more about the Titanium Mastermind, click HERE.