Why Every Ranch Needs an Organizational Chart

Often, running a ranch feels like everyone is doing “a little bit of everything.” We aren't like big businesses - usually only one or a few people are wearing all the hats. And while that flexibility is valuable, it can also lead to confusion, miscommunication, and resentment, especially in family operations.

That’s where an organizational chart comes in.

An org chart isn’t just for corporations. It’s a simple, visual tool that shows who is responsible for what and the hierarchy for decision making. When everyone knows what is expected of them, communication improves, work gets done more efficiently, and there tends to be less finger pointing. It also helps prepare the next generation for leadership by making roles clear and transferable.

Different people have different ways of teaching this, but here is what I recommend:

1. List every single task that needs done throughout the year on a sticky note, and who currently does the majority of that task. Make sure there are no gaps or tasks forgotten. Include every little thing, and make sure there is ONE AND ONLY ONE name on each sticky note. DO NOT put two names on a sticky note because two people are currently completing this task (I know this is tempting) - assign one person to be the main person in charge so you avoid the “I thought you were handling it” moments. You will have A LOT of sticky notes. Here are some examples: fixing the meals for cow working days, scheduling the beef processing day/s, bookkeeping, paying bills, delivering salt and mineral, calculating winter feed rations, scheduling weekly ranch meetings, reviewing and purchasing annual insurance policy, renewing state business license, keeping horses hooves trimmed, maintaining tanks and pipelines, ordering vaccine, communicating with the bank, keeping grazing records, etc. This is just a few to help you understand how deep you go.

2. Group all the sticky notes into five or less categories that make sense to you (you can break them into sub-groups later, but stick to the main categories for now). Examples:

• Production (livestock production, forage production, animal health, feed/nutrition program, livestock control, facitilities maintenance, transportation, genetic program, crop production, etc.)

• Marketing (sales, market research, customer support, new products, etc.)

• Finance (budget, capital availability, investments, accounts receivable, accounts payable, bookkeeping, payroll)

• Human Resources (salary and benefits plan, employee review, training programs, retirement plans, continuing education/professional development, insurance, meals, etc.)

NOTE: These categories become your management positions. ie. Production Manager, Finance Manager, etc.

3. Discuss within your team who will be listed in each of these positions. Often, this is the person whose name is listed on the majority of the sticky notes, though it is important to consider if one person is overloaded and needs to transfer some of their duties - now is the time to discuss this and change the names on the sticky notes if necessary. NOTE: The manager is not responsible for each of the tasks on the sticky notes - they will simply be given decision-making authority and have the final say in this area. The person's name on the sticky note is responsible for completing the duty and reporting to the manager of that area. The manager is responsible for making sure that everything within their area is flowing smoothly and getting done.

***Something very important to keep in mind is that just because a certain person has previously been doing this role, does not mean they are the best fit for the role moving forward. Really consider each person's strengths and the skills they have to offer when assigning names to these roles. For example, just because Mom has always kept the books doesn't mean that Mom is actually good at keeping books or even wants to continue keeping books. Maybe Mom isn't the best fit for the Finance Manager. (This is not a knock on Moms….you all know moms are my favorite characters in ranching stories. )

4. Put the org chart together. I prefer a flow chart for organization. Start at the top, with the shareholders and/or Board of Director's. Next is the CEO of the ranch. Yes, you MUST assign a CEO and yes, it MUST be only one person. Under the CEO list all the group managers with their titles and names. Under each group, list all the duties that fall within that group.

5. Make sure everyone has access to the document and review it regularly, at least twice per year. As the ranch evolves, so should your chart. Revisit it when major changes happen: new employees, enterprises, partnerships, or generational transitions.

An organizational chart doesn’t take away the “family feel” of your ranch, it protects it. On our ranch, we have found it to be very helpful in making sure that nothing gets missed and everyone knows exactly what they are responsible for. By clarifying roles, you reduce stress, preserve relationships, and set your operation up for smoother day to day.

The org chart is just one small piece of the systems that you can put in place to help your ranch. Emilie Hopson, HR guru at Agri-Culture, will be talking to us about many of these kinds of systems in her presentation at the Ranch Leadership & Dynamics: The People Part of Family Ranching Conference on Nov. 7 & 8 in Miles City, MT. This is a conference that you and your ranching family do not want to miss!