Org Chart Builder: What It Is, How to Build One, and Best Practices

An organizational chart is the backbone of any company. These diagrams map out the lines of authority within a business and clearly define everyone’s roles and responsibilities. But creating and updating org charts is a long, tedious process for HR professionals. 

That’s where an org chart builder comes in! These powerful tools simplify the process and save valuable time and energy with every org chart update. Let’s dig into everything you need to know about org chart builders, from what they are and how to use them, to key features to look for when upgrading your software.

What Is an Org Chart Builder?

An org chart builder (or organizational chart builder) is exactly what it sounds like: software that automatically builds organizational charts! It takes the data stored in your HR systems and transforms it into intuitive, error-free charts in seconds. Org chart builders come with a library of time-saving features and customization options, allowing you to create a chart tailored to your company’s unique needs.

Why Every Organization Needs an Org Chart Builder

No matter the size of your organization, an org chart builder is essential. Using software to create your chart saves time, streamlines operations, and increases your HR team’s efficiency. 

Comprehensive org chart builders support: 

• Clarity: If questions regarding workloads and decision-making authority arise, your org chart becomes the go-to resource. By including information like team roles, project responsibilities, and daily tasks, you clear up confusion and prevent conflicts. 
• Communication: Your org chart builder supports clear communication ahead of restructuring. The tool can create department-specific charts you can edit to reshuffle colleagues, identify redundancies, and develop stronger teams. 
• Onboarding: When new hires join the company, the org chart is* their first point of reference for how things work around the office. The chart should lay out each department, team, and the reporting and collaborative relationships within them. 
• Planning: Org charts simplify workforce planning by showcasing lines of authority and identifying top candidates for high-level roles. Plus, you can identify areas where employees require additional training and support to prepare for advancement. 

Discover how the 9 Purposes of Org Charts can drive business success.

Common Ways to Create an Org Chart (and Their Limitations)

When learning how to build an org chart for the first time, manual tools are typically the first choice, but they come with some obstacles. Let’s go over three of the most common methods to use.

Spreadsheets 

Microsoft Excel and Google Sheets are the top starting points for org charts, with features like row- and column-based organization, built-in chart editors, and org chart templates. While this approach may work for small teams, creating and updating your org chart from excel data can create headaches for growing teams. 

With these charts, HR leaders can expect: 

• Time-consuming manual rework 
• Outdated and inaccurate charts 
• Incomplete team layouts
• Confusion surrounding workforce planning

PowerPoint 

HR leaders seeking more visual control often turn to Microsoft PowerPoint’s org chart templates. However, building an org chart in PowerPoint comes with major roadblocks like: 

• Extensive manual input and editing
• Fragmented views across multiple slides 
• Rigid, traditional formats that don’t allow for complex or layered teams
• Multiple redesigns to accommodate growth

Visio 

Rounding out Microsoft’s offerings is Visio, a dedicated org chart builder. This tool comes with tons of templates and an automated Organizational Chart Wizard for building organizational hierarchies. However, creating an org chart in Visio has some limitations. Visio only integrates with Microsoft tools and requires a data export to share charts with non-Microsoft users, creating a huge version control blind spot.

Without version control, HR leaders are unable to: 

• Ensure everyone has up-to-date org charts
• Track chart changes over time
• Understand who made updates and when
• Prevent inaccurate charts from circulating
• Share old charts to illustrate the company’s history

When Should You Upgrade from Free Tools?

Free org chart tools can get the job done, but only for specific stages of your company’s growth. Watch for these three key signs to know when it’s time to upgrade to an automated org chart builder. 

Organization Size & Growth Needs 

Whether you’re expanding a few departments or acquiring a new company, rapid growth is a significant indicator that you need to upgrade your org chart software. Large companies require the flexibility that comes with scalable software, as it enables quick edits across the board. 

Org charts help visualize your organization’s current state and plan for the future. Using your automated org chart to simulate new structures with additional teams is one of the best ways to plan your growth. 

Complexity of Roles & Departments 

Some organizations can’t utilize standard top-down formats and require dynamic charts to reflect complex roles and relationships. Upgrading your org chart builder empowers: 

• Matrix organizations
• Cross-functional teams
• Highly collaborative industries 
• Hybrid and remote work models 

Frequency of Change 

One of the most significant benefits of automated org chart builders is the real-time data connectivity. These tools integrate with your existing systems to provide a live view of your organization and will instantly adapt to staffing changes in your HR software. If your team experiences high turnover, frequent hiring and promotions, or regular restructuring, an automated program can take the stress out of constant chart updates. 

What to Look for in a Professional Org Chart Tool

Ready to start your search and build an org chart? Ensure your top choices have these four important features before making a decision.

Automated Data Syncing 

Data syncing is a game-changer for HR teams. Org chart builders connect to your existing HR systems to: 

• Automatically update your chart to reflect staffing changes
• Sync new and existing employee data 
• Prevent typos and errors when creating charts

Drag-and-Drop Editing 

Intuitive drag-and-drop editing enables easy structural changes without requiring a total redesign, making major org chart updates a breeze. You can quickly add or remove employees, shift colleagues to different teams, rearrange departments, and alter reporting relationships throughout the company. 

Permission Controls & Collaborative Features 

When it’s time to share your org chart with the rest of the company, prevent version issues and incorrect data with robust permission controls like: 

• Role-based editing access 
• Shareable view-only charts
• Password-protected master charts 

Plus, collaborative features allow multiple teammates to work on the document simultaneously, speeding up feedback workflows and streamlining the final approval process. 

Integration with HR Systems 

Make sure your chosen org chart builder supports seamless integration with your HR and payroll platforms. Always check import and export capabilities to ensure you have options when pulling data from your org chart. 

Best Practices for Building Effective Org Charts

Once you’ve picked your org chart builder, it’s time to put it into action! Here are some best practices for crafting powerful org charts for your team:

• Start with Leadership and Work Down: Simplify your org chart design with a top-down approach. Begin with executives and flow downward to upper management, team leaders, and individual employees. Be sure to add spots for temporary roles, like interns, contractors, or freelancers.
• Use Consistent Formatting and Titles: Maintain a uniform look for each entry and utilize standardized job titles to communicate seniority and authority. Give decision-makers titles like Manager or Director, not Specialist or Coordinator. 
• Make It Shareable and Easy to Update: Features like link sharing, embedding, and live collaborative editing empower teammates to build effective org charts together. 
• Update Your Org Chart Regularly: Establish a review schedule to help keep your chart useful and accurate, whether that’s once a quarter, biannually, or every other month. This should be in addition to updates after staffing changes. 

Learn more about how org charts help you Manage Positions in a Company Chart.

How to Build an Org Chart: Next Steps to Pick Your Software 

With so many options out there, it can be difficult to choose the right org chart builder for your organization. Start with these two tips to eliminate the overwhelm and hone in on your ideal software. 

Evaluate Your Needs Before Choosing a Tool 

Your org chart builder makes a difference! You may require software that goes beyond just building charts or a tool that works with multiple operating systems. 

What does your organization truly need? Think about: 

• Company size
• Number of employees, teams, and departments 
• Chart complexity
• Cross-team collaboration
• Update frequency

Try a Free Tool First 

If you’re unsure what will work best for your organization, start with a free tool. It’s a great way to test out different features and org chart formats to understand your team’s unique needs. From there, you can upgrade to paid, automated tools to create your company’s chart. 

Elevate Your Workflow With an Automated Org Chart Builder

Automating your org charts cuts manual updates, reduces errors, and keeps leadership aligned with a current, shareable view of the organization. With integrations to your HR systems and version history, an org chart builder scales as your team grows.