Org Charts vs. OPS Charts
June 11, 2024
Welcome back to Business Unfiltered with Mercer and Jeff Sauer today's topic is Org Charts vs. OPS Charts
0:00: Org charts vs ops charts for small businesses. Mercer and Jeff define "org chart" and "ops chart" on the podcast. Jeff explains that their business will operate under an "ops chart" instead of an "org chart" or "accountability chart". Jeff and Mercer organize the company around 3 key functions: offers, products, and systems.
3:48: Organizational charts, their limitations, and a new approach called "accountability chart." Jeff discusses the limitations of traditional org charts, which are rooted in military hierarchy. The traditional org chart has too many roles for small companies, making it impossible to implement.
9:33: Limitations of org charts and accountability charts in small businesses. Jeff argues that the structure is overkill for small businesses, as it leads to high overhead costs and offers limited scalability. Small businesses need nimble, quick actions, not bureaucratic tools.
14:13: Evolving organizational structures for business growth. Jeff discusses the limitations of traditional org charts and suggests alternative approaches, such as using contractors instead of employees. He suggests using a hybrid approach with a strategist, manager/architect, and tactical resources for efficient execution.
19:17: Using "ops chart" to manage organizations, with a focus on its benefits and how it can be used to measure performance. Mercer describes an "ops chart" as a tool for organizing and managing an organization's functions, useful for performance measurement and feedback.
22:35: Creating a new organizational structure for a company with three main areas (offers, products, and systems) and various roles within each area. Mercer describes a three-headed structure for the company, with three main areas: offers, products, and systems. He envisions a chart with these three main areas across the top, with strategy, management, and tactical areas within each one.
26:50: Implementing a new organizational structure using a matrix system. The hosts are testing new approaches and will continue sharing insights with the audience.
Topics Covered In This Episode
- Definitions and Preferences: Mercer and Jeff define "org chart" and "ops chart," with Jeff preferring an "ops chart" for their business over traditional org or accountability charts, organizing the company around offers, products, and systems.
- Limitations of Traditional Org Charts: Traditional org charts are rooted in the military hierarchy, making them less effective for small businesses that require fluid roles and quick actions. An accountability chart offers an alternative but still has limitations, such as a lack of specific titles and hierarchy complexity.
- Nimble Organizational Structures: The hosts highlight the need for small businesses to avoid bureaucratic tools and instead focus on nimble, quick actions. They question the effectiveness of a five-person executive team structure and argue that it's overkill for small businesses.
- Alternative Approaches: Mercer and Jeff discuss the potential of minimizing organizational structures for business growth, considering options like contractors and process-based management. They suggest a hybrid approach with roles like strategist, manager/architect, and tactical resources for efficient execution.
- Benefits of Ops Charts: They describe the "ops chart" as a versatile tool for organizing and managing an organization's functions, useful for performance measurement and feedback. It offers a practical alternative to traditional org charts, especially for small businesses.
- Three-Headed Structure and Matrix System: Finally they explore implementing a new organizational structure with three main areas (offers, products, and systems). They suggest the matrix system for assessing capabilities and functions, with managers and architects playing key roles in strategy and communication.