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The Importance of Organizational Charts for your Business

Does your Company have a current and up-to-date Organizational Chart? If so, do you utilize that Org Chart to the fullest extent, using it for current and future staff planning, restructuring, talent management, and succession planning? Odds are this isn’t the case. Org Charts are an excellent tool that can be used to illustrate hierarchy and relationships between people, departments, and/or divisions within a business. While many Companies have an Org Chart tucked away in a file, rarely to be seen and likely not updated for several months or even years at a time, EctoHR finds that maintaining an accurate Org Chart can be a valuable tool to aid in improved business planning. Depending on the industry, size, and culture of your business, there are many factors to consider when creating a serviceable Org Chart. Here are some important things to remember:

  • There are various types and styles of Org Charts. While a simple, hierarchal Org Chart may be a good fit for some businesses, other Companies may choose to utilize a more in-depth, functional Org Chart, to display things beyond hierarchy, such as work or process flow, departments, divisions, “dotted-line” reporting relationships, and “up-and-coming” positions.
  •  In a high turnover environment, it can be difficult to keep up with changes in staff on the Org Chart. Members of management and/or HR should plan for quarterly updates to stay on top of these fluctuations.
  •  Org Charts are one of the simplest tools to utilize when beginning the momentous, but extremely important task of talent management and succession planning. Producing an accurate Org Chart should be your first step in evaluating current staff, identifying talent gaps and/or areas of weakness, and planning for the future.

EctoHR utilizes special programming and expertise to create Company Org Charts for many of our clients as part of our talent management processes. If you have questions on how we can help your Company, contact Colleen Richards via email at colleen@ or by phone at 810.534.0170.

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