Designing an Organizational Strategy is the process of creating what is referred to as the “org chart.” It’s important early in the development of a company because as the business grows it helps guide the growth in the right ways. Even though there is really only myself operating the business at the moment I’ll create an org chart with all the positions that I want to have in the business when it is fully developed. As I am the only person with responsibility to the company right now, I will be in all of those positions.
As HalOtis grows and eventually needs to hire on staff, I can move out of positions, and assign the responsibilities to someone else. Having predetermined what each position is responsible for will define the new person’s role within the company, and there will be less stepping on toes.
Here’s how I think the company should be organized.
Notice that I am indeed the only person in the company at the moment holding all the positions. In addition to the titles to all of these positions, it’s important to know the roles and responsibilities as well.
An extension to the the org chart is to know the responsibilities in more detail.
CEO – Answers to shareholders, accountable for the success/failure of the business, the public figure of the company.
Marketing/Sales – Tasked to find customers and find ways to satisfy them and keep them. Research to find ways to direct the products, and what features would sell. Make and follow-up on sales, and maintain customer relationships.
CTO – Make technical decisions to meet the goals of the company determined by the CEO. Manage the programmers meet the promises made by Marketing.
CFO – Support Marketing and CTO by allocating the financial resources. Determine when loans are needed, and secure them. Responsible for ensuring profitability, filing taxes, and tracking accounts payable and receivable.
Legal – Ensure that the company is in good legal standing, manage patents of novel ideas, copyrights, and trademarks.
Human Resources – Manage the paperwork for hiring/firing people, benefits and payroll, and deal with internal personnel complaints.
The book E-Myth recommends writing up position contracts for each of these positions and having the employees sign them. I’m going to skip that suggestion and instead rely on a corporate wiki. In my next post I’ll go into detail how a wiki can help with corporate organization.