Why Businesses Need Roles

Published August 26 2008 11:29 AM | Aaron Stannard

In the course of our conversation about growing a business without growing pains, I’ve raised two central topics: processes and roles. I’ve already beaten all of you over the head with article after article on processes so far this month, but if you want a refresher please read “Why Businesses Need Processes.”

I have not talked about the purpose of roles in much detail thus far, so that’s what we’re going to talk about today.

The Need for Roles

Let me put a hypothetical question out there as a preface:

“If my business consists of only myself, do I still need roles in my organization?”

The answer: every organization that intends to grow needs roles. If you do not plan to grow your business beyond being a one-person organization, then you probably do not need roles; however, if you have any intention of growing your business, then roles are a must.

The Dual Purpose of Roles

Most people think of “roles” as job descriptions and responsibilities. This is the human resources half of roles—roles are a means to apportion and assign responsibility for different parts of an organization’s operations. Roles are formally declared in a job description and published in an organization chart in order to allow everyone in an organization to know who is responsible for what.

This capacity of roles (and org charts) is so well understood that the point is almost taken for granted; most employers dutifully roll out job descriptions and update them as job functions evolve. Employers who don’t have a formal method for defining their employees' job functions do not last long.

The second purpose of roles—the one that is less understood—is that roles are a blueprint for the expansion of human resources within your organization. This is why the one-man organization needs roles: because properly defined roles help those employers make better decisions about whom to hire and what sort of candidates to look for.

Over the next two weeks, we’re going to take a closer look at roles and some of the best practices for implementing them. Feel free to leave comments!

If you liked this post, make sure you subscribe to our RSS feed or follow us on Twitter.



Comments

# Liz said on September 2, 2008 3:19 PM:

In the situation where one does not expect to expand beyond one person in their business, I do not think your statement that they don't need roles is correct.  You see, when there is only one person, then that person is responsible for every "role" in business. The roles and functions exist whether there is one or a thousand and one people in the business. By clearly defining each role and all functions, even in a one person business, you are putting order into what could otherwise be a confusion of roles and functions. With the roles and functions clearly defined, then that one person knows for example when he is handling the mail that he is "in the role" of the Mail Handler and what functions he has to perform, when he's answering incoming calls then he's "in the role" of the receptionist etc.  If you don't do that, then it's just a jumble and confusion of roles and functions and with the lack of order you are cutting across the possibilities for any expansion and growth - even with just a one person business!

# Peter said on September 2, 2008 4:56 PM:

I do believe every business requires an organizational chart - no matter the size or growth targets.

I have found these charts to be helpful when communicating business ideas to staff within an organisational structure, particularly when roles are vague and undetermined due to poor HR planning.

In my experiences, small and medium businesses often fall victim to 'dual purpose roles' in an attempt to be flexible. However, as these businesses increase market share or turnover, 'shared roles' often get no review, especially when business owners do the bulk of the "important" work.

Business owners usually make themselves the center of every business process and often get overburdened as growth/change happens. These owners often become attached to their positions and fail to see the benefit of restructuring their own roles.

There are two necessities when drafting an organizational chart... 1) Always attach a 'list of responsibilities' behind each role... 2) Map your processes no matter how small. Processes may include invoicing, bookkeeping, mail handling, etc.

Below is an example of an organizational chart I've developed for the company I work in...

www.sitesmartaustralia.com.au/.../ourteam.html

(Go to the bottom and click on the "Business Model")

# TrevorS689 said on September 2, 2008 11:31 PM:

We all have multiple roles in our personal lives.  For me they read like this:  Husband, Father, Grandfather, Brother, Uncle, etc.  

In the interest of self improvement I have to review the responsibilities of each role and ask myself "how can I do this better".  What can I do that will transform me from average to outstanding in each role?

It's not such a stretch to think sole traders or business oweners with their name repeated nine times on the Org Chart should become intimately aquainted with all of those roles and associated responsibilities.  If they don't, not only will the business not expand if that's the goal, but it won't improve either.  Surely every business should aim for better quality products, better customer relationships, better sales processes whether they intend to remain the same size or not.

Trevor

# Aaron Stannard said on September 3, 2008 8:52 AM:

I read through all of the comments (and even Peter's flowchart) and I perhaps I was mistaken. I said that a single person organization with no intention to grow probably didn't need defined roles, but Liz makes a good case to the contrary. The ordering and prioritizing of activities is still necessary for a 1-man organization and an org chart is one of the best tools for accomplishing just that.

Thanks for the insightful comments - I appreciate them!

# Jeryl said on September 4, 2008 7:17 AM:

one person business, doesn't need "roles", you are going to have an org chart with just one bubble?

# Aaron Stannard said on September 4, 2008 8:57 AM:

Jeryl,

I strongly recommend reading Paul's earlier article on the subject, where he uses our company (SmartDraw) as an example: blog.smartdraw.com/.../why-the-organization-chart-is-not-obsolete.aspx

The point is that the number of boxes on an org chart DOES NOT equal the number of people in the organization. It should equal the number of roles that have to be filled in order to successfully run the business. Here is why you should do this:

1. It helps you encapsulate responsibilities into individual roles which can be filled later on by new hires

2. It helps you prioritize and order activities by role; if you're a one-person consulting firm, what's the most important role you have to fill first? Based on my experience as an web developer/consultant I'd say it's recruiting and, later on, maintaining clients.

# The SmartDraw Blog said on August 3, 2010 5:34 PM:

In my previous article on why businesses need roles , I mentioned that you use roles primarily as an

# The SmartDraw Blog said on August 3, 2010 5:35 PM:

In my previous article on why businesses need roles , I mentioned that you use roles primarily as an

# The SmartDraw Blog said on August 3, 2010 5:37 PM:

Using my own job as SmartDraw’s Community Outreach Manager as an example, this is what I would

Leave a Comment

Name:  
Website:

Powered by SmartDraw

Increase your productivity. Be a better manager.

Subscribe by Email

Click here to get the SmartDraw blog delivered by email.

Recent Posts

Categories