The best org chart is simple, up-to-date, and flexible so that anyone can understand it to make informed decisions. It’s required for any workforce planning process, such as creating a headcount plan, reorg, and promotion plans.
It also helps with other things like:
- Shows who work in each department and who they should talk to if they have a problem.
- Make sure everyone knows what their roles and responsibilities are.
- Put all of the employee’s contact information in one place so it’s easy to find
- Help managers figure out the best way to use their staff and resources – Show clear paths for employees to get promoted.
Agentnoon’s interactive org chart that integrates with any HR systems that stays updated
Here are a few key best practices to keep in mind when creating an org chart.
- Keep it simple: An org chart should be easy to understand and navigate. Avoid using too many boxes or lines, and use clear labels and colors to distinguish different levels and roles.
- Make it up-to-date: An org chart should be regularly updated to reflect changes in the company’s structure, such as new hires, promotions, or reorganizations. This will help ensure that everyone has a clear understanding of the current state of the organization.
- Use it as a communication tool: An org chart can be a powerful tool for communicating information about the company’s structure and operations. Share it with employees and stakeholders to help them understand how the company is organized and how they fit into the bigger picture.
- Use it to identify opportunities: An org chart can help managers identify potential opportunities for improvement, such as areas where there may be too many layers of hierarchy or where communication is not flowing efficiently.
- Show the whole picture: An org chart should not just show the formal structure of the company but also the informal networks, for example, cross-functional teams, project teams, and ad-hoc teams. This will help to give a more realistic picture of how the company operates and how decisions are made.
- Be flexible: An org chart should be flexible and easy to update as the company grows and changes. Avoid using software that requires extensive technical knowledge or is difficult to update.
- Use it to align strategy: An org chart can help managers to align the company’s strategy with its structure. By identifying the key roles and responsibilities within the organization, managers can ensure that the company is structured in a way that supports its strategic goals.
- Make it accessible: An org chart should be accessible to all employees. Share it on the company’s intranet or make it available in a shared drive so everyone can access it when needed.
An org chart is a valuable tool for any company, especially for executives who manage hundreds of people. It can help to clarify roles and responsibilities, identify opportunities for improvement, and align the company’s strategy with its structure. By keeping it simple, up-to-date, and accessible and using it as a communication tool, managers can ensure that everyone has a clear understanding of the company’s organization and operations.