2.9-operations
0.9-you

Organizational Strategy Guidelines

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Organizational Strategy Guidelines

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Here is a suggested organizational structure for an independent builder. Look at how the responsibilities are grouped, and how the accountabilities flow through the structure. Note also that there are no names for the positions. Right now, you should be most interested in determining what tasks have to be done to deliver on your promise, your UVP (Unique Value Proposition).


A sample organization chart for a construction company


How it is going to feel at the start



Build YOUR organization chart

Now, outline the structure you desire when visualizing your company and what your company is going to be responsible for delivering to your market. You can start your organization chart from scratch or modify my example.
You can either draw the chart freehand, or use a piece of software (Word or Excel). Add this sheet to your FOUNDATION binder.
(If you wish more training on setting up your organization, including sample Position Descriptions for each position shown in the chart, please take a look at the in-depth treatment here.)


Rules for constructing an organization chart

1. Any one position should not have direct control of more than five subordinate positions.
2. Create a separate position for each major function or task.
3. Do not make two positions accountable for the same task (if more than one position is accountable, nobody is accountable).
4. Do not have a superior reporting to a subordinate who reports to the superior (i.e. You run a job which reports to a project manager who reports to a VP-Production who reports to you).
5. You can, of course, report to yourself.


Position Descriptions

The only way you can turn over any position to an employee and make sure that the work is performed the way you want is to document the responsibilities and accountabilities of the position. You do that with a Position Description - a document that addresses all of the important facts about the position. You will find a sample of a Position Description here.


The GOAL of building an organization

Your goal is to work yourself out of each position until you are filling only the CEO box, and perhaps only the Board Chairperson position. We take a much more focused look at how to do that in other courses in the Builder Academy.
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