A Fresh Approach to Creating Organizational Charts

calendar Aug 23, 2023 · 4 min read · Orgcharts Organization Management Productivity Strategy  ·
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Introduction to Organizational Charts

Creating organizational charts can be a daunting task, especially for those who are new to the process. A well-designed org chart is essential in communicating the structure and hierarchy of an organization, but many business owners and managers struggle to create one that accurately reflects their company's dynamics. According to a survey by the Society for Human Resource Management (SHRM), 61% of employees are more likely to stay at a company that has a clear organizational structure.

In this blog post, we will take a fresh approach to creating organizational charts. We'll explore the benefits of having an org chart, the different types of charts, and the steps involved in creating one. By the end of this article, you'll have a better understanding of how to create an organizational chart that reflects your company's unique structure and goals.

Benefits of Organizational Charts

Organizational charts offer numerous benefits to businesses of all sizes. Some of the most significant advantages include:

  • Improved communication: An org chart helps employees understand who reports to whom and who is responsible for specific tasks and projects.
  • Increased efficiency: By clearly defining roles and responsibilities, an org chart can help reduce confusion and streamline decision-making processes.
  • Better management: An org chart provides a visual representation of the company's structure, making it easier for managers to identify gaps and areas for improvement.
  • Enhanced accountability: By defining clear roles and responsibilities, an org chart can help increase accountability and reduce errors.

According to a study by MIT Sloan Management Review, companies with well-designed org charts are more likely to achieve their strategic goals and outperform their competitors.

Types of Organizational Charts

There are several types of organizational charts, each with its own strengths and weaknesses. Some of the most common types include:

  • Hierarchical org chart: This is the most traditional type of org chart, which displays the company's structure in a top-down format.
  • Flat org chart: This type of chart is ideal for small businesses or companies with a flat organizational structure.
  • Matrix org chart: This type of chart is used by companies that have multiple teams and departments working together on projects.
  • Functional org chart: This type of chart is used by companies that have multiple departments with different functions.

Choosing the right type of org chart depends on the company's structure and goals. By selecting the correct type, you can ensure that your org chart accurately reflects your company's dynamics.

Steps to Create an Organizational Chart

Creating an organizational chart involves several steps, including:

  1. Define the purpose: Before creating an org chart, it's essential to define its purpose. Will it be used for internal communication, or will it be shared with external stakeholders?
  2. Gather information: Gather information about the company's structure, including job titles, departments, and reporting relationships.
  3. Choose a tool: Select a tool to create the org chart, such as Microsoft Visio or OrgChart.
  4. Design the chart: Design the chart, using the information gathered earlier. Use shapes and colors to represent different departments and job titles.
  5. Review and revise: Review the chart and make any necessary revisions.

According to a study by the Harvard Business Review, companies that take the time to create a well-designed org chart are more likely to achieve their strategic goals.

Best Practices

In addition to the steps involved in creating an org chart, there are several best practices to keep in mind, including:

  • Keep it simple: Avoid cluttering the chart with too much information.
  • Use colors and shapes: Use different colors and shapes to represent different departments and job titles.
  • Make it visually appealing: Use a clear and concise font and add some visual elements to make the chart more engaging.

By following these best practices, you can create an org chart that is both informative and visually appealing.

Conclusion

Creating an organizational chart can seem daunting, but by taking a fresh approach and following the steps and best practices outlined in this article, you can create a chart that accurately reflects your company's unique structure and goals. Remember, an org chart is not just a visual representation of your company's structure; it's also a tool for improving communication, increasing efficiency, and enhancing management.

So, what's your approach to creating organizational charts? Share your thoughts in the comments below and let's get the conversation started!