Org Chart Software – How to Choose
What is Org Chart Software?
An organizational chart, or org chart, is a visual representation of a company's reporting structure. It shows the relationships between employees, departments, and positions within an organization. Org chart software is a tool that helps businesses create, manage, and share these charts.
Why Use Org Chart Software?
Org chart software offers several benefits over traditional methods of creating organizational charts, such as using spreadsheets or drawing them by hand.
Here are some reasons why businesses use org chart software:
- Efficiency: Org chart software automates the process of creating and updating org charts, saving time and effort.
- Accuracy: Org chart software reduces the risk of errors that can occur when creating charts manually.
- Flexibility: Org chart software allows businesses to reorganize and update their charts as their organization changes.
- Collaboration: Org chart software enables multiple users to work on the same chart simultaneously, making it easier to collaborate with colleagues.
- Communication: Org charts help employees understand the structure of the organization and their place within it, improving communication and transparency.
Find the Best Org Chart Software
Important Features
When choosing org chart software, consider the following features:
- Data-driven: Look for software that allows you to import data from your HR system or your existing spreadsheets of employee data to create org charts automatically.
- Charts from scratch: Choose software that lets you create org charts from scratch. Sometimes you need to create a new chart to see what is possible.
- Unlimited charts: Ensure that the software allows you to create as many org charts as you need.
- Unlimited employees: Look for software that can handle large numbers of employees without limitations.
- Unlimited download and distribution: Choose software that allows you to download and distribute org charts without restrictions.
- Infinite canvas: Consider software that offers an infinite canvas, allowing you to create org charts of any size.
- AI-powered org chart layout: Some software uses artificial intelligence to automatically lay out org charts. AI is critical to layout complex team structures.
- Customization: Look for software that allows you to customize the appearance of your org charts to match your brand or style.
- Data import: Ensure that the software can import data from your HR system or other sources to create org charts automatically.
- Export options: Choose software that allows you to export org charts in various formats, such as PDF, PNG, JPG, or SVG.
Advanced Features
You should look for software that delivers solutions to problems as your organization grows and changes.
Unlimited reporting relationships (multiple managers)
Reporting relationship (the line between two employees) is a critical feature of org chart software. Some employees report to more than one manager. This is common in matrix organizations.
Many org chart software applications limit the number of reporting relationships an employee can have. This limitation can make it difficult to create accurate org charts for organizations with complex structures.
Other hierarchy charts
Org chart software should support other types of hierarchy charts. The right application can generate company structure charts that show ownership and governance relationships.
Restructuring tools
Org chart software should provide tools to help you reorganize your organization. These tools can help you move employees between departments, change reporting relationships, and update job titles.
Many applications are tied to the original data source. This limitation can make it difficult to explore different scenarios for reorganizing your teams without affecting your HR system.
Link data
Almost all org chart tools do not allow you to add data to the line connecting a manager and a direct report. This limitation makes it difficult to add information about the relationship between the two employees.
Problems with org chart software
Image-based org chart software
Many org chart software applications create org charts as images. This limitation makes it difficult to edit the chart, share it with others, or integrate it with other systems.
Org chart software built into HR software
Many HR software applications include org chart functionality. This limitation makes it difficult to use the org chart software independently of the HR software.
Org chart software built into other software
Many applications include org chart functionality as part of a larger suite of tools. This limitation makes it difficult to use the org chart software independently of the other tools.
Price of the best org chart applications
Price is critical. It can be difficult to figure out how much a particular application will cost. Some applications charge per user, while others charge per chart. Some applications offer a free trial, while others offer a free version of the software.
Rather than comparing current prices, let's look at how to compare the costs of applications when they have different pricing models.
The best way to compare costs is to reduce each application to a User Metric:
User Metric = Price Per User, Per Month
This factor allows you to compare the cost of each application on an equal basis. To calculate the User Metric, gather the following costs:
- The cost of the parent suite, if applicable. If the org chart software is part of another product, you need to know the cost of that suite. This cost is the Parent Suite Cost. Reduce that cost to a monthly fee, even if you are charged annually.
- The cost of the org chart software, other than per user charges. If there is an annual fee or a set up fee. This cost is the Base Cost. Reduce that cost to a monthly fee, even if you are charged annually.
- The cost of the org chart software per user. This cost is the Per User Cost. Reduce that cost to a monthly fee, even if you are charged annually.
