Why your org chart is more powerful than you think

Your org chart might be one of the most underutilized tools in your business. Most people think of it as a static diagram—boxes, lines, job titles. But in reality, a well-built org chart is a strategic engine.

Whether you’re scaling, restructuring, or just trying to run more efficiently, your org chart should be evolving with you. This blog explores how to unlock its full potential and why doing so could be the smartest move you make this quarter.

1. What is the real purpose of an org chart?
2. The hidden value of an org chart
3. What does an organization chart display?
4. Cultural fit and how to protect it
5. Right people, right seats: How structure drives performance
6. Create an org chart
7. Free resource: Org chart template or right person/right seat tool
8. When and how to update your org chart
9. Final thoughts

What is the real purpose of an org chart?

If you think your organization chart is just a bunch of boxes and job titles, you’re missing the point.

An org chart is a powerful tool for creating clarity, structure, and accountability in your business. It answers the essential questions:

• Who does what?
• Where are the boundaries?
• Who is ultimately responsible?

Without it, business owners end up wearing all the hats—and so do their teams. When nobody knows who owns what, everybody touches everything, creating confusion and killing accountability.

The hidden value of an org chart

A strong org chart doesn’t just clarify roles—it creates ownership, identity, and future focus.

When someone knows what seat they own and what’s expected of them, they can show up differently. They bring confidence, focus, and purpose to the table. It also helps people lean into their natural genius, not just their job description.

But when roles are vague and “everyone is responsible for everything,” that really means no one is responsible for anything.

Example:

Imagine a Navy ship where every crew member is “responsible for everything.” Chaos would follow. Who’s steering? Who’s handling communications, maintenance, or food?
Things might still get done—but at what cost? The ship will drift off course, vulnerable and inefficient, instead of being on-mission and moving forward.

What does an organization chart display?

Here are five core things your org chart should clearly communicate:

1. Accountability: Who owns each role and responsibility?
2. Hierarchy: Who reports to whom?
3. Structure: How are roles divided by function (marketing, finance, operations, etc.)?
4. Capacity: Are responsibilities realistic for one person?
5. Alignment: Does each seat align with your business goals?

Some companies also include time allocations for leadership team members. For example, if you’re wearing multiple hats, how much time (as a percentage) are you truly spending in each seat? That’s a good gut-check for capacity gaps.

Example: If there are six leadership seats, and you are responsible for all six, you’re only allocating roughly 18% of your time to each role. Inversely, if you dedicate 100% of your time to one seat, you neglect the other five. This approach is not sustainable and your business will not grow this way. You’ll just end up burnt out and stalled.

Cultural fit and how to protect it

Culture matters more than you think. In fact, I believe it matters more than performance.

If someone isn’t aligned with your company’s core values, you’ll feel it, usually through friction, disunity, or high turnover. One high-output, low-trust team member can wreak havoc and undo the work of three solid teammates.

How the Navy ranks trust

The Navy SEALs know this better than almost anyone. They use a simple two-axis chart to evaluate teammates based on performance and trust. Surprisingly, they would rather have a low performer with high trust than a high performer with low trust.

Why? Because trust is the foundation of every mission. A high-performance, low-trust person may deliver results—but they often leave damage in their wake.

This model is a perfect reflection of what happens in business, too. You can teach skills. You can train performance. But if someone undermines trust, they undermine the team.

How to define your culture

Start with your core values. Brene Brown has a great exercise in Dare to Lead to help individuals define theirs. I recommend doing this at the company level too. Reflect on past high performers: What made them stand out? That’s your cultural blueprint.

Right people, right seats: How structure drives performance

You’ve probably heard the phrase: right people, right seats. But how do you know if someone’s in the right seat?

Start by defining what your business actually needs. Then match your team’s strengths to those needs.

One of the best tools for this is Working Genius. It helps identify what energizes and drains people, and you’d be surprised how often that doesn’t align with their current role.

Example: Someone with a “tenacity” genius loves getting things done. They’ll drown in a visionary seat that’s all about idea generation. That’s not a failure—it’s misalignment.

Don’t judge a fish on its ability to fly.

Signs someone is in the wrong seat:

• They’re constantly frustrated or slow on tasks
• They’re not energized or are burning out
• Their “love list” is short; their frustration list is long

Signs someone is a great performer but a bad cultural fit:

• High output, but always causing interpersonal issues
• Pushes against core values even if unintentionally
• Damaging trust, which is the lifeblood of culture

Create an org chart

Now that we’ve covered the purpose, value, and foundational needs of an org chart, it’s time to take action.

The best way to begin is by using a virtual org chart that’s easy to update and always accessible. Here are a few tools to consider:

• Bloom Growth
• Workleap
• Lucidchart
• OrgWeaver
• Miro

Once you’ve picked your tool, you’re ready to build or refine your org chart.

Free resource: Org chart template

When and how to update your org chart

You should revisit your org chart at least quarterly, and definitely after any major staffing changes.

Think of it like realignment.

• Is everyone still in the right seat?
• Have your business goals shifted?
• Do you need new seats or need to retire some old ones?

If you don’t update your chart regularly, you risk outgrowing your structure before you realize it. And when you outgrow your structure, you outgrow your results.

Final thoughts

An org chart may seem unnecessary when you’re small or when things are going well. But as you grow, the lack of structure will catch up with you.

Remember your North Star, and ensure your organizational chart is built to get you there.

If you liked what you read and want to explore how a business coach can help you grow your company, book a free Discovery call with me.