PSC.05 (POWER OF SELF-COACHING) CHAIN OF COMMAND - DONNA KUNDE & WILLIAM EASTMAN

Can't believe we are already at Show 5 in our series on Self-Coaching. Today we cover the topic of making the Organizational Chart work - which is a formal and informal approach. I am joined by my colleague and member of the executive team Donna Kunde.

Lets take this concept forward from a formal and informal structure.

INTRODUCTION
Making your organization structure work.

OBJECTIVE

1. How do I build and effectively make my organizational structure work - both formal and informal.

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WHAT YOU NEED TO KNOW
A chain of command exists in most organizations to assure efficient and accurate communication, orderly and organized business operations, and proper allocation of time and resources. When the chain of command is used incorrectly, the entire business can suffer.

There are two types of Chain of Command - Formal and Informal. Formal chain of command is based on authority while informal chain of command is about influence. 

Formal - Building The Structure

• Function vs. Process Based
  • Offer
  • Function
  • Divisional / Lines of Business
  • Matrix
• Lines of Authority
  • Position vs Role
• Span of Control
  • Time Requirements
  • Standard Operating Procedures (SOP)
  • Work Variety
• Centralization vs Decentralization
  • Required
  • Impact
  • Risk
• Work Specialization
  • Expert vs Generalist
  • Skill Type - Conceptual, Human, Technical
• Policies & Procedures
  • Macro SOP's

Informal - Making The Structure Work

• The informal chain of command recognizes that certain people who may be low on the organizational chart as far as the formal structure is concerned, actually exercise a considerable amount of authority because of their influence.
• This happens two ways
  • When certain employees have a great deal of experience or training, and yet are not located in managerial positions.
  • During informal events like lunchtime at the organization’s cafeteria. Here, in a relaxed atmosphere, discussions among employees are encouraged and informal leaders (influencers) begin to emerge.
• As the business owner, you need to have a pulse on what your informal chain of command looks like and who is in it.
• Often, the informal chain of command dictates the organization's culture.
• Relying too heavily on the informal chain of command can "muddy the water" and lead to organizational issues. 

Organizational Issues of Bypassing the Formal Chain of Command

• An employee with a workplace concern or issue bypasses his or her direct supervisor, and addresses the issue with the boss’s boss, or someone even higher up the chain or worse yet... the informal leader who has no authority but is an easy source to "vent".
• When an owner, executive, or senior-level manager “dips down” to engage their direct report’s employees, this is also a bypassing of the chain of command, but from the opposite direction. 
• Owner’s, executives, and higher-level managers should avoid communicating with employees regarding workplace issues that the employee has not discussed with their immediate supervisor. Instead, steer the employee back to the immediate supervisor, and advise them on the proper communication protocols.

WHAT YOU NEED TO DO

1. Build Your Organizational Chart
2. Explain to the Team
3. Make It Work Formally and Informally
4. Update as Required

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