Venturn Get your Organisation chart right.

This is arguably one the most important things to get right in any business, and getting the Organisation chart right isn’t always just about the individual people, so don’t make the mistake of thinking that managing your organisation chart is just about hiring and firing.

The organisation chart is a tool that used to communicate how teams, peer managers and other departments work together. It’s often used to define each person’s roles and responsibility.  It also defines where accountability lies.  Unfortunately, too many organisations don't get the organisation structure right. In our experience, you need to make sure that people understand their roles & responsibilities. Also, everyone needs to understand the difference between Accountability and Responsibility as this is the key to unlocking the potential in any organisation. Ignoring these and letting problems in your team remain unchecked, perpetuates underperformance.

We have developed and perfected our own tools to assess the effectiveness of organisations.  We call it the RACI tool.  Our experience shows that gaps and issues in organisation charts overlay perfectly with issues and underperformance in business processes and departments.  Here are our definitions that we use within RACI.

• R = Responsible, the person who does the job
• A = Accountable, the person who makes sure that the job gets done, and only one person can be held accountable for a business process.
• C = Consulted, people who can give key information
• I = Informed, people who need to know what's happening

Every organisation needs to constantly review itself, and ensure that people know what's expected from them.

Further reading

• Why a quick fix is not the answer
• Common causes of business failure
• Key elements of a smart business turnaround

Stephen Moon, Venturn Ltd. April 2010

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