Creating an Organization Chart for a Small Business 2.0 - a Case Study

The Story of
Albert Andoh
ORGANIZATIONAL
DESIGN
for
SMALL
BUSINESSES
2.0

Meet Albert Andoh
Albert is a:
• Software developer
• Participant in a tech incubator
• Founder of 3-year-old company that
provides middleware
© Copyright 2019. Alicia Butler Pierre. BehindTheFacadeBook.com

His tech company has grown fast…

…and is expected to grow even faster
once he speaks at the SXSW Conference.

He already has investors courting
him...

THIS IS EXCITING NEWS, RIGHT?

WELL, YES…AND NO.

The investors are most concerned about
Albert’s capability of running a company.

Although Albert and his company
looks “big” on his website…

He’s only 16-years-old!

While the investors worry about
putting the growth of a company into
the hands of a teenager…

…his parents worry about his education.

The investors asked for a 3-Year Strategic
Growth Plan before they invest.

At the SXSW Conference, Albert’s
mother meets a consultant.

Victoria is a project management
consultant.

Albert’s parents explain
their son’s dilemma.

Victoria warns of the fast growth
predicament.
CauseCause
Cause

She warns Albert of being good at
development, but not the business of
development.

Time is of the essence. Albert has
to present his Strategic Growth Plan
in a month to the investors.

So, what can he do about this?

Victoria suggests creating organizational
charts to show growth projections

Victoria explains that the solution
for proof of both capacity and
capability lies in building a business
infrastructure

KasennuTM
There’s a specific methodology she’s
learned for implementing business
infrastructure.

KasennuTM
Specifically, they need to create a
Business Design BlueprintTM (BDB)

What is Organizational Design?
The manner in which management achieves the
right combination of differentiation and
integration of the organization’s operations, in
response to the level of uncertainty in its
external environment.

What is an Organizational Chart?
Visual representation of how a firm intends
authority, responsibility, and information to flow
within its formal organizational structure.

KasennuTM
Similarly, a BDB…

Identifies what the
management or
reporting
structure is
KasennuTM
Business Design BlueprintTM

So, they set out to create a
BDB…

First, they took info from an existing
org chart
OriginalillustrationbyMilenaVitorovic

This would help them figure out how and
where to assign previously determined
tasks and roles.

Albert’s uncle gasped as he saw him
create a “pyramid” structure

Victoria explained the importance of
projecting a lean, agile structure,
especially as a small business.

Victoria also noticed that Albert placed
himself as the CEO.

She asked Albert if he spoke the
language of business.

She explained that Accounting is the
language of business and that all CEOs
must speak this language fluently.

This is often why so many emerging tech
companies find themselves at the mercy
of their investors. They have the skills of
an entrepreneur (startup), but not
necessarily of an executive (enterprise).

Albert understood and admitted he
only wanted to code...for now.

So, he made himself in charge of the
developers and his uncle, who has years
of large enterprise experience, as the
CEO. This shows maturity on his part.
CEO
MANAGEMENT
Director of
Development

They created a 1-year and 3-year
organizational chart that aligned with the
Strategic Growth Plan

A new, flat and line organizational
structure emerged…
Line organization
Flat organization

It also showed…
Unity of Command Span of Control
As Director of Development, Albert
will only manage the activities of
the testers, programmers and
product owners. Anything more
would be too much.
Business Development Manager
is only person that the Sales Reps
report to.

Albert was now in a position to focus on
what he’s really good at, knowing that:
He has a plan to hire:
the right people,
in the right order,
for the right position.

His BDB aligns with his
strategic growth plan

Opportunities for promotion
are evident and customer
support is not offshored

He could still be involved
with his company and even
attend college

Now, Albert feels confident the
investors will give the funding!

The only thing missing are business
processes.

Albert would need the investor’s
funding for this work.

But will the investors approve his
Strategic Growth Plan and funding?

Find out here

Here’s a Recap of What Albert & Victoria
Did…
Drew all departments (see Job Task Analysis case study
2.0) as boxes across a page horizontally.
Placed names of upper management roles above the
departments.
Placed names of other staff roles underneath the
departments.
Distinguished type of staff (i.e. contractor, employee,
vendor).
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Illustration Credits
• Group of people silhouette: Getty Images
• Presentation: https://www.0grados.com/capacitacion-detonante/
• School graduation background: https://www.pptgrounds.com/educational/5983-school-graduation-backgrounds
• Organizational chart icons: https://thenounproject.com/term/organizational-chart/
• Capacity vs. Capability diagram: https://www.businessprocessincubator.com/content/ability-capability-capacity-
and-competence/
• Strategic alignment model: https://slidemodel.com/templates/strategic-alignment-powerpoint-slides/
Alicia Butler Pierre. BehindTheFacadeBook.com

Creating an Organization Chart for a Small Business 2.0 - a Case Study

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Creating an Organization Chart for a Small Business 2.0 - a Case Study