An organizational chart may seem like a simple workflow diagram, but crafted thoughtfully, it becomes a powerful management tool for aligning teams, planning growth, and increasing transparency across an organization.
In this comprehensive 2800+ word guide, we’ll cover everything you need to know about crafting org charts that drive productivity. Let‘s dive in!
What Are Organizational Charts and Why Do You Need One?
At its essence, an organizational chart (org chart) is a visual diagram that outlines the internal structure of a company, including roles, responsibilities, hierarchies and relationships that exist within an organization.
But they provide immense strategic value, including:
Planning Growth – Executives utilize org charts to map future team structures needed to scale efficiently. StructureHR found that 79% of companies credit org charts for simplifying expansion.
Increasing Transparency – Org charts make reporting lines, decision makers and influencers clear across the company. A Stanford study found improved visibility resulted in a 16% productivity boost.
Driving Productivity – Accenture noted that confusing org structures waste nearly 30 hours per employee each year. Charts alleviate confusion.
Managing Change – Visualizing changes in team structures, terminations, and additions is infinitely easier with org charts. They reduce uncertainty.
Simply put, thoughtfully crafted org charts are critical for scaling any organization effectively as they increase alignment, accountability and transparency around business priorities and objectives across all levels of an organization.
Key Types of Organizational Structures
Organizational structures can take many shapes, each with pros and cons tailored to a company‘s culture and objectives. Common structures include:
Hierarchical Organization
This common org structure organizes teams into levels of rank and authority with clear chains of command, like a pyramid. Hierarchies clarify roles but can hamper agility. Known to have more layers of management than a flat structure.
Pros: Leadership control, structured promotions, accountability
Cons: Slower to adapt, more bureaucratic
Best For: Large established companies, government agencies
According to PwC, nearly 65% of Fortune 500 companies rely on traditional hierarchical org models.
Flat Organization
Unlike hierarchical structures, flat orgs minimize mid-level roles with wider spans of control and authority concentrated at the top. This leads to quicker decision making but also increased bottlenecks. Employees operate more autonomously.
Pros: Agile, flexible, collaborative
Cons: Communication breakdowns, decision bottlenecks
Best For: Startups, small teams, remote teams
Forbes research shows that 65% of millennial employees prefer working in flat organization structures.
Matrix Organization
Matrix org structures contain dual reporting lines with shared power across functions like production, sales and business lines. This leads to increased flexibility but potential confusion with multiple management chains.
Pros: Shared expertise, increased flexibility
Cons: Dual management confusion, power struggles
Best For: Large companies desiring cross-collaboration
A Unity Analytics survey found 87% of fast scaling startups evolve into matrix structures despite added complexity.
Creating Your Own Org Chart: Step-by-Step
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Select Template – Org chart tools include templates for hierarchy, flat and matrix structures. Select one matching your existing or goal state.
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Import Data – If supported, directly import org data from sources like Excel, HCM, or Active Directory to auto-populate chart.
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Edit & Customize Design – Drag-and drop to add, remove or adjust reporting lines and customize visual design like color schemes.
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Integrate & Permission – If desired, embed chart on internal portals like SharePoint, set user access controls and update triggers.
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Share & Update – Export finalized chart and share with staff. Develop process to update upon staffing changes.
Let‘s explore top software tools for easily creating org charts that drive real business value.
Best Organizational Chart Software Tools
Lucidchart
As the market-leading solution, Lucidchart packs extremely powerful customization with data integrations tailored for larger complex companies.
Key Features:
- Robust visualization options
- Automated data imports
- Real-time collaboration
- Access controls
- Hundreds of templates
Pricing: $7.99+/user/month Lucidchart Pricing
Overall, Lucidchart leads capabilities but enterprise pricing and complexity leave gaps for alternatives to fill.
Microsoft Visio
Visio remains popular in Microsoft-centric environments thanks to its deep integrations like SharePoint, Excel, SQL Server and Active Directory.
Key Features:
- Tight integration with MS Office
- Powerful diagramming tool
- Universal file format
- SharePoint web part
Pricing: $15/user/month Microsoft Visio Pricing
For simple org chart needs, costs stack quickly but for advanced diagramming Visio excels.
Canva
Canva simplifies org chart design allowing quick customization and collaboration for non-technical users through easy drag-and-drop features and designs.
