The Evolution of the Org Chart

Map responsibilities, visualize reporting lines, show structures: For a long time, organizational chart software was primarily used for the graphical representation of company structures and was considered a useful tool, especially for HR managers. However, in a world that is moving ever faster and becoming increasingly complex, this is no longer enough! At the same time, the requirements for good and transparent corporate governance, such as those underlying rating standards – keyword ESG (which stands for Environmental, Social and Governance) – are increasing.

More than ever, HR departments are looking for in-depth solutions that not only map the current state of an organization, but also enable comprehensive analyses. In addition, there is a need for options to simulate and evaluate various future scenarios, design target states and thus significantly simplify strategic decisions. Thanks to extensive further developments, leading organizational chart solutions are now able to do just that: it is therefore fair to speak of an evolution that has transformed the organizational chart from a pure visualization tool into a valuable analysis and decision-making tool for long-term corporate success.

A major advantage of modern organizational chart solutions is the simulation function: upcoming restructurings or mergers can be designed directly in the existing organizational chart using drag and drop and then evaluated and compared with each other. This enables executives and managers to make well-founded decisions about measures that will ultimately lead to the desired results. It goes without saying that the data from the connected HR system is not changed at any point during the simulation. However, once the restructuring has been approved, the adjustments can be easily imported back into the system.

The implementation of an organizational chart tool with analysis and simulation functions benefits not only the HR department, but the entire management team. However, there are some fundamental aspects that should be considered from the outset when introducing the tool. Companies are therefore well advised to get a competent partner with experience in organizational development and workforce management on board as early as the planning phase. This will ensure that the tool takes full account of the corporate strategy and contributes to increasing effectiveness.