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Role Charts w/ Hotseat & Discussion

Lesson 24 from: Sparking Business Growth

Mike Michalowicz

Role Charts w/ Hotseat & Discussion

Lesson 24 from: Sparking Business Growth

Mike Michalowicz

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Lesson Info

24. Role Charts w/ Hotseat & Discussion

Lesson Info

Role Charts w/ Hotseat & Discussion

I think everyone in this room and online is gonna recognize this chart. This is most organizational charts for most small businesses Told the Hub and spoke system. It's the default protocol that most people go to it when it comes to defining the organizational structure. And I'm here to suggest, actually, it's okay to you've probably seen this, which is orig chart this what big corporations use and what we found is, Actually, there's a hybrid ways you grow your business, but when you're starting out, this is okay. This is how this system works. You are in the middle, entrepreneur. You hire someone will say Jake here, which is my son's name. You hired Jake, and, um, he's reporting to you. And when Jacob the problem, he comes to you. And when you need something done, you go to Jake. As you start growing organization, you get all these people around you and you start noticing a certain size. All you do is your answering questions and putting out fires. You sit there, Jake comes in while J...

akes in there talking to you, Lee and franker and lying just waiting for you. Then Tyrone sitting there going Gosh, I gotta cut in line, and you all you do is you can't do your own work. You're putting out fires and answering questions. That's the hub and spoke model. And I found this is actually bigger than most work around six employees. It just starts falling apart. Actually, most businesses you'll see never have more than six employees total, including the entrepreneur. So there's five plus six boy, because this mile falls apart. You can't keep it all going on your mind when there's, like 10 people, all barking commands, let alone do your own work. Therefore, when you're starting your business, if it's just you and you bring in a few employees, this is gonna work. It's a good way to get the business started by wanted to move to a different structure pretty quickly. This is the traditional work chart. This truck starts doesn't work so well, either. What this structure is is the name people and say, Here's the responsibility. So Krista, my wife's name. My family snuck in all over this. So Krista reports to me, and she tells Dave and Sue, what do you think that Christie reports to me? I just noticed that Yeah, my wife this right? And you asked crystal reports to May not really and then tells David Sue what to do and so forth. And when problem comes up, we rarely say, Oh, I got a problem in sales department. I say I got problem lease. I gotta take care of it. We build in order, chart around people's names and responsibilities. The chart we want to move toward and well designed when real quickly maybe, uh, Jason were toe do it for you. A role chart is where we have no longer people's names. This is this one. I dripped from my own business where we put the roles and the responsibilities within those roles. So instead of saying Chris has got take care of something, I say that we have a problem with our sales trending and sales trending is the responsibility of the vice president of sales. Why this is important is we don't linchpin in people to certain roles. We linchpin in the role itself and how it has to operate to that role. If we put people in, there are company starts morphing around the people and how they behave and not what the company actually needs. So when you draw the role chart we have to define, and Jason is that we're gonna do it for you shortly, we have to define all the roles we need for your company to operate perfectly and ignore the people aspect, just the roles and the task that need to be accomplished. Onley. When that's done, we have the whole thing laid out. We fill it in with people. Now, even when we have just one person, we can still do this. Ultimately, the people you're in this we kind of funny. But the person's gonna fill in all the spots is gonna be. You'll see Jason all over the place. But now, when it comes to hiring what Donna was teachings about, we'll be very clear on the traits and the roles we need to hire for the qualities we need to hire for. It's a little heavy. One explain. Just explain it just now, But let's Jason gonna try it with you. I like you. Did anyone corn up? Hey, he knows he's in for a grueling ruling. Conversation. We just had a huge sip of water off camera or vodka. Maybe that could be, But you never know. He's like, Oh, God, here we go. All right. Ignoring it, ignoring the people you've involved. Now that I know is you predominantly. But you have contractors. Those are employees. You have people. You've outsourced stuff to me to move equipment or Okay, those are employees in this grand sense. How would if how would your company be structured if it was a 50 person company doing what you dio what would use and vision? I have no idea. I'll start you out. You'd be a pretty to be a president. Someone who's running the vision. Okay, okay. And out. Interesting. I grow President. I didn't write. This would be Jason. There's someone is running the vision in there. You plan someone that does sales sales. So you have someone that runs the sales talks with customers you probably have marketing. Uh, this guy's getting good marketing. What else would you have in this corporation? I would, officer admin office admin rights. You gotta manage your equipment would be managed through them. Your facility itself? Yes. Store music. Uh, speakers and stuff. What else? 93. Because I was thinking that would be under operation Okay, So that thing is you're right. I'm Is your business clueless time? I'm right. You would not have DJs now. You're totally right. I'm the the same surveillance operations. I dont know what goes on that. Maybe there's nothing here. All right, so this is it's a question like its mystery. Yeah. This is the Unbox. Maybe technology. Okay, so that says technology obviously can't read. So under operations who? What's under operations? Uh, you've equipment? Equipment? Okay, So someone who manages the equipment equipment manager, right? Yeah. OK, well, so you have, uh, DJs premise. I would probably lump these together, but DJs yeah, yeah, we're looking at. This is a large corporation, 50 employees. A lot of people you have lots of. You have 5000 or 500. I don't know the numbers, but gigs moving through every week or every month. What else would you have in your operations? Uh, that maybe it might be an under the deejay manager. You probably have all the individual DJs down here, right? Right. Okay. Change that. We're did talent. Yeah, I e k This whole things, like getting messed up by me. You have a talent manager And then you have all the talents DJs, just DJs sees DJs. EMC's perfect. So talent manager, uh, tell me about marketing a little bit just quick. Well, I think this might be with technology. Would come in on my side is obviously online marketing. Facebook, twitter, social media. Yes, we have the social media, which is huge for you. Um, print. I tend to stay away from, But I guess maybe you could still throw collateral like business lateral collateral. So print. Okay, good. And then there'll be some people under social media, maybe, and and maybe social media is where I'd put a PR person if there'd be another box for PR. OK, but it was put there Burt