25. January 2024 4 minutes reading time

Avoiding Conceptual and Technical Errors

Proper Procedures for Developing Org Charts

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In part 1 of our new series on avoiding mistakes when setting up organizational charts, we addressed basic problems and how to solve them. However, when creating organizational charts, conceptual and technical issues must be considered in addition to the purely design aspects. These can also have a significant impact on the effectiveness and functionality of the organizational chart. Therefore, here are some key aspects to avoid.

    7 Conceptual Errors to Avoid

    1. Disregarding Organizational Culture and Dynamics
      An organizational chart should not only depict the formal structure, but also take into account the actual work processes and relationships within the organization. Disregarding the corporate culture and informal networks can therefore lead to an unrealistic and impractical organizational chart.
    2. Misinterpreting Hierarchy Levels
      A common mistake is the incorrect representation of hierarchy levels, which leads to misunderstandings about authority and responsibilities. It is therefore important that the organizational chart accurately reflects the actual power structure within the organization.
    3. Ignoring Cross-Connections and Matrix Structures
      Modern organizations are often complex and have matrix structures or cross-connections between different departments. An organization chart that does not show these connections gives an incomplete picture of the organization.
    4. Inadequate Flexibility for Future Changes
      Organizations are constantly evolving. An organizational chart that is not easy to update or adapt will quickly become outdated and can be a hindrance to organizational change.
    5. Overemphasizing Positions instead of Roles and Functions
      Another mistake is the excessive focus on position titles instead of actual roles and functions. This leads to a lack of understanding of who is responsible for what.
    6. Neglecting Communication Flows
      An organization chart should also depict the communication channels within the organization. Neglecting these aspects results in a lack of transparency and inefficient communication.
    7. Unclear Definition of Teams and Workgroups
      Teams or working groups that are not clearly defined in an organization chart contribute to confusion about collaboration and responsibilities.

    Possible Errors in Using Software for Org Chart Creation:

    Excessive Reliance on Templates:
    Many org chart software solutions offer templates that simplify design but may not perfectly align with your organization’s specific structure. Relying too heavily on these templates can result in the org chart not accurately reflecting the actual relationships in the organization.

    Data Integration Errors:
    When using software that imports data from other systems (e.g., HR systems), data transfer errors can occur, leading to inaccuracies or outdated information in the org chart.

    Lack of Software Adaptability:
    Some org chart tools may not be flexible enough to represent specific requirements or unusual organizational structures. Consequently, the created org chart may fail to depict the actual complexity or dynamics of the organization.

    Insufficient Update Capabilities:
    Software that is not easy to update can lead to outdated org charts. It’s crucial that the software provides an easy way to integrate changes in the organizational structure quickly and efficiently.

    Sharing and Access Challenges:
    Issues may arise when sharing the org chart or providing access to different employees, especially if the software lacks cloud-based or collaborative features.

    Privacy and Security Concerns:
    When using software that processes sensitive company data, there is always a risk of privacy breaches. Therefore, it’s important to choose a solution that meets high standards regarding data privacy and security.

    Modern software solutions, such as Ingentis org.manager, address the conceptual and technical challenges outlined above with innovative approaches and sophisticated features. Through direct integration with various data sources, users can rely on the org chart always reflecting the valid status quo.

    Org Charts with Measurable Added Value

    Furthermore, it is effortlessly possible to automatically visualize any corporate or HR metrics on a daily basis, allowing for the analysis of the current state of the entire organization or individual organizational units. Depending on the company’s requirements, this could include information on gender distribution and age structure of employees, the span of control for individual managers, or data on budgets and open positions – either directly in the org chart, within a convenient dashboard, or presented as a comprehensive HR report.

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

    Dashboard for a quick overview
    In addition to the personal data of employees, the organizational chart can also contain further information - such as the respective budgets in this case.

    Powertool Org Chart

    Practical guide to organizational chart software

    Today, modern organizational chart software does much more than simply provide a visual representation of a company structure. Our practical guide shows how you can leverage the strategic potential of software for creating and maintaining organizational charts.
    Ingentis Powertool Org Chart

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