Org chart: Difference between revisions

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:—{{Buchstein}}, ''[[Die Schweizer Heulsuse]]''}}
:—{{Buchstein}}, ''[[Die Schweizer Heulsuse]]''}}


Because we can see [[form]] easily, we imbue it with meaning. We assume the fixed connections we draw between vertices on the matter: that they are “structural”, because we ''say'' they are.  
Because we can see [[form]] easily, we imbue it with meaning. We assume the fixed connections we draw between the vertices of our institutions ''matter'': that they ''are'' “structural”, because we ''say'' they are.  


Take the [[org chart]]: which places every person in a firm in a logical, hierarchical relationship to everyone else, can be neatly and easily controlled, and implies that these supply-lines, chains of command and communication channels are the ones that matter. But do they? aren’t
Take the org chart, which places every person in a firm in a logical, hierarchical relationship to everyone else, each one’s life force and licence ultimately emanating from the splayed fingers of the all-powerful [[CEO]]. The org chart implies that this spidery lattice of supply-lines, command-chains and communication channels are the ones that matter.  
 
===Spans and layers===


There is much management theory around the relationship of “spans” and “layers”<ref>[https://www.google.com/search?q=spans+and+layers Let me google that for you].</ref> optimal organisation charts no more than 5 layers of management; no more than 5 direct reports and so on. This, from [https://peoplepuzzles.co.uk/news/ive-got-too-many-direct-reports/#:~:text=Around%20five%20direct%20reports%20seems,really%20hold%20the%20business%20back People Puzzles], is pretty funny:
There is much management theory around the relationship of “spans” and “layers”<ref>[https://www.google.com/search?q=spans+and+layers Let me google that for you].</ref> optimal organisation charts no more than 5 layers of management; no more than 5 direct reports and so on. This, from [https://peoplepuzzles.co.uk/news/ive-got-too-many-direct-reports/#:~:text=Around%20five%20direct%20reports%20seems,really%20hold%20the%20business%20back People Puzzles], is pretty funny:
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<small>{{quote|'''How many is too many?''' <br>Around five direct reports seems to be the optimum number, according to Mark and Alison, although there are some scenarios where up to nine can work.<br>When it comes to the senior team in a company, however, too many people reporting directly to the owner manager can really hold the business back. Alison recalls working with someone who had 13 people reporting directly to her. “She had to do 13 [[Performance appraisal|appraisals]] at the end of every year!” she says. “It simply wasn’t an effective use of her time.”}}</small>
<small>{{quote|'''How many is too many?''' <br>Around five direct reports seems to be the optimum number, according to Mark and Alison, although there are some scenarios where up to nine can work.<br>When it comes to the senior team in a company, however, too many people reporting directly to the owner manager can really hold the business back. Alison recalls working with someone who had 13 people reporting directly to her. “She had to do 13 [[Performance appraisal|appraisals]] at the end of every year!” she says. “It simply wasn’t an effective use of her time.”}}</small>


Witness the formalist disposition, when the most significant thing you can do is carry out a formal process. The ethos is this: ''look after the form and the substance will look after itself''. Take care of the pennies and the pounds look after themselves. But this is to look after the pounds and assume the pennies will take care of themselves.
Witness the formalist disposition, when the most significant thing you can do is carry out a formal process. The ethos is this: ''look after the form and the substance will look after itself''. Take care of the pennies and the pounds look after themselves. But this is to look after the pounds, hoping the pennies will take care of themselves. Well, of ''course'' they do: that’s what pennies do: they need no licence from the boss for that.


In any case, you can’t encode mandatory small teams ''and'' a flat structure. There is a mathematical relationship between them: the smaller the average team, the more management layers there must be.
In any case, you can’t encode mandatory small teams ''and'' a flat structure. There is a mathematical relationship between them: the smaller the average team, the more management layers there must be.


And besides, this is to miss [[The map and the territory|the map for the territory]]. An organisation chart is a static map of the firm configured in the abstract, in theory, ''before it does anything''.  This is how the machine functions when it is idling. [[Org chart]]s are the plan you have ''before you get punched in the mouth''.  
===The map and the territory===
Formal reporting lines are often the most sclerotic, rusty and ''resented'' interaction channels in the organisation. Communications up and down them — usually reluctant, strained, for the sake of it, to fulfil formal, not substantive, requirements for order — are at best ''reactive'' to commercial imperatives, and derivative of them: the firm’s real business is done only when its gears are engaged, and that means its personnel communicate with those who are ''not'' in their immediate hierarchy. The business unit is a cog: what matters is what happens when it is engaged.
And besides, this is to miss [[The map and the territory|the map for the territory]]. An organogram is a static map of the firm configured in the abstract, in theory, ''before it does anything''.  This is how the machine functions ''when it is idling''. [[Org chart]]s are the plan you have ''before you get punched in the mouth''.  
 
Formal reporting lines are usually the most sclerotic, rusty and ''resented'' interaction channels in the organisation. They are the “keep off the grass” signs; vain attempts to coerce inferior modes of communication at the expense of better ones — if they were the best lines of communication, you wouldn’t need to call them “reporting lines”. Communications up and down them — usually reluctant, strained, for the sake of it, to fulfil formal, not substantive, requirements for order — are at best ''reactive'' to [[Commercial imperative|commercial imperatives]], and derivative of them: the firm’s real business is done only when its gears are engaged, and that means its personnel communicate with those who are ''not'' in their immediate hierarchy. The business unit is a cog: what matters is what happens ''when it is engaged''.


