“What a Chart of Accounts does for your financial reporting a Chart of Works does for your business reporting”
Gerhard C. Olivier
At SlightlySkew, we emphasise the critical role of the business owner’s mindset. This mindset not only shapes vision and culture but is also accountable for structuring the business itself. A key part of this is creating foundational systems that guide the business in a structured, coherent manner—systems like the Chart of Works. Just as the Chart of Accounts governs financial clarity, the Chart of Works brings structure and consistency to the non-financial aspects of the business.
Yet, it’s an undeniable reality that business owners cannot be experts in every aspect of their operations. They rely on financial, legal, human resources, and IT specialists to navigate complex challenges. However, it’s unfortunate that one crucial area is often overlooked—the need for business design experts. At SlightlySkew, we aim to change that, emphasising the importance of strategic business design as the foundation for long-term success.
If we turn our attention for a second to the finance capability within any business we find that the financial artefacts such as the Income Statement, the Balance Sheet, the Cash Flow statement, Financial Ratios, etc. are all based on the foundational design of the Chart of Accounts. Without this foundation the artefacts will be not only meaningless but inconsistent and will provide the wrong input in the decision-making process of the business.
It is a shame that businesses produce business artefacts such as Job Descriptions, Workflows, Standard Operating Procedures, Organisational Structures, Performance Dashboards, Business Requirements for technology adoption, Service Level Agreements, etc. without any foundation that supports these artefacts for clarity, consistency and structure needed to manage the non-financial aspects of their business. At SlightlySkew we call this the Chart of Works.
So, how do SlightlySkew make the Chart of Works happen?
At SlightlySkew, we don’t just follow a single framework – we use various frameworks that we have found that best serves you to design your business i.e. the Zachman Framework. Our framework isn’t just a tool; it’s our blueprint for precision. With this framework we can organise the chaos. Our Chart of Works Framework consist of layers ensuring that an enterprise is examined thoroughly at every level of abstraction, helping to align business strategy with operational execution and ensuring coherence across the entire organisation. These layers are created by decomposing the business functions from the highest-level purpose of the business to the lowest level functions operationally required. Because the decomposition commences with the business purpose each element decomposed becomes the purpose of the next layer of decomposition – and therefore we call it a purpose driven structure.
The decomposition starts with one of the dimensions of the framework that we term the “what” or “work” dimension. Our reason; People go to work (activity / function) not to a role or piece of data. The work to be done in the business serves as the central foundation of the business and depicts all work activities that occur in the business to attain a purpose. We use an approach called functional decomposition—breaking down the business into smaller, manageable parts, much like taking apart a machine to understand how each component works. A very sound approach to designing your business. The layers (rows) we create are:
- The Business Purpose Layer – This is the high-level executive view, providing a broad overview of the entire system or enterprise. It defines the organisation’s boundaries, goals, and overall scope. It helps leadership articulate the overall mission, vision, and scope. By understanding the broader context, decision-makers can ensure that all detailed elements align with strategic objectives and long-term goals.
- The Capability Layer – Represents the business owner’s perspective, focusing on business capabilities required to execute on the business strategy. This is generally known as the investment level. Provides a clear understanding of the business operations, helping business owners and stakeholders align organisational strategy with business capabilities. It also ensures that business goals are understood and documented.
- The Job Layer – This layer defines the jobs needed to be done for the capabilities to be successfully executed. Normally the definition at this level represents what needs to be done rather that how it needs to be done. In complex business environment there might be a need for this layer to be represented by two layers.
- The Activity Layer – This is decomposed from the job layer and mostly represents the actual activities with all the related dimensions to be done for the capability to be completed. In very complex organisations this layer again could be represented by two layers or rows.
- The Procedural Layer – Only when required will this layer be documented as it will be the lowest layer and will represent a definition of the business that most people will find to be “micromanaging”.
With this done we have created the scope of the business. Each capability, job, activity and procedure can now be further enhanced. We call this “column” or “dimension” of our framework the “What” dimension – what needs to be done. For each “what” in our functional decomposition we now ask the right questions: Who’s doing the work? What information flows in and out? When and where is it happening? We have added a dimension not generally known and that is “How” do you know the work is done. It serves as measurement for each “what”. Answering these, we ensure that every part of your business aligns with the whole.
Once we’ve painted this picture, extracting the business artefacts mentioned above becomes second nature. The benefits are:
- Clear Understanding Across All Levels: By breaking down the organisation into these distinct viewpoints, it ensures that decision-makers understand how different levels—from strategy to operation—are connected and aligned.
- Holistic Approach: Viewing each level provides a comprehensive view of the enterprise, ensuring that nothing is overlooked, and every aspect of the organisation is considered, from strategic goals down to detailed operation.
- Improved Communication: Each level corresponds to different stakeholders (e.g., executives, business owners, line managers, team leaders and all employees) helping foster clear communication between them. This reduces misunderstandings and ensures everyone works towards the same objectives.
- Better Decision-Making: Analysing these levels allows organisations to make informed decisions at each stage. Executives focus on the big picture, while operational teams can ensure the architecture meets functional needs, improving overall decision-making.
- Scalability and Flexibility: By having a clear view of each level, organisations can better scale and adapt. Changes at any level can be understood in relation to the others, making it easier to manage growth or changes in technology or business processes.
At SlightlySkew, the Chart of Works is more than just a framework; it’s a comprehensive guide to ensure clarity, consistency, and coherence in how your business operates. By implementing this foundational structure, business owners can confidently manage all aspects of their enterprise with the precision and foresight that drives long-term success.