Tips for Entrepreneurs

Organization charts are a waste of time

By September 8, 2009 No Comments

organization chart

Organization charts are a waste of time; particularly for SMBs (small to medium businesses). OK, maybe not a complete waste of time. But they are not as useful as they should be.

It’s vitally important in small companies ($2m-$50m in revenue with 10 to 250 employees) that everyone knows who is accountable for what. Whether there is a customer service problem or there is no toilet paper in the facility you don’t want your employees guessing who owns the problem.

Some responsibilities are clear  – sales for example. But some aren’t.

Who decides whether to fund a major new project? The CFO (if one exists) or the owner or both? Who owns managing the outsourced website design team? The marketing director or the engineering manager? Who decides what commission rates to pay? The VP of Sales or the CFO or the Owner; or two of the three; or all three?

How much time gets wasted because of this knowledge gap?

How many goals don’t get accomplished on time because no one is driving?

At EOS Worldwide we believe there should be only one owner for all major responsibilities and that everyone should understand who owns what. After all, if everyone is responsible then no one is responsible. We call this an accountability chart.

Do you use something like this in your company? Tell us about it.

If not, you should try an accountability chart, you might like it.

Photo: toprankonlinemarketing

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