In SMEs, organizational charts are often unclear and not well defined, and that is if they even exist! If it happens that the roles and responsibilities of each employee are somewhat blurred, well the results could also be blurred!

But why is an organizational chart so important, although everyone knows who does what?

An organizational chart creates clear roles and identifies responsibilities for everyone. If the roles in your organization are not defined, who is responsible for what? Whom do employees report to? Whom will they see in case of problems or questions? And this is valid for both your employees and people outside of your company. Who will evaluate them and give them feedback? Who takes care of what process or aspect of your business?

It is even more complicated if you have a structure where a person reports to 3 people! Everyone takes care of everything! It’s a little cacophonic don’t you think?

When everyone takes care of everything or nothing, it may happen that you think that it is the responsibility of others and that some things fall between the cracks.

Once your chart is in place, make sure to give the responsibility of following it to someone. Usually it is human resources that have this responsibility. Update it as soon as you have staff changes. Share it with your employees so they understand the structure of your business. Give and explain it when welcoming a new employee.

Review it strategically regularly, for example once a year. Ask yourself if the structure is still correct or if you need to make changes.

With an organizational chart, your people will understand and have the information needed to know how their work is important to the business. Your employees will find meaning in their actions within your company and in relation to other employees.

It is also a basic support and prerequisite for the proper management of human resources.

An organizational chart also allows planning of replacements, understanding the role of each. And it also helps improve communication in your business.

Do not be deceived by telling yourself that you do not need an organizational chart and that everyone knows who does what and what to do! Lack of formalization in an organization should not be seen as a source of flexibility!

In addition, unclear roles and unclear responsibilities are all factors that create little incentive for engagement and will increase turnover in your company.

Finally, having a clear organizational chart will serve as a basis for you to pursue your strategic planning.

If you need help defining your organization chart, contact us! Best of success!