The Most Underrated Growth Hack in Small Business: The Org Chart

Let's talk about something that might make you roll your eyes: org charts. I get it. When most small business owners hear "organizational chart," they picture some stuffy corporate diagram gathering dust in a boardroom. But here's the thing: when used strategically, an org chart becomes your secret weapon for increasing profits, creating rock-solid accountability, and building the business you actually want to run.

Today, I'm going to show you exactly how to use org charts to transform your business operations, align your team with profit-sharing that actually works, and create a strategic plan that moves the needle. Plus, I'll walk you through my proven 5-step process for building an org chart that fits your business like a glove.

Ready? Let's dive in!

Why Your Small Business Needs an Org Chart (Even If You're a Team of One)

Most entrepreneurs think org charts are for "big companies." Wrong! Even if you're flying solo, mapping out your business structure is crucial for growth. Here's why: when everything lives in your head, nothing scales.

An effective org chart serves three critical functions in your business:

• Clarity: Everyone (including you) knows exactly who's responsible for what
• Accountability: No more "I thought you were handling that" moments
• Strategic Vision: You can see exactly where your business is going and what roles you'll need to get there

Think of your org chart as your business blueprint. You wouldn't build a house without architectural plans, so why would you build a business without a clear structure?

The Power of Profit Sharing: Making Everyone Think Like an Owner

Let's start with something that gets everyone excited: money. But not just any money... profit sharing that actually motivates your team to work like owners.

Why Profit Sharing Works Like Magic

When your employees have skin in the game, everything changes. Studies consistently show that profit-sharing leads to increased effort, better collaboration, and a genuine sense of shared purpose^1. It's not just about the extra cash; it's about feeling valued and invested in the company's success.

Here's what happens when you get profit sharing right: your team starts looking for ways to increase revenue and cut waste without you asking. They begin solving problems instead of creating them. They care about customer satisfaction because it directly impacts their own bottom line.

Using Your Org Chart to Structure Fair Profit Sharing

Your org chart isn't just a pretty diagram. It's the foundation for creating a profit-sharing system that actually works. Here's how we do it at Cavalry Appliance Service:

 We use a Tiered Sharing System, which means we create different profit-sharing levels based on roles and responsibilities. More accountability equals more reward: it's that simple.

In our Cavalry Appliance Ultimate Org Chart, we have four levels: Front Line Team Members, Managers, Directors and Owners/Executives (which are actually two levels, but we combine them for profit share purposes). Once our taxes are totally done for the previous year, any team member who has been with us for that particular FULL year, is eligible for profit share.  Here's our formula from there:

Total Profit is divided as follows: 25% Profit Share Pool, 25% Debt Reduction, 25% Savings (Rainy Day Fund) and 25% Growth/Reinvestment.

So, we take the total profit x 0.25 and that is what we have to distribute to the team.

Next, we divide up that amount as follows:

Here's what that looks like in real life using our Cavalry Appliance Team (with $10,000 profit as an example):

4 Owner/Executive Seats: 10000x0.3= $3000, divided by 4= $750 each

3 Director Seats: 10000x0.2= $2000, divided by 3= $ $667 each

4 Manager Seats: 10000x0.2= $2000, divided by 4= $500 each

5 Front Line Team Members: 10000x0.1= $1000, divided by 5= $200 each

Remember, that some people fill more than one "seat" on the org chart, so they earn the profit share for each seat they occupy.

The beauty of this is that you can structure it however you think for your company- but this should get your ideas flowing!

Creating Accountability That Actually Sticks

Here's a truth bomb: if everyone's responsible for everything, no one's responsible for anything.  Your org chart is your accountability secret weapon.

The Psychology Behind Role Clarity

People with clearly defined roles are 53% more efficient^2. They experience less stress, higher job satisfaction, and stay with companies longer. Why? Because uncertainty is exhausting. When your team knows exactly what they own, they can focus their energy on excelling instead of guessing.

We've all heard the expression "if it's everyone's responsibility, it's no one's responsibility."  But, in business ownership, when things don't get done because no one understand that it's their task to own, it falls on the actual owner(s) which leads us all to burnout, frustration and, frankly, sadness.  We wonder why people aren't doing what they're supposed to do, we're always cleaning up messes, and we're spending precious family time putting out fires.  I promise there is a better way.

