Most companies organize around personalities rather than around functions.

That is, around people rather than accountabilities or responsibilities.

The result is almost always chaos.

-Michael Gerber, The E-Myth Revisited

One of the exercises we ask business owners to participate in at our Seminars involves drawing their organization chart. The result of this exercise is fascinating.

Some people just pick up their pens and within a few seconds, they've drawn out a neat, structured hierarchy of boxes and positions. Everybody has a place and a part to play.

But some people become panic-stricken: you can literally see the sweat form on their brows! Why? Because they've just realized that they don't have clearly defined roles within their company. Their organizational chart looks more like a spider web: a mess of lines, boxes, job titles and names. Everything overlaps. It's confused.

This is usually the point when the business owner recognizes the fact that it's their name in most of the boxes; that essentially they're doing most of the work!

If this is you, don't worry — you can work your way out of it. Keep in mind that your organization chart is an essential, central and critical piece of documentation in your business. If it's been a while, perhaps now is the time to revisit your chart and take a strategic look at your organizational structure.

What is the Organization Chart Supposed to Do?

Your organization chart is like the grand schematic of your business.

• It's the visual representation of your strategy.
• It's the chart of the systems in your business, stated in terms of the results they obtain.
• It's the picture of an organism that is working in concert for a common objective.
• It clarifies the broad accountabilities of every position in your company and their interrelationship.

Remember, if your business is to thrive, you need to find other people to do the tactical work so your time is free to do the strategic work. Your organization chart is the means through which that crucial transition can be made.

Four Tips To Creating Your Organization Chart

1. There is no box on the chart labeled "Owner." If you are an owner, you need to occupy one or more boxes on the chart and play by the same rules you would have for any other employee.
2. Every position on the chart reports to one (and only one) manager. Giving two or more managers the power to direct the activities of one employee is an invitation to miscommunication and chaos.
3. Make sure you divide up the work according to what the business needs. Don't try to design a position to fit the particular talents of one individual. If (when) that person leaves, you'll have to start all over with a new chart because you won't be able to find a replacement.
4. Instead of using titles, designate positions in terms of the results they will obtain.

Keep an Eye on the Future

Once you have a working organization chart, the next step is to figure out how that chart is going to serve the future of the business. We refer to this as Double Vision: keeping in mind how the present is going to serve the future. As you build your business toward your Strategic Objective, think about how your organization chart needs to morph and evolve in order to serve that vision.

Now take a few minutes to draw your organization chart (keeping in mind our four tips). What does this exercise tell you about your business? What did you learn? Tell us about it!

Have you ever found yourself cursing your employees? "If only they weren't so *insert expletive here* stupid! I tell them to do X, and they do Y. I tell them to do 50, and they only do 10."

People problems are the #1 frustration in nearly every business I've worked with. Over the years, I've worked with business owners from just about every industry, and I've heard nearly every single one of them say: "If only I could clone myself!"

Really? Do you really want a clone of yourself working at your business?

What my clients often don't realize is that Entrepreneurs make terrible Technicians. And if they ever did actually manage to clone themselves, they would have another, equally talented competitor open up in their area!

Getting Employees to Do What You Want

The real issue is: how to get your employees to do what you want them to do. And how do you get them to do it right the first time? Isn't that what every business owner really wants? Technicians who do not just what you tell them to do, but they do exactly what you want them to do. And they do it the way you want it done. So how do you do that? How do you get your employees to do what you want them to do?

You can't.

You can't get people to do anything!

Heck, it's hard enough to get yourself to do anything, let alone get someone else to do it. (Don't believe me? Ever try sticking to a diet? Or what about that New Year's resolution?)

Systems Dependent, Not People Dependent

But you have to do something! So what do you do? If you can't get your people to do anything, how do you get anything done?

Simple: Your business should be systems-dependent, not people-dependent.

The systems run the business, the people run the systems. With the effective implementation of the right systems, you can get results through your people. Every time.

The trick is to create an environment in your business where "doing it" is more important than not doing it. You have to create an environment where "doing it" is a way of life for your employees, and simultaneously, you have to create an environment in which the idea behind the work is more important than the work itself.

Do you understand that very simple concept? It's not the work that's important. What's important is the concept that drives the work in the first place.

It's Not About the Means, it's About the Results

People don't walk into a hardware store because they need a shovel; they walk into a hardware store because they need a hole in the ground.

People don't buy coffee because they want a cup of coffee; they buy coffee because they want a tasty pick-me-up.

People don't go to the hospital because they want to see a doctor; they go to the hospital because they want to be healed.

It's not about the means, it's about the results. The idea behind the work your employees do is more important than the work itself, and you have to make sure your employees understand that and live that every day.

