What is an organizational chart?

Understanding organizational charts

Organizational charts ("org" charts)  are visual roadmaps that outline how a company operates. They clarify who reports to whom, which departments handle specific functions, and how different teams collaborate to achieve company goals. By providing a comprehensive view of a company’s structure, org charts help eliminate confusion about roles and responsibilities.

These visual tools are valuable for internal communication, making it easier for employees to identify decision-makers and understand approval processes. When everyone knows the chain of command, questions get directed to the right people, and project management benefits as projects move forward more efficiently. A well-designed business organizational chart is a reference point that teams can consult whenever they need to navigate the company structure.

How to create an organizational chart

Creating a useful organizational chart follows a straightforward process that transforms complex relationships into clear visuals. While the creation process may seem straightforward, the real challenge is keeping the chart current as people join, leave, or change roles within your organization. Setting up a regular review schedule helps ensure your organizational chart accurately reflects your company's structure.

Here’s how to get started with creating your organizational chart:

Define the purpose and scope

Clarify why you're creating the chart and who will use it. Some charts might be developed for public-facing purposes on company websites, while others might be designed for internal use during onboarding or strategic planning.

Decide whether your chart will encompass the entire organization or focus on a specific department or team. The scope will influence the level of detail and the format you choose, helping you create a more targeted and useful tool.

Gather accurate information

Work with HR to collect current data on all positions, including job titles, reporting relationships, and team assignments. Accuracy at this stage is crucial, asan out-of-date or incorrect chart can lead to confusion rather than clarity.

Verify information with department heads to ensure that you capture both formal reporting lines and any dotted-line relationships that may exist within your organization. This collaboration helps identify any recent changes that might not yet be reflected in official HR records.

Choose a format

Select a chart type that best represents your organization's actual structure. Traditional hierarchical charts work well for many companies, but matrix or divisional formats might better serve complex organizations with multiple reporting relationships.

Consider using tools that allow for easy updates and sharing across the organization. Modern process mapping and diagramming software can make your chart more flexible and accessible than static documents.

Input data and arrange elements

Use your chosen platform to create boxes representing positions and lines showing reporting relationships. Arrange these elements in a logical flow that clearly communicates the organizational structure.

Confluence whiteboards offer an intuitive canvas for creating organizational charts, with drag-and-drop functionality that makes it easy to position elements and adjust relationships. The collaborative nature of online whiteboards also allows stakeholders to contribute to and refine the chart in real-time.

Label and fill in each section

Add names, titles, contact information, and any other relevant information to each position box. Consider including brief role descriptions if the chart will be used for employee directories or onboarding purposes.

Maintain visual consistency throughout the chart by using the same format for similar positions and relationships. Consistent color coding for departments or levels can enhance readability and help viewers quickly identify different organizational units.

Review, share, and update

Before finalizing your chart, ask stakeholders to review it for accuracy and completeness. Make necessary corrections based on their feedback to ensure the chart reflects your current structure.

Share the completed chart through appropriate channels, whether it’s your company intranet, knowledge sharing platform, or physical displays in office spaces. Establish a regular update schedule or process for capturing organizational changes as they occur.