The EOS Accountability Chart Approach

Instead of just listing job titles, part of the Outcome Academy Ultimate Org Chart structure is based on what Gino Wickman calls an "Accountability Chart"³ in his EOS system. This shows:

• What each role is specifically responsible for
• Who owns each core business function
• Clear measurable outcomes for every position (we bold these under each role).

Michael Gerber shares a perfect example in The E-Myth⁴ about two friends running a chaotic bakery business... until they created an org chart with real ownership assignments. Suddenly, tasks stopped falling through the cracks because someone was clearly accountable for each outcome.

Strategic Planning: Building Today for the Business You Want Tomorrow

Your org chart isn't just about where you are now; it's about where you're going. Even if you're currently a one-person operation, your org chart should reflect your future vision.  We empower every member of our team by putting "This is your leadership pathway!" at the top of our Ultimate Org Chart.  This way, everyone knows that if something at a higher level appeals to them, they are eligible to work towards that seat.  And, as business owners, our own end goal should be to fill all the seats beneath us so that we can enjoy the amazing business we built! 

In John Warrillow's book "Built to Sell"^5: he urges us business owners to stop trying to be everything to everyone and instead focus on his "Trifecta of Scale," working to make our businesses "teachable, valuable, and repeatable." The goal isn't necessarily to sell your business... it's to build systems and processes that let your business thrive without you constantly being involved. When you create a company that runs like a well-oiled machine instead of depending on your daily presence, you suddenly have options: keep running it stress-free, bring in partners, or yes, sell it for maximum value. 

The E-Myth Method for Strategic Org Charts

Here's how Michael Gerber⁴ suggests approaching this: design your business as if it were a franchise. List every role needed for the business to run without you. Initially, your name might be in every box, but that's your roadmap for delegation and growth.

I like to think of every seat on our small business as a position that would represent an entire department in a huge corporation. Marketing...Sales...HR...Finance...what else comes to your mind?  Each business has its own nuances, but most of our ultimate org chart should be a solid foundation for you to begin with; make it your own!

The EOS Vision Approach³

Start with your long-term goals, then build an org chart that supports your strategy. Every major goal (or "Rock" in EOS terminology) should have a clear owner on your chart.

Using Org Charts in Your Planning Sessions

Make your org chart a living document in your strategic planning:

• Assign quarterly targets to each role
• Review progress by position, not just by person
• Ensure every employee's work aligns with your company mission

For example, if you're planning to launch an online store, add "E-Commerce Manager" to your future org chart now. If your current manager is drowning in both sales and marketing responsibilities, split those into two distinct roles—preparing for your next strategic hire.

My 5-Step Process for Building Your Perfect Org Chart

Alright, let's get practical! Here's my proven method for creating an org chart that actually works for your business:

Step 1: Start with the Ultimate Org Chart Framework

Begin by examining a comprehensive org chart template (like the one we provide in Outcome Academy). List all the positions that make sense for your company, placing them across the top of a spreadsheet. Hint: We've got a free template at the end of this blog! Work from left to right, and don't hesitate to modify position titles to match your business needs.

Step 2: Brain Dump Your To-Do Items

(This will be very familiar to anyone who has been in one of my strategy sessions at a conference or enrolled in the Strategic Business Intensive)

For each position you've identified, create a comprehensive list of tasks and responsibilities. Set a two-minute timer for each position and write down everything that comes to mind... no filtering, just brain dump style. This rapid-fire approach often reveals tasks you'd forgotten about or responsibilities that have been floating unassigned. (We got you started in the template by adding some core responsibilities for each one!) Don't forget all the things rolling around in your mind right now (your "to-do" list) and get it out of your head and onto the list!

Step 3: Time to "Do it, Delegate it, or Delete it!"

Identify Your Sweet Spot (Highlight in Yellow)

Now, go through each list and identify the items you absolutely LOVE doing AND are already good at. These are your zone-of-genius activities: the work that energizes you while leveraging your natural strengths. Highlight these in yellow.

Spot Your Energy Drains (Highlight in Pink)

Next, identify the tasks you genuinely HATE doing, regardless of whether you're good at them or not. These energy-draining activities should be highlighted in pink. Life's too short to spend your time on work that makes you miserable.

