The Organization Chart 2

Happy Friday,

Last week, the link to this GNF presented a hurdle, so here it is.

At the annual leadership retreat, every frustrated CEO decries inefficiency, poor communication between departments, too-low engagement, and the disconnect of many from the company's mission. "We need to get everyone rowing in the same direction!" they all exclaim. But the real question is, which direction is their organization pointing?

The org chart represents the organization's official portrait of itself, so people pay attention to what it conveys about the organization and their place in it. Most org charts share the same approach: the CEO is on top, the C-suite is next, then various department heads, and at the bottom is everyone else. Top-down. So, what does a typical org chart tell the employees?

1) The purpose of the organization is to serve the CEO. 2) Administrative departments have nothing to do with the competitiveness of the business. 3) Career success is a measure of one's proximity to the CEO and their distance from consulting. 4) Important people don't do consulting. 5) People managers rule. 6) To get ahead, focus on the next rung of the corporate ladder. 7) There's no incentive to master your craft. 8) Consultants aren't important. 9) Clients and consulting are not the focus of this business.

Message... received... by everyone.

Getting a 'people manager' title is the utmost expression of recognition and reward. Forget multiple career paths; they're just symbolism over substance. No path can compete with the visibility and prestige of getting a box on the official company org chart.

That being the case, every hotshot expects to get a people manager title —subject matter experts, project managers, technical talent, etc. Organizations, of course, have no choice. So, they cannibalize the very talent they need most to compete, often with Peter Principalien's results—a double whammy.

Organization charts are simply the reporting structure, i.e., who reports to whom and who to call for info. A proper organization chart (if it existed) would depict how every person, job, department, and leader supports the organization's competitive front line and mission. In a consulting organization, that means who? ...anyone...anyone...

The consultants. (That's why it's called a consulting organization)

Try flipping your old reporting structure over, and remarkably, it makes more sense. Suddenly, the consultants (aka. the business) are on top where they belong, and the CEO occupies the bottom point, in charge of everything the organization does to support the consultants. It prioritizes the people on the company's competitive front line and clearly shows how the entire organization exists to support and maximize their success. What else?

Punchline: Your current reporting structure, aka. Org Chart is making your organization less competitive. Dump it and replace it with one that reflects the actions required to survive, compete, and fulfill the organization's mission. If you want everyone rowing in the same direction, define the direction.

(Important addition: Around the office, celebrate all forms of excellence but downplay leadership promotions.)

Dang! That's pretty good! I hope you have a happy, warm, and wonderful holiday season! From me to you, cheers!

Dave

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Written by me, not ChatGPT, with speed assist and blunder avoidance by Grammarly.