Org Charts vs. OPS Charts

Business Unfiltered

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.

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