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

This case study highlights a real-life small business' challenge in communicating management structure and the specific actions taken to create a lean business design based on the pre-defined departments of the company. This case study is the second in a series of 7. Visit my profile to view the others.

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

  1. 1. 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 Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)
  2. 2. What is an Organizational Chart? Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978) Visual representation of how a firm intends authority, responsibility, and information to flow within its formal organizational structure
  3. 3. Business Design BlueprintTM Our Version of Organizational Design and Chart Identifies what the management or reporting structure is Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)
  4. 4. The Problem With no defined reporting structure or chain of command in place, this was sure to raise yet another red flag on Victor’s medical practice’s upcoming audit (see Business Parts Analysis—Case Study). The lack of a documented structure proved that a formal plan did not exist. This raises a red flag for auditors who believe this compromises the quality of service. The lack of organizational design indicated that work is performed willy nilly. Unknown Reporting Structure Previous Audit Citations Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)
  5. 5. We carefully reviewed and analyzed Victor’s business plan to understand the growth strategy of his medical practice. We transcribed his verbal goals, coupled with the results of their Business Parts Analysis, and designed a reporting structure that clearly and visually communicates: • What work needs to be performed • How work is allocated amongst staff • Who needs to be hired • Relationships amongst all personnel resources Business Plan & Growth Strategy Alignment Visual Documentation How We Helped BEFORE Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)
  6. 6. New Organizational Chart with Lean Design AFTER LEGEND RED : Employees/Contractors Needed Blue : Independent Contractors Black : Current Employees CEO/CAO Advisory Board Accounting & Finance Accounting Team • Bookkeeper • CPA MANAGEMENT Administrative Administrative Team • Receptionist • LT. Consultant Clinical Clinical Team • LMHPs • MHPs • CSWs Human Resources Human Resources Team • HR Coordinator • Small Business Attorney Marketing Director Quality Assurance Quality Assurance Team • Quality Assurance Coordinator CFO Medical Directors/Psychiatrists Clinical Managers Administrator Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)
  7. 7. Value & Results Employee Accountability Employee Autonomy CEO’s Time for Business Development Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)
  8. 8. Victor’s Business Design BlueprintTM enabled him to: • Pass his audit with zero citations • Maximize his relationship with his I.T. Consultant as he could now better articulate his practice’s technology needs • Free up ~45% of his time for business development by hiring a new CPA, bookkeeper, and H.R. Coordinator to handle all payroll, invoicing, and other accounting related activities • Create conflict resolution buffers—with a defined chain of command in place, other managers can handle most client and staff issues Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)
  9. 9. Learn More Here Top-heavy Management Bureaucracy The Peter Principle This case study represents one portion of KasennuTM, our revolutionary model for creating sustainable business infrastructure in fast growing small businesses. Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)
  10. 10. Contact Us for more information. www.eqbsystems.com Questions? Copyright © 2007—2016. Equilibria, Inc. This case study is based on actual facts and data. In our efforts to uphold client confidentiality, we disguise and sometimes eliminate revealing data. The Business Design BlueprintTM and the charts shown in this case study are property of Equilibria, Inc. and is intended for educational purposes only. Reproduction and distribution for-profit is prohibited. Equilibria, Inc. +1 (404-964-2978)

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