bucks for PR, just okay. And we could keep building this out. What we need to do for our businesses, you, no matter what size you are. Now look at that vision. Donna talked about 10 years from now. How big would you want a company to be doing this when you have 10 people or 50 people? Whatever we draw the role chart out According to that, and then we start running tests through this now on a test to make sure that this designs proper. Okay, alright. We get a call in from and a couple of getting married and said, Hey, we heard about your services from your marketing department. We like to engage your services. Where would who would take that? Call sales. So it goes to sales sales is yet And they would sales would qualify that person. So, yes, we could do your services. They would then do what? So there's a sales guy here doing it well, in my business, sales would probably set up a meeting with the talent. OK, And when you say my business, is that the ideal way you envision your business operating? Yes, Perfect. So sales with notify talent and say, Well, when we qualified someone, they're a couple getting married. They want a deejay for the wedding. We line a schedule meeting with the right. Okay, then what would happen after the meetings? Sales would follow up with the lead. The okay, So like sales. So we have a sales after contracts air, you know, send us all your money like stuff goes over to get the money, madman. So they're the ones taking care. The money here. OK, money is collected by these guys. Okay, so that's good. So we have a PR accounts payable accounts receivable. Okay. And from there would probably move over to operations. Yep. Operations says we got the gig has been paid. This is they were booking it. Uh, well, equipment would stage the equipment for the equipment. You're gonna make sure you know everything they need from speakers, the buyer bones, toe staging. Okay, um, and then day of the event. I know. I skipped something. Dave. Event deejay would come in, pick up what's been staged to the event, set it up, down perfect. And in the event goes great and just go back to sales and follow up and say, Hey, we'll make sure phenomenal event with the guys. Yeah, sales are, well, sales, marketing, or office or office may have customer service here. Okay. So customer service, we validate. Okay, My hand is hard to read, but you understand what we did. Was we just about as we're going through the process and we did this a hyper speed, This would take a little bit longer, but as we went to this process, we identified all the roles we need filled out. We built this out after this is done. What we identifies all the roles he needs. We now would go through each role and say, What are the tasks that this role needs to be accomplished? So let's just do a couple things what tasks? And then return to quality just like we did with. And so let's just do just one person. If you had an operations manager, they would have to what? They'd have to track all events, right? What else? Uh, hire people, hire DJs. You know, we have the extra boxes. I'm kind of thrown off a little bit. Um, OK, because I would probably put in their tracking the equipment as well. But that sets this guy writes, Maybe I don't need that box a very good way. We don't, um, be honest with them. Kind of stumped up. OK, so typically, maybe they report numbers to the president and say, Here's our numbers. They do strategic planning. So they would say there's a big movement in new types of weddings like destination weddings is becoming really hot. I think there's opportunity for us to move into that. So their strategic planning. Okay, then when we hire people, we look for this one. But here's what happens at this stage. We now look at this and we say, Here's the perfect company. If we had 50 employees, but guess what? We got one major significant employee, the owner and with a couple contractors. What's the contractor's name that you've worked with? Uh, Robert. Robert. Okay. Anyone else? Kyle? Robert. Kyle. Perfect. Where do Robert Kyle go on the start? Um, honestly, they probably go in between the B another box under or before DJs and emcees. Uh, we might go and be the ones who are setting up the equipment. And then the d. J. Just shows up. So the DJs here and then there's that maybe a set up guy, right? Okay. And this is Robert. Kyle, right? Okay. They're kind of a set up in the tech for the day. Perfect. So this is perfect. And you were the d. J. In this case in this today, and you are also the president and your sales in your marketing. So if I filled out this chart, I would put now at the last step, the names of the people throwing these roles. Jason, Jason, Jason, Jason, Jason, Jason, Robert, Kyle. What? I said I'm so busy that you Jake. Now here's the funny thing. Once you define this chart now the flow of information has to comply with this. Jason's out doing a deejay job. Spinning records you don't has been records anymore. Depends on the event. Spring and Records guys. Thing on what a walk. A walk up, he spends it and always sat in the machine. The record player breaks like what Jason's been doing. Up to this point. He's like I got by a new record player. Next event under having a record player. He calls being age wherever you buy record players for money. Orders it up in this model. He actually has the responsibility, and he has to comply with this. To notify Robert. Kyle. Say a record player broke and they'll say, Okay, what should we dio you got? Tell the talent manager. Well, whose account manager? It's me. I'm the manager for now. So they say. Okay, well, your record player broken. You just told me So I was telling you back. Thank you. Then Jason's got to go to another version of self and say, Hey, operations manager, that's May our record player broke and the president have to carry about what record players. It would just be handling this section and these weird circumstances happen where you report stuff to someone who's gonna report it right back to you. But it starts the behavior, and we talked about in profit first count. How important is to get the behaviors in place. If you start behaving this way, the information flow will work. The thing is, we see stuck in that other chart of on the center of the universe. I'll just take care of it. And Robert and Kyle would never, ever know that there's a broken device and the next set up. They won't know about it. They deliver the broken device and Jason's pest saying, God, it's not working while these guys get their idiots. No, we didn't follow our own system. That's the power of the role chart. And I don't care if your one employee or your 50 employees you got a design around your optimal company. Run your processes through it and then start putting yourself in all the rules in their your part timers and contractors. And yeah, you're gonna funny moments. There's 50 Jason's all over the place, But you start complying with this. It flows through quickly. The second thing is, it comes very clear on who we need to hire where and what they need to do. That's how the world chart works. Thank you, brother. Any questions? Comments on a Debian? You had something? Um, yeah. I was just thinking that under operations was all of the hiring, Um, and and management of anyone else. Anyone else that needs to come into the organization with under operations, interviewing and and all of exactly. And none of us way. Don't spend the time doing this. We just put Jason here and Kyle and Robert, and that's it. And then we say, Well, Jason does everything in Kyle Robert has helped set up. It