From the Ask Tom mailbag –

Question:
I was in your Time Span presentation about Elliott Jaques and Managerial Relationships. I recently discovered that our perceived organization chart is quite different that the one I had or felt was in place. I had all of my managers draw their view of our Org Chart so I can get a better grip on the disconnect. What is the best way to create the most accurate Org Chart and most importantly, implement it?

Response:
Interesting that Elliott faced this same dilemma. He described these various versions of the Org Chart this way –

• Manifest Org Chart – this is the published version
• Assumed Org Chart – this is the version that different people assume, as many versions as you have people. This is the version you received from your managers.
• Extant Org Chart – the way the Org Chart actually works, based on observations and interviews. This would include all the dysfunction, vagaries, dotted lines, stupid rules, end arounds and general mayhem.
• Requisite Org Chart – the design of managerial relationships based on Requisite principles.

When we put Org Charts together, we think the central question is “who reports to whom?” This is a sucker punch question that leads us astray. It is not a matter of “who reports to whom?” but a matter of “which manager is accountable for the output of which team or team member?”

A manager is that person in the organization held accountable for the output of their team. So, when I examine any role, it’s not a matter of who that role should report to. When I examine the role, it’s a matter of which manager is accountable for the output of this role.

This subtle shift is a game-changer. The Organization Chart is a visual depiction of managerial accountability, not “who reports to whom?”

But your question is how best to create this visual depiction. Ultimately, all crumbs lead to the top. I hold the CEO accountable for the design of the work. But the detail of this design is best hashed out in a series of meetings considering these questions –

• What is the work to be done, tasks to be completed?”
• What is the Level of Work?
• What role is best to complete the tasks?
• Which manager is accountable for the completion of those tasks (output)?

Very interesting questions.