Understanding Organizational Structure
Designing an org structure around roles rather than people, mapping current and future state, and writing role descriptions that make accountability clear without falling into micromanagement.
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About this episode
Recorded in person in Calgary, Josh and Lyndon walk through how to build an organizational structure that actually works as a business grows. The key distinction Lyndon hammers on throughout: org charts should report role to role, not person to person. That structural choice surfaces how many hats the owner is actually wearing — marketing manager, sales manager, ops manager, all reporting to themselves as president — and where to start hiring or delegating from.
The conversation hits the practical mechanics: document your current state, map your three-to-five-year future state, and use the gap between them to inform what role gets hired next. Lyndon references Dan Martell's Buy Back Your Time as a guide for measuring where your time actually goes and where to start offloading. They get into the rule of thumb of no more than seven direct reports, the difference between leading individual contributors and leading other leaders (the typical $1-2M ceiling where many owners get stuck), and the importance of accountability for outcomes rather than activities — which is what lets you avoid micromanaging remote teams. Josh's reframe lands well: when results are off, look at the process before you blame the person.
The closing thread is that structure isn't rigidity — it's clarity. People perform better when they know what they're accountable for and what "done" looks like, and the gray-area duties-as-required can sit alongside that without eroding it.
Chapters
- 00:00:00 Intro: org structure, org charts, roles and responsibilities
- 00:00:48 Defining the org chart: current state and future state
- 00:01:51 Why role-based not person-based reporting
- 00:04:30 Measuring your time and finding your superpower
- 00:10:11 The chassis every business has: marketing, sales, ops, finance, HR, IT
- 00:12:24 Outsourced roles still belong on the org chart
- 00:13:58 Roles, accountabilities, and avoiding micromanagement
- 00:19:00 Person or process? Diagnosing performance issues
- 00:21:08 Span of control: seven direct reports rule of thumb
- 00:26:14 Reactive vs proactive hiring and the kitchen sink admin
- 00:30:23 Takeaways: structure as clarity, one line of reporting
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Key moments
“You can't improve what you're not measuring. So the first thing you got to do is measure what you're doing with your time.”
“Find out what your superpower is in your business and just be more present in that space.”
“I don't really care what they do as long as they get the job done.”
“I always take a look at the process before take a look at the person.”
“Shared responsibility is no responsibility.”
Your hosts
Joshua Leyenhorst
Founder of BasePoint CPA. Chartered Professional Accountant (CPA) and Certified Exit Planning Advisor (CEPA), helping business owners see the full picture of their numbers.
More About BasePoint CPA →
Lyndon Smith
Founder of Expansive EDGE. Two decades in projects and design across six continents, focused on operational leadership and continuous improvement for small and medium-sized businesses.
More About Expansive EDGE →Never miss an episode
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