Traction
Company organization
Create a new organizational structure

Create a new organizational structure

from Traction by Gino Wickman

How to Apply This

  1. Draw three boxes for three primary functions: sales and marketing, operations, and finance.
    A fundamental belief is that there are only three primary functions in any business: sales and marketing generate business, operations provide the service, or manufacture the product. At the same time, finance manages money inflow and outflow.

  2. Expand your primary functions if needed.
    Having three to seven primary functions is a sweet spot. As you grow, you can expand each primary function into minor business functions.

  3. Draw another box that connects the primary functions. Define an integrator.
    The integrator is the person who harmoniously integrates the primary functions of the business. That’s usually a CEO, president, or general manager, and this person has a unique ability to run the organization.

  4. Draw another box that is above an integrator box. Define a visionary.
    The visionary is typically the owner, co-owner, or founder. In a partnership, one partner is visionary, and the other is the integrator.

  5. Write down roles for each function.
    Have five bullet points, at most, for each function. For example, operations have the following roles: customer service, process management, making the product, provide the service.

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