PRESENTS: GROWTH OF HUMAN RESOURCES: FILLING THE ORGANIZATIONAL CHART WITH EMPLOYEES

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1 PRESENTS: GROWTH OF HUMAN RESOURCES: FILLING THE ORGANIZATIONAL CHART WITH EMPLOYEES

2 Overview We have identified various benchmarks for you when you make plans to expand your business beyond yourself. In this document are descriptions for each of these benchmarks and diagrams that show what your business s organizational structure will look like at each benchmark on both a practical level and a big-picture or master level. Practical Level- Shows the structure of your business based on the people you have employed (one employee, one position) Master Level- Shows the structure of your business based on the big picture (see FR Organizational Chart document) These benchmarks serve as general guidelines to growing your team. Your Long Term Vision will impact what type of team and how big of a team you want to build. Your Organizational Chart does not have to look exactly like what you see here to run a High Performing Business. However, understanding the different phases of growth along with opportunities and challenges within them will set your business up for long term success. Benchmarks Startup Benchmark 1: Making your first hire Benchmark 2: Making your second hire Transition: Developing and utilizing Fitness Revolution systems Benchmark 3: Bringing on a manager (or promoting within) Benchmark 4: Bringing on a second manager Benchmark 5: Becoming a true entrepreneur

3 Startup Your tasks are broken into management responsibilities and training/coaching responsibilities. Your primary goal here is to generate leads, provide a great service, and convert in order to grow your business. Also during this time, you should be creating completion plans for ALL administrative tasks and documenting your training and assessment system. Doing this early on can provide a great return on your time when making hires and aid in training them in their roles. At this phase of your business, your organizational chart will look something like one of the following: Practical Organizational Chart for Startups Manager Master Organizational Chart for Startups Manager (es) Blue= Positions you occupy Red= Positions you occupy and may be developing via the creation of completion plans and other systems Black= Irrelevant to this discussion

4 Benchmark 1: Making Your First Hire Reasons to hire your first employee: 1. When the workload of the administrative assistant roles you are filling reaches critical mass (10+ hours/wk doing routine administrative tasks), then you should hire an administrative assistant 2. When the demand for your training services outgrows your ability to provide a quality training experience (e.g. the client to coach ratio in a class or classes is too great for you to provide excellent coaching to every individual), you should hire an assistant coach 3. When a demonstrated weakness of yours in a certain job position is negatively impacting business growth and you realize another person could perform the position s responsibilities more efficiently and effectively 4. When you no longer wish to fill a certain position AND have the revenue to support hiring someone for that position If this is an administrative assistant hire (facility management, client management, or hybrid), the completion plans for this position should already be filled out and ready for use to ease the training process. If not, getting them filled out IMMEDIATELY should be the top priority of both yourself and your employee. These will be a staple for how your business operates. Having an assistant coach requires that you have documented the following: 1. Your Initial Assessment System 2. Your Boot Camp Orientation System 3. Your Exercise Progressions, Regressions, and ing Cues 4. Your Lead Conversion and Sales System Your first hire should be brought on to fill a specific position but will likely start out in more of a hybrid position TEMPORARILY. This means that the person you bring on will occupy more than one position in the Master Organizational Chart. As your business grows, the person will begin having a more refined role as either a coach or as one of the administrative assistants.

5 Your role in the business still will remain largely the same (except you will now have an employee to manage), and your primary goal at this point is still to focus on marketing, service, and lead conversion. See the diagrams below to visualize what your business will look like when you reach this benchmark.

6 Practical Organizational Charts at Benchmark 1 Manager Manager Administrative (hybrid employee) (hybrid employee) Primarily an administrative hire Primarily a coaching hire Master Organizational Chart at Benchmark 1 Manager Blue= Positions you occupy Green= Positions which are filled by first employee (based on the job description you write) and likely yourself to some degree Black= Irrelevant to this discussion

7 Benchmark 2: Making your second hire Making your second hire deserves some additional mention because there are other factors you may have not considered when you made your first hire. The business is not just you anymore; therefore, in addition to the reasons listed for making your first hire, you should also consider the following: 1. You need to hire someone with a different skill set than your first employee. For example, if your first hire was a great assistant coach who occasionally doubled as an administrative assistant but wasn t organized, was terrible at answering phones, and frequently made data entry errors, you would need to hire an administrative assistant. Likewise, if you had an administrative assistant who sometimes doubled as an assistant coach but wasn t really cut out for sales and assessments, you would want to hire an assistant coach. 2. The responsibilities and workload of your first employee reach critical mass and you need to give the person a more specialized role (e.g. assistant coach only or client management assistant only) and hire someone new to fill in for other tasks. Critical mass is defined by the availability of the individual employee. As an example, your first employee may only have time for a 20 hour/wk job, but you might have 30 hours/wk of work you wish to delegate. In that case, you would need to hire someone for those extra 10 hours/wk or else you will be losing 10 hours of your own time, which would be utilized for higher return activities and put your first employee in a role (such as facility management assistant) that would only require 20 hours/wk. 3. The ability of your business (not just you anymore) to provide high quality training has reached critical mass, and you need to hire more coaches to accommodate the demand. For example, your boot camp classes may all have filled up or grown in size to a point where your coach to client ratio was inadequate for good service. As another example, if you need to add a new semi-private training time slot when you also have boot camp class, then you need to bring someone in to coach it. The questions you should ask yourself before hiring any additional non-management level employees, and so on and so forth are similar to the ones above.