will work for a period of time as your business starts to grow, is going to prohibit the growth. Put this in place now. Just so you know, the flow of knowledge, it doesn't take long. We got a very simple sketch up here in 15 minutes. If we spent an hour would have the whole flow down and we can run test cases through it. And yet it's gonna be funny and weird moments of you talking to yourself. But you start employing this thing, and now it was very obvious to people to hire, even though it's 100% you are 90% you. If you take the time to write out what each job entails, then it becomes even easier to figure out where and where am I gonna bring somebody in and what are their responsibilities? A couple quick speed tips I want to share because I see little mistakes happening here really build at this chart. This is role here. Maybe the B p of sales, like the vice president sales like in a big organization. This would be. Then we hire our first sales guy on, and Little Jimmy just came off of out of college, and it's his first year, and he's our entry level sales guy. But in our roles chart, he needs to actually feel some rolls here in the vice president role. Whatever some decisions are made because he's the guy that's their one classic mistake I see small business owners make is we now call Jimmy vice president sales, and he believes it. We say, Hey, Jim, you know your new on here, that only three of us working here, You're doing a little bit of stuff. Anyway, we're gonna play the vice president sales that way you have a nice business card. You go in somewhere and you're the vice president. Sales, Jim or Jimmy starts thinking he really is the vice president of sales as a capacity. And he looks on the line goes, Wow, vice president of sales at Procter and Gamble. Make 250,000 minimum. I'm making 30,000. I'm getting ripped off and then they start complaining on the vice president Sales. You're not paying me enough name. Close. So be very, very careful, my friends, of giving lofty titles. It may feel very empowering to the employees. It's very, uh, container at the heart of your business because people have misperceptions who they are. There is another way of giving empowering titles. And there's a great example at, um uh, coming club. I think Brazil Elita is a company in Brazil and they manufacture bottles and they have this world right now. There are large corporations have thousands of employees now. But they had this role chart, and there he had line workers, and that was their title line worker. You would sit on the line, and as, ah, the bottles would come by you to apply the capper. Do whatever thing you would dio. Their challenge was they weren't very much an innovative company. The bottles were just coming through and they would do their work. But other companies were coming up with innovative bottles. Someone invented the vortex for quarters or whatever it is where the bottle of beer spins as you drink it. Some bottler invented that wasn't this company. They decided to change the title for those employees, from line workers to inventors. Now it's not a lofty title. Is this a change in title of capacity? And what was fascinating is this company within the year became the most innovative company in the bottling industry. We start to comply with the titles that are signed to us, and that we believe we are so therefore when you give, employees entitles, don't give him these lofty titles that they'll go out on the Internet repair shop price for giving titles that enable them to aspire to be what you want. You want toe some of that list prices. Have someone that's in, you know, the online, uh, online. I have not done anything to turn, but someone that's really persuasive the online persuader. Maybe you're a persuader is your title or something like that. Okay, yes. Allowing employees to give to create their own titles. Kind of like what we did with business. You know, I, like the PM, encourage people to invent titles, but again, not titles that show them as significant within the organizational structure. Essence. A significant everyone is but high in the organization chart. That's dangerous. Give him have invent tiles. By the way, Brazil Elita the crew people invented their title of inventors. It wasn't that the president came and said, You're going to be inventors They said if we were to achieve this to be the most innovative company, what would we be? And when the line worker said, we're inventors, we invent the new bottles, he said. That's your title. Yeah, to whatever division it is. As an entrepreneur, we're used to doing everything, and now we have a couple of employees. One of the things that I've always enjoyed is knowing all the info. Now a lot of it is getting reported back to through the president or whoever. Um, how do you build that into? Is it like a monthly meeting or where you get a report, sir? Great question. One of those powerful tools that small business can use is called huddles in all my own companies. And here's what Hoddle is and you can do with Second, you have a second employer contractor. You can do this. It's a daily standing meeting. Or, if you do, over the phone is a virtual meeting. But just invite people to stand sit down. Meetings seem just the role on because people get back and they're eating their drinking coffee, having a doughnut standing meetings just like the football team huddles up very powerful. And what it is is it's relevant information to the next day. We talked about quarterly planning earlier. You know what? Our vision for the quarter. But if you ever on the same page for the day, it's very powerful reasons called Hiles, because that's what football teams do. You ever watch a football game? You'll see that the football team will huddle up before the play and then they'll go on. Do it. Could you imagine if the team 11 players didn't circle up? They said, Hey, we're gonna move the ball down the field, Okay, Go like no one know what to Dio. It would be a disaster. So they huddle up before they execute the next play company should be doing the same thing at my second company, the forensic company. We have a call the 901 huddle because it nine No. One in the morning, we'll chime, go off in the office and it would ever call into a common area that was about half the size of the studio we're in now. And they would be 30 of us in there, and one person would be there was a small little stage will be up there, will be reporting numbers of the company and saying, Hey, yesterday we collected this much evidence and is now in our lab that were investigating the then we'd say anyone have problems and rain challenges we're facing. And it was amazing and how powerful this was because people would sometimes say Yeah, my computers locked up. It's not going online and this one meeting this person raise their hands in my computer, locked up and the next person raise your hand said my computer locked up. And then our I t guy who's in the meeting said, Oh, I know what it is. It's the hub back here, You both on the same hub and he went right to it. If we weren't huddling, they would call him and say, Hey, are computers down? He would run over, try to fix it. You get another call running, fix it. But because we're group with his rapid fire communication, we're getting in sync on many things. One last little tip about huddles. They gotta be rapid fire. No conversation about people just announcing our I t guy didn't jump up and say, Hey, here's how we're gonna fix it He simply said offline. What that meant was after House over, they would go on, discussed offline

