The Org Chart is Queen

Mike Judge’s 1999 movie Office Space offers great insight into dysfunctional companies. The film opens with the main character being approached by several different managers he “reports” to. Each of them reminds him that he forgot to put a cover letter on his TPS report. It’s clear he’s aware of the mistake and wants to do better, but each manager feels compelled to point it out and provide a written explanation to ensure they aren’t held accountable for his oversight.

 

Do you have employees in your company with multiple managers? Do you have employees who, although they report to one person, have a “dotted line” to somebody else?

 

Most people understand how important communication is within any organization. Misunderstandings lead to far more problems than just hurt feelings. Duplicated work, lack of accountability, wasteful spending, and non-compliance are all symptoms of miscommunication.

As businesses grow, organizations develop informal ways of sharing information that are often unplanned, organic, and subject to change. This is a natural part of company growth: the more complex a company becomes, the more difficult it is to maintain informal communication channels without problems arising.

 

Of course, those of us who like to write policies often turn to drafting communication procedures. But even with something as efficiency-killing as a formal written policy that is strictly enforced, you can’t completely prevent information from flowing organically through an organization.

 

Communication in an organization flows along two different streams. The first is through personal relationships. Some employees feel closer to certain colleagues and tend to share information with them, often even when it is confidential. The second is via chains of responsibility. Information naturally flows to those who need it. It can be circumvented or diluted, but in almost all cases, information will find its way to those accountable, much like water finding its own level.

 

The key to effective communication within an organization is reducing the friction between these natural flows of information and the structured processes needed to achieve company goals. In other words, organizations should strive to synchronize formal lines of authority and communication with the natural ways information moves within the company.

 

The most effective way to achieve this is through a well-structured organizational chart. A simple yet effective org chart, built around responsibility and accountability, groups employees with similar responsibilities together, fostering stronger connections between them. This, in turn, facilitates information flow along personal connections while channeling it productively.

 

A well-crafted org chart also streamlines the flow of information along paths of responsibility. The leader accountable for a given project or action naturally collects information about it. When the org chart reflects these lines of responsibility, it clarifies who is accountable for any given action, both good and bad.

 

When formal authority and natural information flow align, employees can easily determine who should be included in communications, who has the authority to make decisions, and who is involved in a project. As a result, the latest and most relevant information is almost always shared.

 

 

A clear org chart reduces stress for employees by providing clear points of contact for guidance, setting clearer expectations, and ensuring accountability.

As businesses grow, organizations develop
informal ways of sharing information that are often unplanned, organic, and
subject to change.”

With this in mind, it becomes clear why dotted lines on an org chart can be problematic. Who does the employee truly report to? Is that the same person who directs their daily efforts? What happens if one manager gives the employee instructions that contradict those of the other? Even slight differences in emphasis can create confusion and inefficiency.

 

The common response is: “Don’t you just assume the solid line is more important?” Yes, but then why have the dotted line at all? If the solid-line manager doesn’t have the time to monitor or support that employee, why are they managing them in the first place?

 

At its core, a well-documented and simple org chart helps shape the culture of a company. It reinforces the idea that information and authority should flow along the same lines. It allows employees to anticipate their manager’s reactions, empowering them to take risks and solve problems at the lowest level possible.

 

Additionally, a good org chart strengthens the relationship between managers and employees. Employees know who they report to, understand their manager’s expectations, and, most importantly, can build trust over time. These factors contribute to a strong company culture.

 

 

Think back to that opening scene in Office Space. If you were that employee, at what point would you tune out each of your managers and stop listening? When multiple managers are applying pressure, how long before you stop caring what your solid-line manager thinks? When do you give up? In the movie, it happens almost immediately in that opening scene—and in real life, it happens just as fast.