But as the complicatedness of our organisations has grown we have developed more and more internal “engines” which engage not with the outside world, but with each other, generating their own heat, noise and movement — frictions and vibrations which wear out the parts and fatigue the machinery — and which are lost as entropic energy. Of course, one needs legal, compliance and internal audit, but when those departments have their own operational infrastructure and, are themselves monitored and audited, the drift from optimal efficiency is pretty plain. Internal audit departments now periodically audit themselves. But who audits ''that'' function? [[Elephants and turtles|Turtles]] ahoy: we approach an infinite regression.  
But as the complicatedness of our organisations has grown we have developed more and more internal “engines” which engage not with the outside world, but with each other, generating their own heat, noise and movement — frictions and vibrations which wear out the parts and fatigue the machinery — and which are lost as entropic energy. Of course, of course: one must have [[legal]], [[compliance]] and [[internal audit]], but when those departments have their own operational infrastructure and are themselves monitored and audited, the drift from optimal efficiency is plain. [[Internal audit]] must periodically audit ''itself''. But who audits ''that'' function? [[Elephants and turtles|Turtles]] ahoy: we approach an infinite regression.  


You can understand the wish to focus on reporting lines — [[formal]] organisational structure — because it can be easily ''seen''. It is is [[legible]]. It is measurable. [[Audit|Auditable]]. It is tempting, especially for people at the top of the structure, to attribute business success to the formal structure they preside over.
Management focuses on reporting lines — [[formal]] organisational structure — because it can ''see'' them. They are [[legible]]. They are measurable. [[Audit|Auditable]]. There are spans and layers, which you can count and optimise. In this way can the fellow at the top attribute business success to the formal structure she presides over.


But it misses the organisation’s ''real'' arterial network: ''lateral'' interactions that ''cross'' the organisation’s internal and external boundaries: these are the communications that employees ''must'' make, whether or not they are recorded — communications between internal specialists in different departments and with the firm’s clients and external suppliers — to make commerce happen and move the organisation along. It is ''in'' these interactions that things happen: it is here that tensions manifest themselves, problems emerge and opportunities arise, and here that these things are resolved. These are not [[Drills and holes|the drill, but the hole in the wall]].
But the organisation’s resting state overlooks its ''real'' arterial network: ''lateral'' interactions that must ''cross'' whatever boundaries management can dream up, or that leave the firm altogether: these are the communications that employees ''must'' make: between internal specialists in different departments; with the firm’s clients and external suppliers — they make commerce happen and move the organisation along. It is ''in'' these interactions that things happen: it is here that tensions manifest themselves, problems emerge and opportunities arise, and here that these things are resolved. These are not [[Drills and holes|the drill, but the hole in the wall]].


These are ''[[informal]]'' interactions. They are not well-documented, nor from above, well-understood. They are hard to see. They are il[[legible]]. Yet, everyone who has worked in a large organisation knows that there are a small number of key people, usually not occupying formally significant roles — they are too busy getting things done for that — who keep the whole place running. These “super-nodes” know histories, have networks, intuitively understand how the organisation really works, what you have to do and who you have to speak to to get things done. These are the [[ad hoc]] mechanics who keep the the superstructure on the road.
These are ''[[informal]]'' interactions. They are not well-documented, nor from above, well-understood. They are hard to see. They are il[[legible]]. Yet, everyone who has worked in a large organisation knows that there are a small number of key people, usually not occupying formally significant roles — they are too busy getting things done for that — who keep the whole place running. These “super-nodes” know histories, have networks, intuitively understand how the organisation really works, what you have to do and who you have to speak to to get things done. These are the [[ad hoc]] mechanics who keep the the superstructure on the road.
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Likely management won’t have the first clue who these “super-nodes” are, precisely because they do not derive their significance from their ''formal'' characteristics, but from their ''in''formal ''function''.  
Likely management won’t have the first clue who these “super-nodes” are, precisely because they do not derive their significance from their ''formal'' characteristics, but from their ''in''formal ''function''.  


They are the informal hubs of a multiple hub-and-spoke network. They earn their authority not from their formal position, nor their formal grading, but their informal reputation, earned daily, interaction by interaction.
They are the informal hubs of a multiple hub-and-spoke network. They earn their authority not from their formal status, nor their formal grading, but their informal reputation, earned daily, interaction by interaction.


A map of interactions is not a top-down, God’s-eye view. It disregards the artificial cascade of formal authority in favour of informal credibility. It reveals the organisation as a point-to-point multi-nodal network, is a far richer organisation than that revealed by the org chart. This is how the firm actually works, and and inevitably the formal organisation will frustrate it.  
A map of interactions is not a top-down, God’s-eye view. It disregards the artificial cascade of formal authority in favour of informal credibility. It reveals the organisation as a point-to-point multi-nodal network, is a far richer organisation than that revealed by the org chart. This is how the firm actually works, and and inevitably the formal organisation will frustrate it.