A time comes in every company’s growth when fellow employees can’t simply shout to one another from across the room. As businesses expand -- to larger offices and distributed teams -- it gets harder and harder to know who does what within the company.
The Covid-19 pandemic accelerated this problem for many. Suddenly, without office interaction, teams become increasingly siloed and companies struggle to maintain their distinctive culture and create opportunities for serendipitous knowledge sharing.
Part of the challenge of navigating distributed teams is one of systems and tools. According to a BCG study, while individual and managerial tasks tended to get more efficient in the shift to remote work, collaborative tasks were actually less productive for most employees who were recently moved to a remote working structure -- particularly if they were dissatisfied with the degree of social connectivity at their company. In addition, a Gartner study found that 54% of HR leaders indicated that poor technology and/or infrastructure for remote working is the biggest barrier to effective remote working in their organization.
According to a BCG study, most employees found they were less productive at collaborative tasks after recently moving to a remote working structure
Serving as a mechanism to enhance communication and insights, org charts are one tool that can help optimise internal business processes while also creating opportunities for external collaboration with partners and other stakeholders.
What is an organizational chart?
Organizational charts are diagrams that display the hierarchy and structure in a company. It usually includes the work responsibilities, reporting relationships and contact information of employees.
How Organization Charts Can Help Drive Business Decisions and Strategies
- Identify missing skill sets to recruit the right talent
With the recent pandemic hit, companies have had to fast track digital transformation plans and explore new ways of working and doing business. Ensuring that the company has the right talent and skill sets is essential to allow the company to rapidly adapt and achieve its objectives. However, it can be difficult to identify the missing skill sets your organisation needs by looking at individual employees alone. By mapping these employees with an organisation chart, it helps to identify the current skill sets of your team; and allows you to benchmark against peers to determine the missing gaps in talent and skills you need to onboard to help your organisation achieve its objectives.
2. Encourages wider collaboration within the company
An organizational chart is a valuable tool for collaboration within a company, especially when it comes to driving key business strategies, identifying internal champions, and leveraging sources of program knowledge and expertise within the company. A detailed org chart allows for wider collaboration by helping employees to identify relevant teams and individuals to brainstorm with together, as well as leverage each other’s knowledge and experiences to solve business problems and remove any blockers.
3. Getting employee pay right
Improper employee compensation structures can have many negative impacts on the business, ranging from reduced workforce productivity and employee motivation to financial penalties and reputational damage for the employer. With the dynamic nature of the talent landscape, functions and roles in companies are changing at a faster pace than ever before and it is more challenging to know exactly how much to compensate employees to maintain market competitiveness. Using org charts to analyze compensation structures by roles and hierarchical level can help compare the skillsets of employees to industry standards in order to plan and set fair standards for salary compensation. While certain human resource information systems (HRIS) have internal compensation analysis as part of their solution, most businesses lack the budget or need for such robust compensation tracking. In this case, org charts and market maps can be a useful resource to help decision makers review current and planned talent development plans to ensure company talent progression and compensation is properly accounted for.
Is it the next Billion Dollar Opportunity for your Organization?
It is one thing to understand your internal company structure, the Billion Dollar Opportunity comes from understanding the organizational structures of other players in your industry. By monitoring and mapping out talent and leadership at other companies, executives in HR, Business Development, Corporate Development, and others can gain valuable insights by understanding future industry trends and key capabilities that other organizations are building, as well as identify relevant points of contact for professional engagement (for example, partnership outreach).
A well structured organizational chart with proper provisioning and access can serve a dual purpose as both an internal coordination and communication tool as well as a tool for building solid and successful external relationships.
Top tools you can use to create an Org Chart for your Organization
- LucidChart: Online Diagram Collaboration Software
Lucidchart is an online diagram software solution that helps users share ideas, information, and processes. The cloud-based solution allows teams to work visually and collaborate in real time while building flowcharts, mockups, UML diagrams, and more.
2. OrgChart: Organization Charting Software
OfficeWork Software’s OrgChart product helps organizations build org charts for the purposes of workforce planning. OrgChart’s software is priced based on the number of employees at the company, with annual contracts ranging from SGD$500-1000/yr to several thousand dollars annually.
3. (Launching Soon) Asavi: A market intelligence tool for talent and leadership teams
Asavi is a market intelligence tool for talent and leadership teams, on a mission to become APAC's leading resource for organizational insights. Asavi makes it easy for you to build your company org chart for free, and you can even customize the information that gets shared internally vs. externally. Sign up today to join our waitlist!
Asavi is a market intelligence tool for talent and leadership teams, on a mission to become APAC's leading resource for organizational insights. Sign up today to join our waitlist!