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The Importance Of An Organisational Chart

Many business owners underestimate how important it is to set a moment aside and consider how their business processes are going to flow. We all get so held up in the day to day running of our business that it’s the last thing we want to be thinking about. The concept around business owners running around putting out fires that our staff start, that our customers stir up and that our business advisors fuel… anything with the word “organise” in it is the last thing we want to even be thinking about.

However, forward planning is forward thinking – take a day out to consider how your business information should flow through from management down to administration, how are your sales handled? How are new customers processed? Who looks after the money? Who take care of the bookkeeping system?

Once you have thought all of that through, then you should consider – How far do I want to take my business? Will someone else be able to follow these processes? Would my business be able to continue if I wasn’t there once these processes are in place?

So where do you begin?

Start with brainstorming how your business information flows or how you would want it to flow.

Title each department, even if you’re the only personnel currently in your business, title each department as if you had a business with several departments. As your business grows it is easy to build the systems around each department later on down the track.

Then connect them together in order of how each department interrelates to each other, considering departments that have authority over others.

But don’t stop here! This stage in developing your organisational chart is just the beginning. This addresses the use of an organisational chart in that it gives other personnel clarity on how information might flow.

The next step is to break the processes down further.

Your organisational chart should be able to:

  1. Demonstrate to the employee what they are responsible for in their role and department
  2. Who they are accountable to
  3. Where items interrelate to other departments
  4. Where things can be found around the office and who to speak to if the answer isn’t clear
  5. Pathways to career development within the organisation

Check out this organisation and what they can offer in how to maximise the use and increase the clarity their organisational charts can bring to your business.

Remember, if you can get the foundations of your business correct and laid out, there is nothing to stop you developing your business to reach your goals.