Fixing Common Organization Chart Mistakes

Ah, business ownership. Yep, it’s hard not to gaze upon what you’ve built and proclaim, “home sweet home.”

Little do you suspect that the very foundation of your home, the organization chart, is about as flimsy as the paper money that’s about to go flying out of your wallet. Organization charts that are contaminated with chaos are cracks in your foundation, and cracks in your foundation can only mean one thing for your business: you’re sunk!

Just like a 90 second version of ‘This Old House’, this short slice will help you repair those hairline cracks to keep your house a home.

Click to tweet this: Build your business with a sturdy foundation. A solid org chart protects your house from collapsing from within. @DaveCrenshaw

Video transcript:

Would you build a home on a cracked foundation? What about no foundation at all?

Sounds strange, yet that’s what many business owners do when it comes to their organization chart. This serves as the foundation of their business, yet often people are committing one of these three critical errors:

First is when you see an organization chart that’s based on people, not position. We want an organization chart that shows position titles that are clearly defined. That way, it’s evergreen if people come and go from your business.

Number two is we want to have clear management responsibility. Yet often, I see everybody reporting to one manager or someone having multiple managers. This creates a lot of confusion.

And number three is when people have vague responsibilities. They just kind of float in the middle and might be doing many different things. We want to create clear boundaries. If necessary, have one person fill multiple positions.

Now my question for you is: what one improvement will you make to your organization chart today? Please answer that in the comments section below.

Also, if you have a question you’d like me to answer in a future video, ask that below as well.

Thanks for watching. Now go build a strong foundation.

Join the conversation: What one improvement will you make to your organization chart today?

I respond to every question and comment. So, please, join the conversation!


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