Find Your Learning Opportunities (Highlight in Orange)

Look for items you might enjoy but would need to develop new skills to handle effectively. Ask yourself: Is someone else on your current team naturally gifted at these tasks or already skilled in these areas? If so, highlight these in orange. They're perfect delegation opportunities...or you can (1) push them until later when you have had time to explore the new skill or (2) hire someone who is already good at it! (Another book recommendation: "Who, Not How" by by Dan Sullivan and Dr. Benjamin Hardy).

Eliminate the Non-Needle-Movers (Cross Out and Delay)

Finally, identify any items that seemed important when you wrote them down but don't actually move the needle in your business. Draw a line through these and move them to your project management system with a due date at least three months out. They're not priorities right now.

Step 4: Fill Your Org Chart Strategically

Now use this assessment to populate your org chart intelligently:

1. Place your name in positions where you have yellow-highlighted tasks (your zone of genius)
2. Assign team members to roles where they naturally excel ("right people in right seats" is another Gino Wickman principle in Traction³).
3. Delegate all pink and orange items to others, but only after critically examining whether they're worth pursuing at all.

***Here's an important note.  It's OK to delegate a responsibility in a seat you own to someone else.  For example:  If you are filling the Marketing Manager Seat, you can hire a VA to do the ghost writing for your blogs.  Owning that seat means you are responsibile for ensuring the 3-5 main responsibilities are done, not that you have to do every single task yourself!***

Step 5: Make Your Org Chart a Living, Breathing Tool

Your org chart isn't a "set it and forget it" document. It should evolve with your business. Here's how to keep it relevant and powerful:

Review Quarterly: Schedule regular org chart reviews to assess what's working and what needs adjustment. Your business changes, and your structure should too.

Tie Everything Together: Connect your profit-sharing structure, accountability measures, and strategic goals directly to your org chart positions.

Communicate Clearly: Make sure everyone understands not just their role, but how their role contributes to the bigger picture.

Here are your Action Steps to go From Overwhelmed to Organized:

Click the links below to download the tools that go with these steps!

1. Start Simple: Create your first Outcome Academy Ultimate Org Chart, even if you're the only employee. List all current roles (think departments in a huge corporation) in your business.  Do the "brain dump" for each one and then move to step 2.
2. Define Roles Clearly: Using the lists from step one, go back to the Ultimate Org Chart Template and list 3-5 main responsibilities for each seat (that all the tasks fall under) and one or two specific, measurable, Key Performance Indicators (KPIs), bolding the KPIs.
3. Plan Forward: Use your Ultimate Org Chart to visualize your growth trajectory.
4. Share the Vision: Help your team understand how their success connects to company success and implement profit sharing to eligible team members (when you're ready!).

Remember, you don't have to figure this out alone. Building effective business systems takes time, practice, and sometimes a fresh perspective.

Creating an org chart that drives real results isn't just about drawing boxes and lines. It's about designing a business that works for you instead of against you. When you get the structure right, everything else starts falling into place: clearer communication, better accountability, more strategic thinking, and yes, improved profits.

Your business has incredible potential. Sometimes you just need the right framework to unlock it.

Want help implementing these strategies in your business? Let's work together to create systems that actually work. Book a private coaching session and let's turn your vision into reality!

Talk soon, Ginny

PS:  Want more free resources to help your business grow?  Visit our freebie page at: https://www.outcomeacademy.com/freebies!

Sources:

1. Bryson, Alex. "Profit Sharing Boosts Employee Productivity and Satisfaction." Harvard Business Review, December 13, 2016. https://hbr.org/2016/12/profit-sharing-boosts-employee-productivity-and-satisfaction.
2. SLP Australia. "What Is Role Clarity." Sales Leadership Performance, www.saleslp.com/resources/what-is-role-clarity. 
3. Wickman, Gino. Traction: Get a Grip on Your Business. Dallas: BenBella Books, 2011.
4. Gerber, Michael E. The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It. New York: HarperBusiness, 2001
5. McCullen, Aidan. "EP 91: Creating a Business That Can Thrive Without You 'Built to Sell' author John Warrillow." YouTube, uploaded by The Innovation Show with Aidan McCullen, https://www.youtube.com/watch?v=MjBQDOMeq9U.