Playbook: An org chart that actually works

Hi folks!

I’ve got one more playbook for you — a classic, actually, about a tool that reduces confusion and increases efficiency:

Programming note! I’ve been sending out playbooks every Tuesday since the beginning of July — it’s been fun, and hopefully it’s helped people. 

So starting on Saturday, we’re going to try changing up this newsletter for bit — a little looser, a little more personal… I think you’ll like it. Stay tuned!

(And don’t worry, you’ll still be able to browse all the playbooks here.) 

What is an accountability chart?

Lots of people think an accountability chart is just an org chart, with names and titles.

And don’t get me wrong — this is a good start. 

But it doesn’t tell you what the “Finance Admin Manager” actually does. It leaves a TON of room for confusion and inefficiency.

It may seem small, but the wasted time, energy, and resources add up fast. 

Enter: the accountability chart.

An accountability chart clearly defines roles, responsibilities, and ownership. It lets everyone in the company understand what needs to be done and who is responsible for doing it.

Now, everyone knows who does what. (It also helps identify when something is falling through the cracks.) 

Giving employees ownership like this helps your employees feel trusted and empowered — and you’ll see an uptick in morale and a downtick in turnover. 

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I’m inspired by the Traction method — check out the book to learn all about it!

Step 1: Define the basic company structure.

Don’t start with the people you have. Start with the core functions of the business.

Most businesses have 3-5 core functions e.g. Sales/Marketing, Client/Customer Services, Finance/Admin.

Then there’s an integrator — they’re supposed to make sure all the core functions are working together towards a common goal and vision. (Some people separate this from the CEO, who is theoretically only focused on the vision… but that tends to disconnect from reality too quickly for my taste.)

Then define a single role that is responsible for each core function. List the major duties the function leader is responsible for, aiming for 3 to 5 bullets per seat. 

Don’t fill in anyone’s names at this point — just the name of the function.

You’ll end up with something like this, with just the “Functions” filled in:

Step 2: Fill in the chart’s “Roles”.

Each core leader should define the functions for their area. Focus on the three to five main roles for each function. 

Again: don’t build a chart that reflects your company today. 

Create the most efficient structure you can. 

Don’t worry about creating more roles than the people you have available — a person can sit in more than one “seat”. And don’t worry about creating fewer seats than you have people. That’s an issue to resolve later.

Step 3: Define every function and responsibility within the company.

Continue the same process the rest of the way down your company structure.

Remember that each “seat” or “function” is not a job title, but an action, e.g. “supervise customer service” or “manage client operations”.

Then fill out the roles, using plain, concrete language that everyone can understand, e.g. “oversee payment of all outstanding bills”, “compile financial reports”, or “compare invoices with purchase orders”.

Step 4: Assign your team to each function.

One person can do more than one function. But each function can only have one person accountable.

You may not have all the right people for the roles defined. This is OK; it shows you where the gaps are.

And you might find some people are a better fit for a different role than where they are today.

Step 5: Define expectations and targets for each role.

Each role gets a target number that ties into the weekly/monthly/quarterly company goals. This helps everyone to understand how their contribution impacts the success of the company.

For each goal or target, assign a timeline.

Step 6: Roll out the accountability chart to employees.

To get your employees’ buy-in, communicate clearly and be consistent.

Explain why everyone’s functions and responsibilities need to be defined. Make it clear that the new accountability chart is a clarification and not a reorganization.

Remember to emphasize that the chart centers around “functions, roles, and responsibilities” and not “egos” or “titles.”

Step 7: Review and adapt.

Review the accountability chart regularly, and discuss it during each quarterly employee review. 

Questions to consider:

If you’re not seeing improvement, you might not have the right butts in the right seats. 

If you are, congratulations!

What tips do you have? I’d love to hear them.

Thanks for reading,

Michael

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