Many organizational charts are not proactive as they should be instead they are reacting devices. Most are just a bunch of boxes with lines drawn to show everybody who does what. Then when this changes, you add dashed lines show how it used to be. This is not a good organizational chart!

Have you ever seen a Fortune 500 Org Chart? Well, it reflects where a business wants to go, rather than simply reflecting how it is now. You want to show that managers report to the vice president. You want to show that the programmers report directly to a project manager and so on.

Many businesses fail to realize the full potential and value a chart can have. They are also a highly effective tool for workforce modeling and scenario planning. If they are utilized to their fullest extent, organizational charts provide managers with information they need to make decisions. They provide a framework for change and measuring the financial and operational effects. They also help to communicate structural and operational information to all of its employees.

The ability to visualize the company structure is one of the most important activities for managers because it allows them to assess quickly the organization’s ability to meet current and future goals. Like requiring IT Sales leads or company profiles that are given out to business associates both of which help increase profits as well as free corporate profiles about competitors.

This entry was posted on Thursday, November 27th, 2008 at 10:20 pm and is filed under Business, Marketing. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.