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Why Org Charts are Useful for IT Startups


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Launching an IT startup is always going to be a risky move, but what if there were steps and tools you could use to help reduce the risks?

Chances are you’d embrace them with open arms, so the key is to be aware of what those tools are and bring them into the fold. One tool you may not be aware of in terms of what it is and how to best use it is organizational charts. On its surface, it may not sound like a big deal, but in reality, these can offer substantial help, guidance, and support to startups.

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Let’s take a look at why organization charts are useful for IT startups, so you can embrace them and start reaping the rewards.

What is an Organizational Chart?

Before you can look at the ways an organizational chart may benefit your startup, it’s important to understand what it is. Think of it as the roadmap for your company that lays out the structure, the chain of command, various departments, and interactions/connections they have. It acts as a visual diagram that is easy to follow and make sense of. 

For the organizational chart to be effective, everyone in the company should have access to it at all times. It can be included in any welcome or training package when hiring new staff members.

There are Different Types of Organizational Charts

It’s also important to note there are different types of organizational charts meant to reflect different business structures. If your startup is more of a collaborative effort where you don’t have a clear chain of command and hierarchy in place, then a flat organizational chart is ideal. This is often described as a horizontal organizational chart because everyone is on the same line. No one is below or above others, except the CEO or business owner. 

If you prefer the more traditional hierarchy structure where there is a chain of command, then the hierarchical org chart is ideal. Employees can refer to the chart whenever they have a question that needs to be directed to someone higher up. 

The org chart also needs to show professional relationships between each department using lines. If a line connects, then you know there needs to be communication and work shared between the two.

It Can Help Provide Direction for Startups

Because there is so much on your plate as a startup it’s easy to feel overwhelmed. Having a clear chain of command or business structure that is laid out in a comprehensive chart will provide direction. Think of it in terms of aiding productivity and workflow. If this is your first startup, having that blueprint is even more important so that you stay on course and stick to the structure and plan laid out.

Understand Each Person’s Responsibilities

The org chart contains many key data which are the person’s name, job title, what department they fit into, and where they are in the structure. But another important detail that can be included in the person’s role and responsibilities. What do they do at the company? What specific tasks, issues, and processes are they responsible for? Again it goes back to making communication and workflow smoother as everyone knows who is responsible for what.

Entrepreneurs have the hope of watching their company grow and enjoy success, which will likely mean more people need to be hired, more departments may be necessary, and the structure evolves. Updating the org chart to reflect this growth is extremely important, not just for the business owner, but for all company employees.

Where are the Gaps?

Even with the best efforts there are bound to be gaps and missing links within the org chart. Having it laid out in chart form makes these gaps much more noticeable so that you can address them promptly. It may be that one department is grossly understaffed and another is over-staffed, or there are missing links in terms of communications and working relationships between departments. 

The faster you can identify issues such as these, the more effective you will be at remedying them.

Org Charts Need to be Seen as a Necessity

There’s no question that org charts shouldn’t be seen as optional but rather a necessity for startups who want to be sure they have a solid structure that all staff is on-board with and can refer to.

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