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This Outdated Business Practice Is Holding Your Company Back

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Key Takeaways

  • Replace traditional charts with work charts. Instead of mapping people and job titles, focus on mapping workflows, tasks and value streams. This enables teams to work dynamically.
  • Once you identify the tasks in your work chart that can be automated, start implementing AI agents into these processes. Then assign human teams to high-value work.
  • Implement safeguards to ensure AI has the right levels of oversight and governance. You should also reskill your employees so they’re prepared to work effectively alongside AI.

As a business owner, it’s critical to organize your team in a way that provides the most value, productivity and collaboration. Historically, the best practice was to sit down and map out your organization into a maze of boxes and interconnecting lines that show how each individual connects to one another. While traditional org charts look great framed on the wall, they’re an archaic approach that restricts innovation and throughput today.

The challenge is that organizational charts were designed for the Industrial Age, which required clear structure to enforce control and decision-making, especially in massive organizations with thousands of employees. Today, traditional org charts do nothing more than breed bureaucracy. They create decision-making bottlenecks as work stalls moving up and down the multiple layers and obscuring where work actually gets done.

The emergence of disruptive technologies has created the need for a new approach to organizing people. With automation being capable of completing complex tasks faster and cheaper than a human, the concept of people in roles with rigid job titles is becoming irrelevant. Instead, businesses should be looking for ways to create a structure that enables teams to work dynamically.

The solution is the work chart. Instead of a map of people, a work chart is a living diagram of the work, tasks and output of the organization, whether executed by a human or an algorithm. Entrepreneurs must understand how to make this fundamental shift in thinking to redesign their organizations to function successfully in the age of artificial intelligence.

Related: How to Structure and Build a Team For Long-Term Success

1. Map your workflows, not people

The first essential step in transitioning from a traditional org chart to a work chart requires entrepreneurs to stop focusing on existing titles and shift their attention to value streams. A value stream represents an entire sequence of steps to deliver a specific outcome, product or service.

Shifting your mindset away from your current organizational structure will be the most difficult part of the process. You might be tempted to group certain workstreams together based on who performs them today, rather than how they make sense to be organized.

Mapping out these value streams end-to-end is a great exercise that not only lays the foundation for your new work chart but also helps identify inefficiencies. This rigorous process will shine a light on hidden bureaucracy, redundant steps, manual data replication and crucial friction points. Through the process, the goal is also to identify the individual steps or tasks that are prime candidates for automation.

2. Integrate the AI workforce

Once you’ve identified the tasks in your work chart that can be automated, you’ll want to start implementing AI agents into these processes. AI agents are simply autonomous programs that take a high-level goal and execute the steps needed to complete it. These tasks can include monitoring financial transactions, creating marketing campaigns or analyzing supplier bids and qualifications. On the work chart, the AI agent is simply a non-human resource responsible for the task.

This is where most entrepreneurs get nervous. While it can be scary to think about handing critical tasks to a machine, it’s a necessary step for businesses that want to remain competitive and relevant. The good news is that you don’t have to jump headfirst into automation. Simply start with some of the most basic tasks and expand from there.

Related: The End of Bureaucracy — How Leadership Must Evolve in the Age of Artificial Intelligence

3. Assign human teams to high-value work

There will still be a significant volume of work that can’t be completed by an AI agent and requires human-centric skills such as critical and creative thinking, relationship building and handling ambiguous situations. The next step in the process is to assign humans to the remaining non-automated tasks. This is where the value of shifting away from job titles will become clear. Instead of workstreams being siloed into specific departments, a work chart allows you to assign tasks to small, cross-functional teams with the best skillset for completing the task.

With a work chart, management and oversight must also evolve. Technology can be utilized to help automate task boards and provide visibility of who is performing what task. Your managers will need to shift from being controllers and decision gatekeepers to coaches and resource providers.

4. Implement guardrails and governance

As AI agents gain the ability to act independently, entrepreneurs need safeguards to ensure that AI has the right levels of oversight and governance. Many employees in the workforce today fear that AI will leave them jobless. While this is a valid concern for people in jobs that can be easily automated, the AI revolution will likely create an AI-fueled job boom by adding new roles in the form of AgentOps, a practice of monitoring and managing AI agent performance, security, ethics and compliance.

Entrepreneurs need to consider areas where new tasks and responsibilities can be added to workflows to track the performance and accuracy of the AI agents. This need will require new roles to be created, such as agent strategies to define the goals, constraints and success metrics for AI workflows or AI quality leads that audit AI’s output for errors or compliance issues.

Related: How Entrepreneurs Are Building Leaner, Smarter Teams Through Job Pixelation

5. Re-skill humans for AI collaboration

A major challenge is that most human workers don’t know how to effectively work alongside AI. Employees must learn how to move from being a performer of routine work to a supervisor of automated work. As a business owner, you’ll need to invest in providing your team with the right tools and training to make this cognitive shift.

Training must go beyond basic AI usage and focus on deep AI literacy, prompt engineering, critical evaluation of AI outputs (such as understanding its limitations or potential biases) and ethical implications of automation. This deliberate reskilling ensures that your team is prepared for the future so your business can get the maximum benefit from AI.

The work chart is more than just a diagram. It’s the living, breathing operating model of modern businesses. If executed correctly, it can give entrepreneurs a significant advantage over other companies.

Key Takeaways

  • Replace traditional charts with work charts. Instead of mapping people and job titles, focus on mapping workflows, tasks and value streams. This enables teams to work dynamically.
  • Once you identify the tasks in your work chart that can be automated, start implementing AI agents into these processes. Then assign human teams to high-value work.
  • Implement safeguards to ensure AI has the right levels of oversight and governance. You should also reskill your employees so they’re prepared to work effectively alongside AI.

As a business owner, it’s critical to organize your team in a way that provides the most value, productivity and collaboration. Historically, the best practice was to sit down and map out your organization into a maze of boxes and interconnecting lines that show how each individual connects to one another. While traditional org charts look great framed on the wall, they’re an archaic approach that restricts innovation and throughput today.

The challenge is that organizational charts were designed for the Industrial Age, which required clear structure to enforce control and decision-making, especially in massive organizations with thousands of employees. Today, traditional org charts do nothing more than breed bureaucracy. They create decision-making bottlenecks as work stalls moving up and down the multiple layers and obscuring where work actually gets done.

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