Do you really know your Organization Chart?

This seems like a simple question.   Everyone in the company knows your organization chart.    Who does what and the endless maze of solid lines and dotted lines.    Most companies have even gone so far as to prepare pretty PowerPoint and Visio slides that are reviewed (maybe) once a year.   But does that really describe how things are getting done in your business?

Would it surprise you to know most companies have an unofficial organization chart?  This is the true picture of how things get done.   At B2B CFO® we like to refer to this org chart as Finders, Minders, and Grinders.   Understanding it’s make up can help your company avoid the financial risks every growing company faces.

Every company’s “Unofficial Organization” chart is comprised of just three types of employees with no dotted or solid lines with confusing symbols.     They are Finders, Minders, and Grinders.    Finders are entrepreneurial and are ‘Future Thinkers’ who generate new business and build new and leveraged relationships that multiply the volumes and revenues of the business.   Minders are the managers in a business.    They typically live in the past and rely on historical information to improve future performance. They make sure work gets done efficiently.   Grinders are the employees that do the actual ‘Work’ of the company. They are the ones who build products or deliver the services.

When companies first start out typically the owner is filling all the roles.   In between the finding activities of networking and prospecting for new customers, they are doing the minding and grinding activities such as the book keeping, fulfilling orders, or providing the service.     Unfortunately as the business makes the transition from start-up to the growth phase many owners are reluctant to give up the minding and grinding activities.    As a result Finders stop finding new work and start spending most of their time doing minding and grinding activities. The entrepreneur business owner is usually the #1 Finder in their company. If this continues, the company will enter a cycle where growth declines, expenses increase and cash runs out.

We call this cycle “The Danger Zone”.   The Danger Zone is created when a company gets lost in the transition from start-up to growth phase when the cash needs of the company far exceed the available cash.   In these situations the Owner or The Finder tends to pull back further into the minding and grinding activities, because “This is my company and I can fix it”.     Unfortunately this compounds the problem and makes matters worse.

How do you avoid “The Danger Zone”?  Knowing and understanding your company’s “Unofficial Organization” is the first step.    Understand how work actually flows through your business.  This will highlight resources that are needed to enable you to follow the B2B CFO® golden rule “Let the Finders Find, the Minders Mind and Grinders Grind.

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