“All models are wrong, but some are useful.” George E.P. Box

Organisational charts have been used as a tool to visualize company structures for over a century. Though these visual representations of an organisation's structure have evolved over time, there have been few fundamental changes since their inception. Come on a trip down history lane to learn about the genesis of the modern org chart, where they have fallen short, and what we can do about it.

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The Purpose of Org Charts

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1. Clarity: They provide a clear visual representation of how different groups, teams, and roles relate to each other.
2. Communication: Org charts help everyone understand reporting lines and formal communication pathways.
3. Decision Making: They assist in identifying key decision-makers and understanding the chain of command.
4. Planning: HR departments use org charts for succession planning and identifying gaps in the organisational structure.
5. Onboarding: New employees can quickly grasp the company structure and their place within it.

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The Evolution of Org Charts

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In the beginning…

The first known org chart was created in 1855 by Superintendent Daniel McCallum to illustrate what was one of the largest and most complex organisational structures in the US, the New York and Erie Railroad Company.

Unlike today’s ubiquitous pyramid charts, McCallum’s chart functioned as both a chart and a map, with each sprawling line containing a mixture of people who moved with the train and those who remained on the line.

As real-time communication was difficult, the organisational structure needed to enable clear communication lines across both the physical and organisational lines.

McCallum believed in the division of responsibilities and making those responsibilities transparent. By illustrating them through this map, he created a shared understanding of how everyone worked together to fulfil the company’s objectives.

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Welcome to Modernity

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In 1917, the org chart structure that we are most familiar with was birthed by the Tabulating Machine Company, now known as IBM. Unlike the complex, nature-mimicking chart created by McCallum, this chart was symmetrical, pyramidal, functional, and rigid. Attempting to contain practical information about the divisions, departments, and dispersions of the company, this chart became the model that most still follow today.

While the structure has merit in its clarity and simplicity, it’s unlikely to represent the real relationships, communication lines, and workflows of any company, and so provides little value beyond illustrating reporting lines.

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Alternative Approaches

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As organisations have become larger and more complex than ever before, new organisational structures have emerged to rise to the challenge of increasingly dynamic and unpredictable markets. Though there are many models out there, most of them are built from the same fundamental structures, with a few tweaks for flavouring.

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