Efficiency is the primary goal for most organizations. In order to ensure efficiency, it’s important that everyone knows what their role is and how they can contribute to achieving organizational goals. This article will provide a blueprint on how every company can make an effective organizational chart.
What is an organizational chart?
Organizational charts are graphs that are commonly found in any organization. These charts lay out the hierarchy of authority within an organization — who reports to whom, how many layers separate them from the top of the company, etc. Organizational Charts provide vital information that allows everyone to understand the reporting structure and flow of information throughout an organization.
Why is an organizational chart important?
The org chart is an effective way to communicate the formal and informal structure of a company. Not only does this provide access to vital information, it also provides greater transparency throughout your organization. Transparency leads to more accurate communication and enhanced understanding in how everyone’s work impacts the entire organization.
Tips on how to make a great organizational chart
Organizational charts are incredibly beneficial to an organization. They allow every member of your team to be aware of the reporting structure, understand how information flows through the company, and how they contribute to overall organizational goals. Creating a great organizational chart is not as difficult as it may sound!
Here are some tips on doing just that:
1. Use a tertiary color. Just like the official traffic light colors, green for go, yellow for proceed with caution and red to stop, use a tertiary color to show relative importance amongst different departments. For example, you can use green for your core departments (sales, marketing & finance), blue for support functions (IT, HR & Accounting), and orange for departments that are part of the backbone of your business but do not contribute directly to revenue.
2. Use different shapes to distinguish between management, staff, executives and board members. For example, use ovals for managers, triangles for their direct reports and pentagons for higher level managers/executives.
3. Organizational Charts are best presented in a 2D graph with the top of the pyramid on top and descending downwards by level of seniority. It can be shown from left to right horizontally on a piece of paper or vertically up and down a computer screen. This allows every member of your team to understand where they fit into the company and how they can contribute to its overall success.
4. The number of layers in an organization depends on the size and structure of your business. If you have a workforce that is consistently growing, it’s best to include multiple levels rather than resorting back to an outdated organizational chart due to “layers of management”.
5. Consistency is key when it comes to communication – whether you are communicating via email, phone or in-person. Use the same color scheme, shapes and titles across your company so that communication can be streamlined. This consistency will keep everyone on the same page and will help to enhance overall organizational efficiency.
6. For the best result, keep your organization chart to a maximum of 4 levels. While you can go beyond that mark, it becomes increasingly difficult to read and understand.
7. Be sure to include information regarding the reporting structure of every individual included in your organizational chart. For example, if one manager reports directly to another, include that relationship within the company’s hierarchy.
8. Make everyone feel like they are part of something bigger by including small photos or icons of people next to their titles within the company’s hierarchy. For example, you can use faces with different expressions to show if someone is both capable and interested in expanding their role within your organization. The more people feel engaged, the better results they will have in reaching organizational goals!
9. Organizational charts are automatically privy to change, so it’s best to include a date next to the company name at the top of each organizational chart. This will allow your team members to track progress and see how everyone’s role is evolving over time.
10. By including words along with your organizational chart, you can provide an even greater understanding of what each department does and why their role is critical to the overall success of your company.
11. Use an online org chart maker like Venngage. This online graphic editing platform provides a wide range of free organizational chart templates for companies to use. All you need to do is to create your free account, browse through their template page, choose the template that would best suit your team, and edit. To give you an idea, here are some free org chart examples from Venngage.
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If all of this sounds intimidating and you want help in creating org charts, check out Venngage. Strategically structure your company by making your organizational chart with Venngage today!