- Find any other costs such as mandatory implementation, training, support, or data limitations. This cost is the Other Costs. Reduce that cost to a monthly fee, even if you are charged annually.
With those costs in mind, you need to consider the number of users. This number is the User Count.
Some applications might distinguish between different types of users. For example, some users might only need to view org charts, while others might need to edit them. In this case, you need to calculate the cost for each type of user.
The User Metric is the sum of the Parent Suite Cost, the Base Cost, the Per User Cost, and the Other Costs divided by the User Count.
Doing that math for each application will give you a clear picture of the cost of each application.
This method will also expose hidden costs or reveal that "free" software is not free at all.
Sometimes Pricing is Simple
Types of Org Chart Software
There are several broad categories of org chart software.
General purpose applications
General purpose applications can create an organization chart but are not designed to do so. These applications are not ideal for creating org charts because they lack the features necessary to create accurate and detailed charts.
They are, however, already available to you.
Microsoft
Microsoft Office is the most popular general purpose application. It includes several applications that can be used to create org charts:
- PowerPoint ("Does Microsoft PowerPoint have an org chart?")
- Excel ("Create an Org Chart from Excel [5 easy steps]")
- Word ("Does Microsoft Word have an org chart?")
Google is making inroads into the office suite market. Google Workspace includes several applications that can be used to create org charts:
- Sheets
- Slides
All of these applications can be used to create org charts, but they lack the features necessary to create accurate and detailed charts.
They fail many of the features listed above. They are not data-driven, they do not support multiple managers, and they do not support other types of hierarchy charts. They do not have an infinite canvas, and they do not support AI-powered org chart layout.
Human Resources (ERP) software
Human resources software is designed to manage employee data. Some HR software applications include org chart functionality.
HR systems are great as repositories of employee data. The org chart features are designed to make that data look pretty. They are not designed to create organization charts that allow you to think through reorganizations or see changes over time.
The benefit of organization charts in HR software is that they are always up to date. The downside is that they are limited in their functionality.
They lack AI powered org chart layout, they do not support multiple managers, and they do not support other types of hierarchy charts.
Specialty org chart software
If you are serious about creating accurate and detailed org charts, you should consider specialty org chart software. These applications are designed specifically for creating org charts. They offer the features necessary to create accurate and detailed charts.
Not all org chart software is created equal. Some applications are better than others. Some applications are better suited to different needs.
Lucidchart
Lucidchart is a popular drawing application. It is similar to Microsoft Visio. It is not designed specifically for creating org charts, but it can be used to make them.
Pingboard
Pingboard is close to a specialty org chart software application. It is designed specifically for creating employee charts. Through acqusition and development, however, it has become more of a general purpose HR tool. Pingboard describes itself as, "The virtual hub for your distributed workforce."
Lexchart
Lexchart is a pure org chart software application. It is designed specifically for creating org charts. It offers the features necessary to create accurate and detailed charts.
Lexchart is the only application built on a foundation of artificial intelligence. This AI-powered org chart layout is critical to creating accurate and detailed charts.
Free org chart software
It is often tempting to use free org chart software, especially when is just an immediate need for a single chart. Not all free org chart software is created equal.
Leverage existing software
Sometimes free just means that you already have the software. Microsoft Office and Google Workspace are already available to you. They can be used to create org charts. They are not ideal for creating org charts, but they are already available to you.
Org chart templates vs Org chart software
Some times "free software" is just an org chart template. There are two problems with org chart templates:
- They are not software. They are just a template. They are not data-driven. They are not flexible. They are not collaborative. They are not efficient. They are not accurate for your organization.
- They are designed for specific applications: PowerPoint, Lexchart, etc.
Free trial vs Free software
When you need a single chart for a specific purpose, a free trial of a specialty org chart software application is a better choice than free org chart software. Free org chart software is often limited in functionality. Free trials of specialty org chart software applications offer the full functionality of the software for a limited time.
Problems with free org chart software
Free org chart software lacks features you need. The biggest issue, however, is the security risk with free org chart software. Employee data is sensitive and proprietary. Make sure that the software you use is secure, meeting these security requirements.
Conclusion
Org chart software should be easy to use. You can leverage AI to discover important insights about your organization. You can use org chart software to explore different scenarios for reorganizing your teams.