8 Sample Practical Organizational Charts at Benchmark 2 Manager Manager Administrative * * 1* 2* Manager * * *Potential hybrid positions Master Organizational Chart at Benchmark 1B Manager (es) Blue= Positions you occupy Green= Positions which have their responsibilities filled by two employees (based on the job descriptions you write) and likely yourself to some degree Black= Irrelevant to this discussion

9 Transition: Developing Positions As you bring on staff to fill in for all the non-management level tasks, your role will change more and more to manager. At some point, these positions will be highly developed so that on any single day, your business should be able function without you being there, as the everyday tasks will be completely taken care of by your well-trained staff. However, you are still required to hold the business together when it comes to systems and people management. Systems management requires that you constantly evaluate that the systems you have in place function precisely as you want them to function and that you have developed, or are developing, all the systems (and put them in writing) required for smooth operation of the daily work that needs to get done in your business. This means that: The completion plans you have are as detailed as necessary for both accuracy and ease of use Your filing systems (where people put documents and when) and client management systems are consistent and prevent loss of client information Your personal training systems not only optimize clients results but also are able to be understood and re-created by your coaches Your marketing systems bring in new leads Your sales systems to convert leads into clients People management requires that: You consistently evaluate your staff to ensure they are able to follow your systems as written They are put in the best possible positions to be successful They are engaged and inspired to do their best every day They are empowered to develop personally and professionally to be more effective employees During this transition phase, you should be optimizing your management systems so that you can hire and train managers to replace you. Fitness Revolution uses the term blueprint to describe its

10 various management systems. Managers you hire should be trained on how to carry out those blueprints or even delegate some of the tasks found within them.

11 Practical Organizational Chart During Transition* Manager (es) *Depending on your business s revenue and your employees abilities and availability, you may have any number of employees filling these positions. There is no standard number you need on your staff to be in the transition phase. It is more that these positions are already highly developed enough for you to hire or train a manager. Master Organizational Chart During Transition Manager (es) Blue= Positions you occupy Green= Positions that are highly developed and entirely filled by staff Red= Positions you currently fill but are developing so you can hire managers Black= Irrelevant to this discussion

12 Benchmark 3: Bringing on a Manager (or Promoting Within) The Fitness Revolution organizational chart example has two management positions, the training manager and the facility manager, and a pair of job descriptions to accompany them. Distinguishing between these positions is necessary as both will require a significant time commitment and several distinct responsibilities. Reasons to fill a managerial position: 1. When the demand for your time as a manager is greater than your available time (more than hours per week for management responsibilities) 2. When a demonstrated weakness of yours in a certain management position is negatively impacting business activity or growth and you realize another person could perform the position s responsibilities more efficiently and effectively 3. When you no longer wish to fill a certain position AND have the revenue to support hiring someone for that position You also have two options for filling a managerial position. First, you can hire someone externally. More likely, however, you would promote one of your current employees. Regardless, hiring your first manager is similar to hiring your first employee in that the demand for that position may not be great enough where this person wouldn t need to fill some responsibilities for an assistant position as well. In other words, a manager may initially be a hybrid employee until the position can be fully developed or revenues are increased. On the following page, there are 2 organizational charts showing what your business could look like when you hire your first manager (depending on which position you fill).

13 Master Organizational Charts at Benchmark 3 Manager* (es) *Potential hybrid positions Manager * (es) *Potential hybrid positions Blue= Positions you occupy Green= Positions that are highly developed and entirely filled by staff Red= Positions you currently fill but are developing so you can hire managers Black= Irrelevant to this discussion

14 Benchmark 4: Bringing on a second manager Your second management hire is much like your first, except you should have a clearer idea of what to expect from the process. The reason you hire a second manager is so that you can free up your time to work on the business, rather than working in it. Similarly, to any employee you may hire, your second manager may have to be a hybrid employee initially, filling a management role while still having some assistant responsibilities. The goal is always to develop your business to support each and every position in the organizational chart in its entirety. Master Organizational Chart at Benchmark 4 Manager* * (es) *Potential hybrid positions Blue= Positions you occupy Green= Positions employees fill Black= Irrelevant to this discussion

15 Benchmark 5: Becoming a True Entrepreneur Once you have your two management positions fully developed, your business organizational chart will be filled entirely with employees who have specific, well-defined responsibilities. Then, you can truly be an entrepreneur. Your management role at this point includes the following: 1. Ensuring your management positions stay filled with people who are capable and willing to follow and improve your systems 2. Ensuring that your managers have everything they need to operate the business successfully These two things are achieved by analyzing efficiency and quality. Beyond that, you can use your time to do whatever you want. That might include opening another location, adding departments and positions to your existing business, developing and integrating new services and program offerings into your existing departments, tweaking and testing new systems or training programs, or just training a few select clients to satisfy your desire to coach. It really doesn t matter what you choose to do, as your business is designed to serve you at this point. Manager (es) Blue= Positions you occupy Green= Positions employees fill Black= Irrelevant to this discussion

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