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Prove You’re Easy to Work With


Project the right image to staff as well as potential clients with this infrastructure tip from
Equilibria.

As entrepreneurs, it is tempting to make our companies “look” bigger than they actually are
through the use of multiple layers of management. But too many management layers means
longer decision making time and can actually cause you to lose business.

The non-verbal cues of your company’s organization chart send the strongest messages.
Having one that projects the wrong message is just as bad as not having one in place at all.

Believe it or not, your company’s organization chart can communicate:
 • How long it takes to make a decision,
 • Operational scope, maturity and scalability,
 • Amount of overhead (which directly affects end cost to your client), and
 • Company culture (bureaucracy vs. flat, team approach)


       What Does Your Organization Chart Say About the Way You Do Business?

I worked with a client once who had a parent company with five subsidiaries. Although only
two of the five subsidiaries were actually operational, her organization chart did not reflect
that. What it did show was a top heavy company with three layers of management. After
losing multiple sub-contractor bids ($350,000 total), she eventually learned from a prime
contractor that, on paper, her business did not “appear” to be as small as she verbalized. By
flattening her company and showing the proper balance of managers, employees, and
independent contractors she was able to convince prime contractors of her sub-contractor
eligibility.

Remember, customers (whether they are individuals, mom-and-pop, government, or large
corporations) want to know that it is easy to do business with you. I’ve heard so many
government and large, publicly-traded company Buyers indicate that part of what makes
small businesses attractive as vendors is their flexibility and ability to quickly make decisions
and adapt.

Don’t ruin your chances of getting big business by projecting the wrong image.

To Your Success,  

 
 




Alicia Butler Pierre 
Efficiency Engineer 
Equilibria, Inc.  

 
    © Copyright 2009.  Equilibria, Inc.  All Rights Reserved.  1‐888‐636‐5999.   www.eqbsystems.com 
What Does Your Company’s Organization Chart Say About the Way You Do Business?



                                 CEO                                                                                                                   CEO

                               EXECUTIVE
                                                                                                                                                    MANAGEMENT
                                 BOARD


                                                                                                             CFO/COO
 CFO             COO                                  CAO                CMO

                                                    MAIN OFFICE
                                                                                                                                                                             Account Manager            Office Manager
                                                                                                         CONSTRUCTION
                                                                                         FINANCE &                                 QUALITY                HUMAN                MARKETING &
              Architectural                                                                                & PROJECT                                                                                   ADMINISTRATION
Controller                                                            Sales Manager     ACCOUNTING                                 CONTROL              RESOURCES                SALES
               Supervisor                             LEGAL                                               MANAGEMENT
                                                    ASSURANCE
FINANCE
                                                                      COMMERCIAL
                                                                        SALES


              Construction                          TECHNOLOGY
               Supervisor                                             RESIDENTIAL
                                                                        SALES
                                                                                        - Bookkeeper                            Quality Assurance
                                                                                                                                                                                                         Receptionist
                                                                                                                                  Coordinator                            - Commercial Sales Agents*
             CONSTRUCTION                                                                                                                                                - Residential Sales Agents*
                              1st Line Supervisor
                                                                                                       - Project Coordinator                        - Payroll Clerk*
                                                                                                       - Construction Manager                       - Recruiter*
              PROPERTY                                                                                 - Architect*                                 - Benefits Consultant*
             MANAGEMENT                                                                                - Construction Crew*
                                                       BEFORE
                                            - too many layers
                                            - scattered departments                                                                                             * = Independent Contractor/Outsourced Consultant
             MAINTENANCE
               SERVICES                     - top-heavy structure
                                            - too much overhead                               AFTER
                                            - more managers than                      - flat, streamlined layers
               PROJECT                         technicians
             MANAGEMENT                                                               - cohesive business units
                                                                                      - bottom-heavy structure to
                                                                                        show more technicians
                NOTARY                                                                - effective use of
               SERVICES                                                                 independent contractors
                                                                                        and employees (reduced                                         © Copyright 2009. Equilibria, Inc. All Rights Reserved.
                                                                                        overhead)                                                                     www.eqbsystems.com
                                                                                                                                                                         1-888-636-5999

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Use Org Chart to Prove You're Easy to Work With

  • 1. Prove You’re Easy to Work With Project the right image to staff as well as potential clients with this infrastructure tip from Equilibria. As entrepreneurs, it is tempting to make our companies “look” bigger than they actually are through the use of multiple layers of management. But too many management layers means longer decision making time and can actually cause you to lose business. The non-verbal cues of your company’s organization chart send the strongest messages. Having one that projects the wrong message is just as bad as not having one in place at all. Believe it or not, your company’s organization chart can communicate: • How long it takes to make a decision, • Operational scope, maturity and scalability, • Amount of overhead (which directly affects end cost to your client), and • Company culture (bureaucracy vs. flat, team approach) What Does Your Organization Chart Say About the Way You Do Business? I worked with a client once who had a parent company with five subsidiaries. Although only two of the five subsidiaries were actually operational, her organization chart did not reflect that. What it did show was a top heavy company with three layers of management. After losing multiple sub-contractor bids ($350,000 total), she eventually learned from a prime contractor that, on paper, her business did not “appear” to be as small as she verbalized. By flattening her company and showing the proper balance of managers, employees, and independent contractors she was able to convince prime contractors of her sub-contractor eligibility. Remember, customers (whether they are individuals, mom-and-pop, government, or large corporations) want to know that it is easy to do business with you. I’ve heard so many government and large, publicly-traded company Buyers indicate that part of what makes small businesses attractive as vendors is their flexibility and ability to quickly make decisions and adapt. Don’t ruin your chances of getting big business by projecting the wrong image. To Your Success,       Alicia Butler Pierre  Efficiency Engineer  Equilibria, Inc.     © Copyright 2009.  Equilibria, Inc.  All Rights Reserved.  1‐888‐636‐5999.   www.eqbsystems.com 
  • 2. What Does Your Company’s Organization Chart Say About the Way You Do Business? CEO CEO EXECUTIVE MANAGEMENT BOARD CFO/COO CFO COO CAO CMO MAIN OFFICE Account Manager Office Manager CONSTRUCTION FINANCE & QUALITY HUMAN MARKETING & Architectural & PROJECT ADMINISTRATION Controller Sales Manager ACCOUNTING CONTROL RESOURCES SALES Supervisor LEGAL MANAGEMENT ASSURANCE FINANCE COMMERCIAL SALES Construction TECHNOLOGY Supervisor RESIDENTIAL SALES - Bookkeeper Quality Assurance Receptionist Coordinator - Commercial Sales Agents* CONSTRUCTION - Residential Sales Agents* 1st Line Supervisor - Project Coordinator - Payroll Clerk* - Construction Manager - Recruiter* PROPERTY - Architect* - Benefits Consultant* MANAGEMENT - Construction Crew* BEFORE - too many layers - scattered departments * = Independent Contractor/Outsourced Consultant MAINTENANCE SERVICES - top-heavy structure - too much overhead AFTER - more managers than - flat, streamlined layers PROJECT technicians MANAGEMENT - cohesive business units - bottom-heavy structure to show more technicians NOTARY - effective use of SERVICES independent contractors and employees (reduced © Copyright 2009. Equilibria, Inc. All Rights Reserved. overhead) www.eqbsystems.com 1-888-636-5999