When everyone in the business works hard, everyone is worn out and revenue does not move, what is missing is almost always the base. The base holds each person in place, so that everyone's work adds up to one output.

What gives a motor its power

The source borrows an image from physics, and it is the one that stays with you. The power of a motor depends on its base, and in the source's words, “it does not depend on the terminals, it depends on the base.”

According to the source, the base is what holds the two terminals apart and keeps them in position. In practice it is the bottom plate of the motor, or the concrete floor of the plant the motor is built on.

To see why that matters, picture an electric motor. It produces power because its two terminals stay a fixed distance apart. Take the base away and the terminals touch, and instead of power you get a short circuit.

A business works the same way. Output comes from whatever holds each person in place, and two people doing things do not guarantee it.

Suppose an office of two people, each doing a bit of everything. Both work full days, and the output is that of one and a half people.

Or a garage where the mechanic also picks up the phone, and every call interrupts what he is doing. That is the short circuit, with the two terminals touching.

What the base is in a small business

The source translates the image straight away: in an organisation, the base is the org board, the layout that says who is responsible for what. The org board does for a business what the concrete floor does for a motor.

For a business of three people that sounds oversized, but the booklet says you need no chart at all. Two questions are enough, who is responsible for what, and which work passes to whom, and the answer fits on a single page.

It holds for the smallest business too, and the booklet says so directly, with an org board for a business of three. Whoever answers those two questions in writing has built the base.

Suppose a studio owner who wrote three lines, with one person's name on each. That was all it took, and it became the base of her business.

On the other side, an owner who says everyone does everything because they are small. He has no base, and so no power. He has motion.

And the case the other way round: the same owner defines one area for each person, even if everyone still helps with the rest. Output goes up without adding anyone to the team.

Frantic motion with no output

Here the source reaches the picture that explains your situation. Hanging the org board on the wall is one thing, and bringing it down to the concrete floor is another. Whoever skips that step gets no power from the organisation.

There may be a lot of frantic motion, the source says, but with no fixed terminals nothing is cut, so nothing is generated. In a motor, loose terminals mean no power. In a business it looks like a great deal of work that produces nothing. Then comes the line that is hard to forget: “They're working, oh boy, they're working, oh man!”

The source puts the working hours there in gallons of sweat, with bankruptcy as the only result. The reason it gives is that the form of the organisation is not held. In plain terms, nobody has fixed who does what and how the work connects.

That is an accurate description of a small business at peak overload. Everyone works hard, everyone is tired, and revenue stays where it was. Nobody is lazy, and still nothing accumulates.

Suppose an office that worked six days a week for a whole quarter. Revenue fell, because nobody knew who was responsible for what.

Or an owner who added hours and added no structure. A month on, he was worn out and the numbers had not changed.

Why more effort does not fix it

When the business is stuck, it is easy to add more hours. According to the booklet, effort is not the cause of the problem, and it is not the cure either. While there is no base, every extra hour is more motion inside the same short circuit.

So the right question starts with structure. When everyone works hard and nothing moves, the booklet suggests looking at what holds the effort in place before you ask anyone to work more.

The case the other way round shows how much that can change. The owner who added hours defines three clear areas of responsibility and goes back to a five-day week. The output stays the same, with forty fewer hours of work.

This chapter of the booklet has two exercises, one on the base and one on the short circuit. The next chapter shows how to test whether you really have a structure, or only a claim that you do.

The power of a motor comes from what holds the terminals in place, and so does the output of a business.