Title - Use an organisational chart and position contracts to plan for growth Tags - organisationalchart businessgrowth businesssystems

An organisational chart describes the roles and responsibilities of everyone who will operate the business when it has achieved the organisational strategy: 202206031041.

To create an organisational chart:

  1. Decide how many employees you will need and what each one will do (the role).

  2. For each role, write a position contract explaining who the employee will report to, what work has to be done and by what standards their work will be judged.

  3. Divide the roles between the owners so all responsibilities are fulfilled immediately

  4. Fulfill the position contracts, discover what works, and document the best approaches as systems to be operated by future employees

  5. Gradually hire employees to fulfil each of the roles so the owners aren’t required to operate the business

See how the organisational chart fits into the big picture of a franchise prototype here: 202206041127

[#gerber2001emyth]: Michael E. Gerber (2001): The E-Myth Revisited: Why Most Small Businesses Don’t Work and What to Do About It, HarperBus.