10 Jul How to Create an Organization Chart for Your Business
Have you ever considered creating an organization chart for your business or nonprofit? It can seem like a daunting task, especially for business owners who prefer grand visions and dreams over the nitty-gritty details.
An organization chart is beneficial because it lays out responsibilities and accountability within your business. At a quick glance, your organization chart will tell you…
- The title of the position in charge of a specific work package
- The primary function/responsibilities of that specific work package
- The name of the person responsible for the work package
- The authority and accountability for the work package
For example, I have an employee in charge of all marketing/graphic design for my business and nonprofit. My organization chart clearly tells the employee (and me) the details of this position. I label the chart with the title of the position, the employee’s name, the main responsibilities, and this employees authority.
When your organization chart is set up successfully, there should never be confusion about a person’s job description, job duties, line of authority, or company title.
Are you convinced that creating an organization chart is a great idea for your business? I hope so. The word ‘organization’ can get a bad rap, but it’s necessary for highly functioning, successful companies.
How to Create an Organization Chart for Your Business
Your organization chart is the language of your organization. To make sure the is language clear to other people, the language of your chart must be consistent. To communicate consistently, set up sensible standards and stick with them.
Before we begin, it’s important to know that a workgroup is sort of like a department (marketing, customer service, human resources, etc.). A function is a duty within a workgroup (social media, graphic creation, hiring and firing, etc.).
1. Show the date that the chart was created and updated.
Place the date in the top right-hand corner of the chart. This way, when changes are made, your employees can easily know when the changes occurred. In addition, dating your chart makes certain that new employees are added promptly, as well as made aware of the organization chart.
2. Emphasize all company workgroups.
Place the individual workgroups of your company (marketing, social media, customer service, etc.) in large boxes at the top of the chart. Use a large font to mark all of the main workgroups of your organization.
3. Represent the employees that report to the workgroups.
There are specific employees that will report to each of these main workgroups. For example, you may have two employees that work on your marketing team. Write both of their names in medium-size rectangle boxes aligned horizontally under the correct workgroup box.
4. Show all functions necessary for the specific workgroups.
Now, each of the employees have specific functions. One marketing employee may be in charge of graphic design and content design. The second marketing employee may be in charge of email marketing and social media coverage. List all of the functions in smaller boxes under the medium-sized boxes from step 3.
5. Use thick lines to connect the boxes.
It may seem unnecessary to list this step, but this is key to remaining organized and keeping your chart clear and clean.
6. Show the position title clearly.
Next, show the position title of the person responsible for individual groups of functions.
7. No workgroup should have more than 5 functions under it.
In rare cases, a workgroup should have no more than seven. The boxes under your workgroups are the functions of the job, and no employee should be responsible for more than five duties. For example, your marketing employee cannot keep track of all social media, email marketing, graphic design, content creation, and blog upkeep. That is a lot of duties!
Keep the lines clear and clean to avoid misunderstanding. And always remember to reevaluate if your employees are feeling burdened.
8. There should be a job description for every employee.
Every employee needs a clear and defined job description. This job description will include their job title, their workgroup, their functions within the workgroup, and their line of authority.
9. There must be policies and procedures in place.
For every workgroup, there must be policies and procedures in place. Create a binder with all passwords, relevant procedures, systems, and business information. These binders will come in handy when you transition from one employee to another, or when you update your chart and need to review the functions of a workgroup.
Are you interested in creating an organization chart for your business? If so, consider downloading my FREE PDF handout with 7 questions that will make your organization chart even more effective. These are questions that make you think just a bit more about the many aspects of your organization, and will ensure that you organize your chart effectively – thus organizing your organization effectively.
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