Do you know the power of a well-crafted organizational chart? This tool streamlines communication, enhances efficiency, and sets the stage for remarkable teamwork. Read 8 Figure Firm’s blog to learn more about designing an effective organizational chart.
What is an Organizational Chart
This tool can either offer a general overview of the whole law firm or narrow it down to an individual department or unit.
An organizational chart is a diagram that shows the structure of an organization and the relationships between the different people, departments, or jobs within that organization.
Benefits
Some benefits of designing an organizational chart include:
- New employees learn who manages certain processes at your firm.
- Managers can visualize how the workflows would work in the event of a leadership shift.
- It simplifies the process of explaining how a company works and how its roles are organized.
When to Use an Organizational Chart?
In New Hire Onboarding
Organizational charts are essential for the onboarding of new hires to help them understand their roles and responsibilities in the workplace. They provide a clear picture of who their manager is and who else is on their team so that employees can hit the ground running in the organization.
For Staffing Decisions and Resource Planning
They can be used when managers need to make decisions regarding resource planning and staffing. Since they offer a comprehensive view of an organization’s structure, they improve the efficiency of these processes.
They also help improve communication between employees and give a clear overview of who else is in the organization. Consequently, they help HR departments accurately assess whether the staffing levels are optimal and if any changes need to be made.
To Find Career Opportunities or Restructuring
Organizational charts enable managers to reorganize departments more proficiently and recognize potential progression paths for employees displaying excellence in their existing roles.
They also enable leaders to track their workforce evolution over time and comprehend individual roles and duties. This gives them the chance to make changes as needed.
Types of Organizational Charts
There are different types of organizational charts commonly used in organizations. We will examine the most common types, this way you can decide which type works best for your firm.
Functional
This type of organizational chart divides work and employees by specialization. It is a hierarchical structure that is usually vertical. Law firms can implement standardization processes to enable employees specialized in specific roles to work efficiently.
In functional structures, there is a specific chain of command where employees report directly to their active managers, who in turn report to the head of the organization.
Divisional
This organizational chart often divides work and employees by:
- Output (service)
- Market
- Region
The main benefit of this organizational chart is that decision-making authority is pushed to lower levels of the organization, enabling faster, customized decisions. This type of structure is beneficial for a law firm when the service base expands in quantity or complexity.
Matrix
A matrix combines functional and divisional structures to create a dual-command situation. In a matrix structure, an employee reports to two managers or supervisors who are jointly responsible for the employee’s performance.
In this type of organizational chart, one manager works in an administrative function, such as finance, HR, information technology, sales, or marketing, and the other works in a business unit related to service, customer, or geography.
Open Boundary
A recent trend in structural forms is to remove the traditional boundaries of an organization. This means that typical internal and external barriers and organizational boxes are eliminated, and all organizational units are effectively and flexibly connected.
In this case, teams replace departments, and the main idea is that the organization and suppliers work as closely together as parts of one company.
Here, the hierarchy is flat and a person’s status and rank are minimal. This includes top management and employees since they both participate in the decision-making process. Lastly, a 360-degree feedback mentality is common in companies that apply this structure.
Steps to Make an Organizational Chart
- Clearly define the purpose and scope of the organizational structure you are creating.
- Find out which information you need. The five essential components that form an organizational chart are job design, departmentation, delegation, a span of control, and a chain of command.
- Start creating your diagram! You can integrate multiple shapes and colors to distinguish roles and departments and add your company logo for a consistent brand alignment.
- Make sure to review it frequently to keep it up-to-date.
In pursuing organizational excellence, designing an effective organizational chart is a powerful tool to structure roles, responsibilities, and relationships, fostering a harmonious and productive environment for the entire team.
Speak to the Experts
At 8 Figure Firm, we know the importance and benefits of having an organizational chart in any business—our ONE.Coach program is designed to equip you with the tools you need to successfully design your law firm’s organizational chart and take your law firm to the top.
If you’re ready to take your law firm to the next level, register for ONE.Coach today. We’ll help you turn your law firm into a law business.
