How to Create an Org Chart (And Why You Absolutely Need One)

An organization without an org chart is like a wedding reception without a seating arrangement — it results to chaos. So, let’s talk about how you can create an org chart for your business. 

 

Whenever business owners come to me frustrated about being overworked…

I ask to see their org chart. 

Now, more often than not… it’s either their org chart is severely outdated… or they don’t have one at all. 

And that tells me everything I know about why they’ve been drowning in work!

Take the case of Christina, one of our clients. 

When we first met a year ago, she was so obviously stressed. See, she didn’t have an org chart for her business. That meant her entire team — all 30 people — were reporting directly to her. 

No wonder she was overwhelmed!

So, Christina and I sat down and worked on her org chart. From having 30 people directly reporting to her… we cut it down to five. 

Cue the sigh of relief. 

Now, you don’t even need to know Christina or her business… to feel how much weight was lifted off her chest after we did this… right?

So, imagine if we did the same thing for your business. 

 

5 Steps to Creating a Solid Org Chart

 

No matter what stage your business is in… an org chart can help you manage your operations better. 

After all, you have better things to do with your time… than micromanage every single person in your organization. So, let’s create an org chart that will free up more of your time… while streamlining your business operations. 

Here are the steps to doing just that: 

 

Step #1: List down everyone in your organization. 

Take out a pen and a piece of paper.

Write your name in a big circle on top of it. Then, below your name, list every single person who works for you in your business. Write their names in circles, too. 

After that, draw lines connecting each person to the person they’re currently reporting to. 

Our goal here is to draw your org chart as it exists today. So, for every name bubble on your paper… identify who it is they’re reporting to. Who gives them tasks? Who checks their work or output? Who do they come to whenever they have questions? Draw a line connecting them to that person. 

Once you’ve done this for everyone on your team… check how many people are reporting to you at present. 

This is how you find out if you’re in the same situation Christina was in. 

If you are… don’t worry. We can do something about it. We can lessen the number of people you’re directly managing, thus decreasing your workload… and your stress levels. And we can do that by moving on to the second step: 

 

Step #2: Decide who should be reporting to whom instead

 

Take another piece of paper. This time, we’ll start creating your new org chart. 

Again, write your name right on top.

Then, depending on the size of your organization… write anywhere between one to five names directly below yours. These will be your new team leaders. So, make sure you pick people whose leadership skills you trust. Because when you’re done with your new org chart, they are the ones who’ll be taking in direct reports and leading teams… while reporting directly to you. 

Once you’ve identified your new team leaders… distribute the rest of your team under them. Decide who should be reporting to whom… and why. 

 

Step #3: Initiate the transition by talking to your new team leaders

 

Now that you’ve decided what you want your new org chart to look like… it’s time to initiate the transition. 

I know you’re probably excited to announce the new positions and possible promotions… but don’t make a company-wide announcement just yet. 

Instead, have private conversations with your new team leaders first. See, you want to make sure that they’re actually willing to take on managerial or supervisory roles in your team. Not everyone will be. 

So, talk to them one by one and ask how they feel about leading a team of direct reports. If all of them are fine with the promotion, then great! But if someone says they’re not yet ready to take on a leadership role, you might have to adjust your org chart somehow. Perhaps give them one direct report for now… or otherwise identify a different team leader who’s more willing to step up to the plate. 

 

Step #4: Test your new org chart

 

Once everyone’s on board with it, test your new org chart by implementing it. Take the time to see if the people you’ve put in supervisory or management positions are a good fit for their new roles. And make sure the rest of your team is comfortable with the person they’re now directly reporting to. 

Keep in mind that there might be some birth pains with implementing your new org chart. People will sometimes forget that they’re no longer supposed to come directly to you for any questions or to have their work checked… but that’s okay. That’s what the fifth step is for. 

 

Step #5: Strictly implement your new workflow. 

 

Your new org chart is supposed to keep you less busy, less stressed, and less overworked. But it will only work when strictly implemented. So, don’t let people other than your team leaders come to you for daily work concerns. Implement your new workflow by reminding people who they should be reporting to. 

And likewise, avoid micromanaging people on your team. Let your new team leaders handle these operational concerns, and allow yourself to just focus on big-ticket stuff. 

That’s why your org chart exists, anyway. 

Free Up More of Your Time With an Org Chart

A strategically-planned org chart changes the game for your business. 

It levels up accountability and efficiency… because it gets you out of the weeds of your business. 

That’s why I always tell all my clients to create an org chart that works for them… especially if they ever dream about growing or scaling their business. 

And that’s what I want you to do, too. 

Now, if you run into trouble while creating or implementing your new org chart, I’m here to help. 

Just book a call here: www.stacytuschl.com/call and let me know what I can assist you with.