People Manager
May 7, 2021

How to Determine the ROI of an Org Chart

by 
Justine Kim

You might be interested in investing in an organizational chart for your company, but finding that you’re having trouble building your case. One place to start is our 8 Step Guide to Selecting Org Chart Software. Once you decide what you’re looking for, start to build your ROI case. To determine the ROI of an org chart, focus on how to provide the most organizational value across all of your organization’s departments/teams.

We’ll cover the following:

  • The definition of an org chart
  • How to consider org chart software cost vs. value
  • How to ensure that your org chart provides values across all departments

What is an org chart?

Organizational charts, also often referred to as hierarchy charts, are visual representations of an organization’s structure and how each individual interlinks with another. At the very least, an org chart will display names and titles with reporting lines to illustrate reporting relationships. However, org charts are starting to evolve past simple boxes and lines. An org chart that delivers on investment should contain the following information:

  1. A headshot
  2. Title
  3. Company
  4. Department
  5. Contact information
  6. Direct reports
  7. Indirect reports
  8. And a profile link


Components of a modern org chart


Employees should be able to take one look at the org chart and quickly understand how they relate to their peers, leaders, and more. Most importantly, it should be a tool that employees can leverage to better understand and navigate their organizations. 

Org chart software cost vs. value

Traditionally, org charts were mainly used by Human Resources and business leaders in order to maintain an accurate picture of their organizations, and it was up to HR to manually update the org chart. Often resorting to creating org charts within PowerPoint or Excel. However, the modern org chart, and one that delivers on its investment, is one that should be used and provide value across all departments. 

[Related article: What Can the Modern Org Chart Do For Your Employees?]

There’s no cut and dry ROI equation that can be used to calculate the value an organization will see relative to the cost of the org chart software, however, there are some logical assumptions and some clear organizational benefits to consider. 

While manual org chart software is relatively inexpensive, it adds little value to the organization as a whole. The reverse is also true, the better the functionality and useability of the org chart software and the easier the access by employees, the more it will be used and the higher the positive impact will be on the organization. [Related article: Is Your Team Still Manually Updating Your Org Chart? There’s a Better Way]


The ROI of an organizational chart


The value you should expect from org chart software

Assuming you purchase org chart software that meets the majority of your requirements, you can expect some significant benefits. The biggest of which is employees working better together. Particularly when the workforce is distributed and partially (or fully) remote. But let’s think about how org chart software that includes a powerful directory search with deep profiles can impact each department.

To provide the most value, an org chart should offer a key use case across each department of your organization. You can think through this at your own organization by using the chart below. Write down the name of someone from each department who would benefit from having a complete org chart and share this information with them. 


Org chart benefits by different departments

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The larger the organization, the more important it is to have powerful solutions like modern org chart software that can help your people feel connected to their colleagues and improve their work experience. In fact, we’ve found that users of modern org chart software access it on average 3x per week! 

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Users of a modern org chart software accessed it on average 3x per week on web and 1.5x per week on mobile


When org chart software also saves time and drives revenue, it just makes sense to invest in the most powerful org chart software you can get. Start with ensuring that each department in your organization will gain value from an org chart and build your case from there. 

If you’re interested in learning more about the value of a modern org chart and how to buy one, check out our 8 Step Guide to Selecting Org Chart Software, or download it below!

Your 8 Step Guide to Selecting Org Chart Software

Organization charts help employees do their jobs. But what are the major considerations you should think about as you search for org chart software? Check out this guide for an overview of some of the major elements you should consider to select the right tool for your organization.
Download the guide
Tags:
People Manager
Collaboration
Communication
Digital Workplace
Employee Experience