Class Materials

bonus material with purchase

Client Assessment Chart.pdf
Mike Michalowicz Presentation Slides.pdf
Mike Michalowicz WSJ Articles .pdf
Process Flow.pdf
Survival Trap.pdf
Sweet Spot.pdf

Ratings and Reviews

Jason Spencer
 

I was a part of the live audience, so I had a little extra business growth behind the scenes. If you ever have a chance to attend a live broadcast, I highly encourage it. This program follows the concepts of Mike's book "The Pumpkin Plan" very closely, but it's the expanded elements that make it worth every penny. I pulled quite a few business ideas and nuggets that I still use nearly a year later. Even owning the course, I took over 17 pages of detailed notes. Gaining a solid understanding of Immutable Laws, Pruning, UPOD, and so much more helps you from day one. But it's much more than that, because you can create a system that allows you to almost grow on auto-pilot and build profit along the way (the Profit First segment was one of my favorites because I'd already been doing some of it). It you own a business, you can't go wrong with this course in your arsenal of tips and tools.

a Creativelive Student
 

Great course, learned a tons. Thanks a lot Mike & Donna. Got some great insights for my business and will implement them right away. Worth 10 times the amount of the course.

a Creativelive Student
 

I watched this class live, read Mike's The Pumpkin Plan and am now about to buy the class. I think I am pretty tough critic and I think this is a GREAT class. I highly recommend it.

Student Work

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