Business Systems and Processes.

The Systems Thinker Blog

The Organization Chart—Your First Business System!

The Organization Chart is the most fundamental business system. It graphically represents the operational structure, leadership, and relationships within an organization. It divides a company into high-level administrative departments such as marketing, finance, and operations. It can also show lines of authority, sometimes known as the “chain of command.”

The Organization Chart is like the skeleton of the body; upon it hangs all the muscle, tissue, vital organs, and life-giving systems of the organism.

The following chart shows several business functions within a typical company. Below them are listed example systems or subsystems within those general functions.
Org Chart Systems

How Your Organization Chart Works

On an Organization Chart, the people who fill positions at higher levels are managers. On the same level across the chart, they are usually considered peers. Supervisors and other workers fill lower-level positions. The flow of authority is downward where business activities also become increasingly specialized.

Some companies have broader Organization Charts and are characterized by more department managers, greater specialization, less bureaucracy, and the ability to make faster decisions. Other companies have narrower and deeper Organization Charts with a few managers wearing “multiple hats.”

For example, a large organization could have a Human Resource Department, an Information Technology Department, and an Accounting Department, all having separate managers with a narrow focus of responsibilities. In a smaller organization, however, these same three business activities could fall within a single Administration Department that is managed by one person.

The Framework for All Your Business Systems

The Organization Chart is your foundational business system and provides the framework upon which your business is built. All business systems and processes cascade down from the high-level activities described on the Organization Chart to lower-level tasks, and finally to steps within each task.

As Michael Gerber (“E-Myth Revisited”) teaches, organize around the business functions on your Org Chart, not around specific people. People come and go, but you need your organization structure to stay intact. People come and go, but your organization structure should remain the same.

It is OK to put names under the functions on the Organization Chart so that everyone knows where each person fits in. Some people may have their name on more than one box until the workload becomes further distributed. Do not create an Org Chart with only the names of people and no business functions!

Develop your business systems within each major function on the Organization Chart. Then, let the systems run your business, and people run your systems. Again, people may come and go, but the systems remain constant, and your business continues steadily forward without interruption.

By the way, Box Theory™ Software will enable you to create your Organization Chart and the unique business systems that fall within each major business function. This is the best way to build an organized and smooth-running company. Check it out today!

*****Special Alert: My Retirement is Your Gain*****

To give back to the entrepreneurial community, I HAVE DECIDED TO GIVE AWAY MY VALUABLE SYSTEMS-BUILDING SOFTWARE, ecOURSE, AND OTHER INFORMATION ABSOLUTELY FREE. By filling out the form on this page, you will go directly to a download page. This is not hype. There is no catch. You will receive a software product and a “college equivalent” eCourse on how to develop effective business systems and processes. Customers have been paying for this software and eCourse for fourteen years (see What Cutomers Are Saying).

I will show you how to eliminate business frustrations and make more money by creating remarkable systems and processes that boost customer loyalty, profitability and growth. The application of these strategies has proven to be of great worth for owners of many small and mid-size businesses. Put me to the test!

You will learn the following, and much more:

  • How to become a Systems Thinker and raise your business I.Q. by 80 points—OVERNIGHT.
  • What six elements are found in every great business system.
  • How you can remove waste and inefficiency, and build a results-driven organization.
  • Why good systems and processes are the essential ingredient to start, grow, fix or franchise (replicate) your business.

You have nothing to lose and everything to gain. I will not be trying to sell you because you are getting everything for FREE, much more than I have described here. I won’t be contacting you; however, you can contact me for help with the software or your business at any time. Please browse around my website. If you have any questions, email me, Ron Carroll, at

I hope you enjoy and benefit from this FREE offer. It was a labor of love for me to develop. Becoming a Systems Thinker and using the Box Theory™ methodology will be one of the best decisions you have ever made.

I’ll be cheering you on from my quiet fishing hole in the mountains of Utah.

I want to learn how to create remarkable business systems …

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It's time for me to focus on other things. Many hours and dollars have gone into my software and written materials over the last fourteen years. Now it's time to give back. This is not a gimmick. There is nothing to buy. I give it all to you for free. If you use the software and apply the principles, you can create a remarkable company. See Below. Have fun!

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Welcome to the #1 website for helping owners of small to midsize businesses create customer-pleasing, waste-removing, profit-boosting business systems and processes.

Michael Gerber, "E-Myth"

Michael Gerber

"Organize around business functions, not people. Build systems within each business function. Let systems run the business and people run the systems. People come and go but the systems remain constant."

W. Edwards Deming, Total Quality Management

W. Edwards Deming

"If you can't describe what you are doing as a process, you don't know what you're doing. . . . 94% of all failure is a result of the system, not people."