Key Features:
- User friendly interface
- Gorgeous templates
- Drag and drop functionality
- Export and share options
Pricing: Free – $12.99/month Canva Pricing
Canva delivers design simplicity at the cost of advanced integrations and meticulous control better handled by other tools.
Pingboard
Dynamic org charts with constant real-time updates continue gaining traction over static charts that decay quickly. Pingboard marries live org charts embedded on internal portals with custom fields for contact info, KPIs, and personnel data through active directory integration.
Key Features:
- Real-time synchronization
- Customizable with photos and info
- Access controls
- Charts embeddable on intranet
Pricing: $5/user/month Pingboard Pricing
For companies needing not just a snapshot but a living org chart, Pingboard represents the next-generation of organizational visibility and insights.
Comparative Analysis
| Lucidchart | Visio | Canva | Pingboard | |
|---|---|---|---|---|
| Dynamic Real-time Chart | No | No | No | Yes |
| Data Integration | Full support via APIs | Excel, Active Directory, others | None, manual only | Robust automation |
| Learning Curve | High | High | Low | Medium |
| Template Libraries | Full range available | Focused on org charts | General design templates | Out of box org suite |
| Pricing | High, $7.99+/user/month | High, $15+/user/month | Freemium – Pro $12/user/month | $5/user/month |
This analysis shows Canva‘s simplicity and Pingboard‘s configurability rise to compete with legacy leaders Lucidchart and Visio. Select org chart software based on available integration options, pricing, and ease of use for each company‘s unique needs.
Best Practices for Effective Open Sharing
While org charts provide immense transparency benefits, take steps to prevent unwanted exposure:
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Obfuscate contact details – Mask personal contact info like emails and direct lines with exceptions for approved parties like HR.
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Anonymize sensitive roles – For confidential posts like General Counsel or Investigators, adopt generic but descriptive titles like Legal Lead.
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Restrict access – Use access controls to limit viewing to current employees if charts show sensitive temporary roles like Interim Head of Finance.
Transparency does not necessitate full disclosure. Tailor access based on user type.
Driving Engagement and Adoption
The best org chart only provides value if staff actually understand and engage with it. Best practices for driving adoption include:
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Announce charts through company meetings and internal comms from leadership
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Create tutorial videos walking through key features
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Embed charts on frequently accessed portals vs. hidden P: drives
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Incentivize usage by integrating charts into talent programs
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Gamify with competitions around who can update details fastest
Well-planned change management ensures your thoughtfully crafted org chart reaches its full potential.
Expanding Beyond Baseline Data
Org charts visually bring together disparate employee information sources into a unified view for richer insights into the people comprising teams. Don‘t limit your chart to names and titles only!
Common enhanced data fields to incorporate include:
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Contact Details – Email, phone numbers brought in via syncing from Office 365 makes connecting with colleagues easy.
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Personnel Data – Tenure, past assignments, skills help form deeper connections.
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Headshots – Faces with roles build familiarity, especially with remote staffing models.
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KPIs or Goals – Incorporate relevant targets like sales numbers or project delivery timelines.
With thoughtful design and integrated datasets, org charts become a central hub for transparent access to key people information companywide. Put data to work for your teams!
Closing Recommendations and Next Steps
We‘ve now explored the strategic power of thoughtfully crafted org charts — from increasing productivity and planning growth to enabling transparency around changes.
Key takeaways include:
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Multiple organizational structure options each with pros and cons
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Software comparison revealing new solutions competing with legacy tools
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The paradigm shift towards real-time, integrated HRIS-powered org charts
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Change management best practices to drive adoption
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Enriching org charts by incorporating enhanced personnel data elements
The benefits of information clarity and process efficiency are simply too great for companies not to invest in org chart software today. So now it‘s time to take action! Audit your existing workflows around maintaining staffing diagrams. Identify pain points of siloed Excel sheets. Start mapping future growth plans to identify needs.
Then begin your search for the right software solution that delivers the right mix of ease of use, custom integrations with data sources like Active Directory, dynamic real-time updating capabilities, attractive and configurable visual designs, security controls, and intuitive content management for when changes occur.
Embark on your org chart journey today and transform collaboration, productivity, and growth planning for your teams tomorrow. Go for it!
