Why Every Team Needs Org Charts

newsletter articles Jun 20, 2025

If you run a team or a business, chances are you know who does what. But the real question is, does everyone else?

Too often, people aren’t clear on who they report to, who their teammates are, or who’s responsible for what. And if that’s the case, things will start slipping. Frustrations build, accountability fades and unnecessary confusion creeps in.

That’s where an org chart comes in.

What a Good Org Chart Does

It’s not just a piece of admin. A good org chart serves three key purposes:

1. It shows clear reporting lines

Every person in the business should know exactly who they report to. If that’s unclear, communication breaks down. Work falls between the cracks. And no one really knows who’s responsible for making decisions.

An org chart eliminates that. 

2. It highlights team gaps

When you can see your team mapped out visually, it becomes much easier to spot issues. You can ask:

  • Do we have the right balance of roles?

  • Are there gaps we need to hire for?

  • Are responsibilities unevenly spread?

Org charts help you step back and see the bigger picture - that’s when you spot things you wouldn’t otherwise notice.

3. It surfaces management risks

Anyone with more than five direct reports has too many.

You cannot effectively manage a team if you are trying to support, develop and lead 10 or 12 people at once. Even your best managers will eventually struggle.

In fact, one of the biggest mistakes you can make is giving someone too many people to manage. It's easy to assume that because they're good, they can handle more. But it almost always backfires. 

What You Should Do Next

If you don’t already have one, make it a priority to build an org chart for your team.

  • Start with who reports to who

  • Add titles and responsibilities

  • Flag anyone with more than five direct reports

  • Ask yourself, does this structure make sense?

If not, make adjustments. You might need to redistribute responsibilities, elevate a team member into a leadership position or plan your next hire.

Whatever you do, don’t leave it to guesswork. Because when structure is unclear, performance always suffers.

Final Thoughts

An org chart isn’t just about hierarchy. It’s about clarity, communication and making sure your team is set up to succeed. Start with the structure then build from there.

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