The Gaping Hole in Your Org Chart!

Sometime around 1854, David McCallum, general superintendent of the New York and Erie Railroad, created what most recognize as the first organizational chart of American business.

You might say that the pace and complexity of business has changed a bit since then. In the 1850s, there were no cars, planes, radios, TVs, or electric light bulbs. They had coffee and tea, but no Starbucks.

Somehow, the org chart has managed to survive—pretty much intact—through dramatic changes in our world. In the 1850s, businesses were insular command-and-control organizations. Today, companies routinely employ and service individuals all over the globe, using technologies that connect us instantly, but that also allow disruptive competitors to threaten at any moment.

The really, really big problem...

This may sound counterintuitive at first, but the dramatic flaw in your org chart is that it doesn’t include anyone from outside your organization.

Let’s assume for a moment that you are the CEO on top of this marvelous, neatly organized chart. Everyone below you works for you, which means that technically you can fire anyone at any time. Due to this stark reality, people have a tendency to tell you what you want to hear.

The same is true for your executives on the first or second level of your chart: the people underneath them also want to please them.

Meanwhile... your customers, investors, and partners may be thinking, “What’s wrong with (insert your company’s name)? Why aren’t they more responsive? Don’t they see the flaws in their (service/quality/speed/innovation)?”

The honest answer to questions like these is probably: NO, we don’t.

The reason you don’t see all these weak spots is that everyone on your org chart works for you.

A far better solution…

Your org chart needs to include people you can’t possibly hire or fire. These might include a few of your best customers, or the most talented engineer from another industry, or a product designer whose sense of style is globally recognized.

Such people won’t help you for ten years running, but many will agree to serve on an advisory board for perhaps six months, especially if you expose them to other highly talented, forward-thinking professionals.

In my most recent book, Co-Create, I wrote about the wisdom of uniting with others to co-create your future. The world is simply too complex, I argued, for anyone—including the largest companies—to go it alone.

But this thinking needs to penetrate to the very core of your company, and that means especially your org chart. If it lacks a way to include “outsiders” in your strategic decisions, then you are likely to misread market shifts and altogether miss exciting new opportunities.

Since each industry and organization has its own unique aspects, I don’t like to prescribe one single way to accomplish this. But bringing the outside in is critically important if you wish to remain competitive.

David Nour helps leaders connect with their teams by using the right strategy, pictures, and words. His tenth book is Co-Create: How Your Business Will Profit from Innovative and Strategic Collaboration. He is also a popular speaker.