How org charts become a business enabler

Agility and flexibility are the imperatives of the hour for companies aiming to keep up in the intensifying competition. In this context, reorganizations dominate daily operations. However, not a few organizations believe that their transformation can be a process that is eventually completed. This is illustrated, for example, by the current study ‘Agile Pulse 2023’ from the management and technology consulting firm BearingPoint. However, declaring one’s own organizational change as complete hinders precisely what agility is meant to achieve at its core. This blog post explains, therefore, how to remain permanently adaptable and the crucial role that organizational charts play in this context.

An important example of the meaningful use of organizational charts concerns the field of good corporate governance, as it now also determines performance in evaluation processes such as ESG (Environment, Social, Governance). The so-called ‘Good Governance’ ensures that companies can finance themselves and ensure that they are positively perceived by the public, and that people want to work for them. The insight and overview provided by organizational chart software are indispensable in this regard.

This also applies to the entire New Work topic because it involves numerous new organizational forms: remote or mobile work, work in agile structures, as well as self-organized networks or project groups. Different structures often coexist (ambidexterity) or alternate: line organization, matrix organization, project organization, network organization. All of this must be transparent and functional.

Organizational charts, also called ‘Org Charts,’ ensure all of this. But especially today, organizational chart software does much more. Here’s just a brief overview:

• Linking structure with personnel data
• Making complexity manageable
• Keeping pace with changes
• Showing connections and effects
• Making forecasts and simulating scenarios
• Making decisions based on data
• Optimizing organization and corporate governance

Organizational chart software provides users with insights into how companies are structured, who reports to whom, and how units are interconnected and interact. It also provides information about individual employees, job profiles, teams, and departments. It enables insights into how people management and organizational design work together, how aspects of good corporate governance and contemporary HR practices are evolving, where risks exist, and how to address them.

This is achieved when insights are presented in a visually compelling manner, allowing for the identification of problems and the simulation of solutions based on this foundation. Subsequently, the structure of a company, department, or team can be adjusted, and processes can be optimized. Best-in-class software facilitates the three-step process of “Visualize – Analyze – Optimize”, not only accurately depicting complex organizational structures, reporting lines, responsibilities, dependencies, and HR practices on a daily basis but also assisting in decision-making on how companies, departments, or teams can be better positioned and how work and HR processes could run more smoothly.

Gain Clarity about Organizational Structure
Organizational charts provide a clear overview of a company’s structure. They show how different departments are connected and the roles that specific individuals or teams play.

Ensure Efficient Communication
With an organizational chart, employees know exactly whom to approach for specific problems or inquiries. This can reduce misunderstandings and increase communication efficiency.

Facilitate Easy Onboarding
Understanding the structures and roles within a company can be a challenge for new employees. An organizational chart offers a quick and visual representation of the organization, aiding in a faster orientation.

Planning and Reorganization
Organizational charts assist leaders in identifying gabs in the organizational structure or areas where resources need to be reallocated. Thus, they are a valuable tool for management in making strategic decisions.

Transparent Decision-Making
A well-defined organizational chart promotes transparency within the company by illustrating how decisions are made and who is responsible for what.

Enabling Corporate Growth
With the expansion of companies, especially internationally or across various business segments, the organizational structure can become more complex. Organizational charts assist in managing this complexity and provide all stakeholders with a clear overview.

Promotion of Corporate Culture
An organizational chart can also contribute to communicating the culture and values of a company. For instance, it can demonstrate how teamwork and collaboration are enhanced or how flat or hierarchical and organization is structured.

Technological Progress
With modern software solutions, organizational charts can be easily created, updated, and shared today. This makes them an easily accessible and interactive tool for employees at all levels.

Organizational charts contribute to improving efficiency, communication, and understanding within a company. It is therefore more than understandable why their importance in the business environment will continue to grow.