We run an IT consulting firm and also have a smaller software-as-a-service product line. Our leadership team is trying to manage both on the same Accountability Chart, and it is causing operational chaos. How do we structure this correctly?

Question

Tyler Smith · Accepted Answer

Trying to manage two completely different business models with the same operational seats is a recipe for chaos. IT consulting is a high-touch, service-based model, while software-as-a-service is a product-led, recurring-revenue model. They require different processes, metrics, and skill sets.

To fix this, you must look at your Accountability Chart and decide if you need to separate these business lines.

If the software product is still a very small part of your revenue, you can keep it on the same chart, but you must create distinct seats for its unique functions, like product development and subscription support.

If both business lines are mature, you should structure them as two separate divisions under a single parent company seat. The top of your chart will have one Visionary and one Integrator. Below the Integrator, you will have two distinct division seats: Head of IT Consulting and Head of Software.

Each of these heads will have their own dedicated marketing, sales, and operations seats reporting to them. This structure ensures that each business model has the focused leadership it needs to grow. It also makes your business much more attractive to potential buyers, as they can easily see the performance and structure of each division during your exit preparation.