Bite size chunk #3
Systems and Structures:
A company or an organization will often become stuck or experience a lot of miscommunication and balls getting dropped when there isn’t clear accountability established.
As an organization grows, complexity increases. Take a simple two-point relationship where the two points represent the number of employees, number of product lines, or number of offices within an organization. Notice what happens when you grow 50%, represented by adding another point. The interrelationships dramatically increase from two to six or by a factor of 300%. The complexity increases even more dramatically as you add another point, representing just an additional 25% growth, jumping from six to 24 calculated by multiplying 4 times 3 times 2 times 1. This 25% growth actually increased complexity by 400%. Therefore, simply doubling from 2 points to 4 points increases complexity by a whopping 1200%.
Increases in complexity lead to stress, miscommunications, increases in costly errors, poor customers service and greater overall costs. There is a need for appropriate systems and structures.
The answer is an accountability chart. If you can conceive a position, put someone’s name in it. Even if his or her only accountability is to make sure the position is filled. To make your accountability chart:
1. List the Roles or key positions in your company and list who is accountable for each position.
2. List key measures for each position (how do you measure performance?).
3. Take your profit/Loss and balance/Sheet and assign line items to the person.
Your goal: Identify more than 1 person per key position or no person per key position.
If you need help in implementation, being the only certified coach in central/south Texas, I am at your service!
These are bite size chunks from the book Mastering the Rockefeller Habits, click the link to purchase the book.