A Simple System to Start the Process

Here's a simple tool you can use to begin the process of developing just such an environment. It's a system called the Employee Development Meeting. It's a meeting that your managers hold every week with each employee who reports to them. It's a one-on-one, face-to-face meeting, scheduled in advance, and it's everyone's #1 priority.

The Employee Development Meeting (or EDM as we like to call it) is a short, 30-minute meeting that the manager schedules with each employee. The manager sets out an agenda for each meeting, and uses the meeting as a forum for discussing issues, problem-solving, conflict resolution, and planning. It's a chance to discuss and follow up on the work the employee has been doing, prioritize goals, make agreements about work to be accomplished, discuss exceptions, exchange information, and clarify results. The EDM is an opportunity to help keep your employees on track.

It's also a huge time-saver. Having a problem with employees bugging you all the time? Do they continuously come to you and ask: "What do I do now?" "Is this right?" Simply ask them if it could wait until their EDM. Nine times out of ten, the problem can wait.

Most importantly, the EDM is a medium to help every single person in your business confront and overcome obstacles. The EDM will help everyone be at their best.

But you don't have to take my word for it. Quantify how well your systems are running right now. Measure how many "people" problems pop up each month, each week, each day. Then implement the EDM for a month, and run the numbers again. I bet you'll be pleasantly surprised by the results.

If you can implement the EDM in your business it will become the backbone of your management system, and it will make all of the other systems in your business work more effectively. The effectively implemented EDM will help you create a highly motivating, productive environment in your business. In time, instead of cursing your employees, you'll be praising them.

On October 16 and 17, E-Myth is offering a Management Intensive Seminar that will teach you how to build a sensible systems strategy plan with our universal business development model. You will also learn about our most popular management tool, the Key Frustrations Process, a tool to help you turn common frustrations into opportunities.

For most of us, our business is separated from our home life. If we have a bad day, we go home and vent to our loved ones, maybe get a little sympathy and then move on. But what if your family and your business are one in the same? What if you can't vent at home because the person you vent to is your business partner?

Business can be challenging; but a family business--well that can take "challenging" to a whole new level. A lifetime of shared experiences creates a complicated history even for the most "functional" of business partners. And let's face it; nobody knows just how to push our hot buttons like family! It's easy for family members to get bogged down in inter-personal and communication breakdowns issues that can seriously get in the way of business.

So how do you rise above the family landmines and focus on business? Here are three tips from E-Myth Business Coaches.

1. Business is Business

Much of the strife in family business occurs because the lines between personal and professional become blurred. Keep in mind that your business is a separate entity. As much as your business means to you, it is not an extension of the family.

E-Myth Tip: Don't discuss business after 6 pm. Yes, it's that simple. This is going to be a serious challenge for some of you, but it's really important as you separate your family life from your business life to set some strict guidelines. Remember, business is business. Don't take it home with you!

2. Clearly Define your Roles

Whether they're CEO, CIO or CSC (Chief Stock Clerk), family members fulfill roles in a company just like any other employee. Each family member must have clear accountabilities for their role(s) in the company. To be successful, and to fulfill your Strategic Objective, the company must get specific results from every employee--including your family.

E-Myth Tip: Every employee should report to one manager. In family businesses, managerial responsibilities are often blurred because roles aren't clearly defined and sometimes spouses or family members occupy the same place on the organization chart.

Keeping with the family analogy, think of managing like raising a child. If you tell a child one thing, and your spouse tells them another, how does the child know what they are supposed to do? Mixed messages lead to trouble. The same thing goes for an employee, and it's especially important when the employee is reporting into a family situation. It's vital to have a clear management structure so your employees know exactly who they report to and what's expected of them.

3. Communication is Key

From an E-Myth Business Coach:

I worked with a husband and wife team who, on the surface, seemed to work pretty well together. Each had their own strengths and weaknesses; and they were both actively involved in the business. Outside of work they did a good job of carving out time to be together and they enjoyed their free time, but their problem came as soon as they set foot in the office. The minute they got to work, they stopped communicating! This isn't an unusual thing for a family business; I've seen it time and time again. The key is to recognize that there's a breakdown in communication and to take the steps to open that communication channel. For this couple, the big shift came with the implementation of a regularly-scheduled management meeting. A meeting not between husband and wife, but between two managers...

E-Myth Tip: Create a structure for communication. Set a weekly management meeting with a clear agenda and action items. If you've created and communicated the businesses' Strategic Objective, and each member of your management team (and family) has clearly defined roles and accountabilities, they should walk away with simple and results-oriented "To-Do Lists."

Further Reading

Beating the Perils of Partnerships: How to form a more perfect union

Exit Strategy - Don't Tax Your Family