The Organization Chart

At the annual leadership retreat the frustrated CEO decries inefficiency, poor communication between departments, low engagement, and people's general disconnect from the work and the company's mission. "We need to get everyone rowing in the same direction!" But exactly what direction is that? It really should be obvious.

Most org charts share the same approach. CEO on top, C-suite next, then various department heads, and at the bottom everyone else. Top-down. The org chart represents the company's image of itself. So people pay attention to what it says about their organization and their place in it. Here's what the typical consulting company org chart says:

The entire organization exists to serve the CEO. There's no direct connection between the various administrative departments and the consultants and the mission of the business. Career success is a measure of one's proximity to the CEO and distance from consulting. People managers rule. Important people don't do consulting. To get ahead, focus on the next rung of the corporate ladder. There's no incentive to master one's craft. Consultants are not especially important.

Message received.

Org charts fuel a powerful, very human motivation - recognition. It's great to promote multiple career paths, but how can any career path compete with the route that offers more visibility, prestige and recognition than any other BY FAR.

The typical org chart makes the offer of a 'people manager' position the company's ultimate expression of recognition and reward. Hard for anyone to turn down. And who's most deserving of recognition, and therefore expects it most? Subject matter experts, project managers, etc. People at the very top of their game. People who would probably be more valuable to the business, and likely happier, if the ultimate expression of recognition kept them doing what they love and do best. Instead, the company cannibalizes the very talent it needs most. See 'Peter Principle'.

The so-called 'org chart 'makes the business less competitive, not more, because it doesn't align individual aspirations (e.g. mastering one's craft, becoming a recognized industry expert expert) with the two most critical business imperatives (the competitiveness of the business and fulfillment of the mission).

To get everyone rowing in the same direction, individual and business aspirations need to be aligned. A proper organization chart makes it clear how every person, department and leader supports the mission and the competitive front line of the business. And because the strength of the company is a direct reflection of the strengths of its individual staff, it incentivizes individual excellence at every position rather than becoming an administrator.

If you simply flip your old reporting structure over it immediately makes more sense as a legit org chart. Suddenly the consultants (aka. the business) are on top and the CEO is at the point on the bottom in charge of everything the organization does to support the consultants, i.e. the business and mission.

We created a round 'onion org chart' with clients in the center, the front line consultants a layer out, then the departments that support the consultants, and finally the C-suite and CEO on the outermost ring of support. You get the idea. A proper organization chart prioritizes the people fulfilling the company mission at the company's competitive front line, and clearly shows how the entire organization has their back.

Make your org chart work for you, not against you.

(Important addition: Around the office, an aligned culture celebrates competitive excellence, and downplays leadership promotions.)

Have a great weekend,

Dave

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