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Organizational charts offer quite a few benefits for companies. They increase transparency, boost productivity, and attract better hires. But one of the biggest advantages of having a public org chart is that it can make your business more appealing to investors.

Here’s how.

What Is an Organizational Chart?

First things first: what exactly is an organizational chart? Org charts are diagrams that show the structure of a company or other organization. They visualize where every staff member fits within the broader hierarchy, as well as the grouping of teams, departments, and offices. It’s a lot like a family tree for a business.

For a more detailed look at how org charts work, see here:

What Is an Organizational Chart?

So how does an org chart help you find investors? Let’s talk about it.

How Does a Public Org Chart Attract Investors?

It Establishes Credibility

Public org charts are all about transparency. They reveal the structure and purpose of your company for all the world to see. Everyone gets a clear picture of how the whole operation fits together.

That transparency is useful for employees and business leaders within the organization. For more on that, see:

How Do I Make My Company More Transparent?

But transparency can also provide value for potential investors. In the modern world, nothing is more important to an investor than the people they are investing in. They want to know what kind of talent you have at your disposal and how you’re using it.

By showing investors:

• Who you have on your team
• How many staff you employ
• How you’ve structured your organization

…you can make your company stand out in the eyes of potential investors. You’ll be demonstrating a willingness to be open and honest with the world. That can go a long way to establishing trust with an investor.

And who doesn’t like to brag a little? Take pride in your staff and show off your brilliant crew.

It Attracts Top Talent

Transparency is great, but in order for it to truly make an impact on investors, you have to have a company—and staff—worth being transparent about.

The most talented professionals have options. They can afford to be picky about which companies they join. As a result, they often put a lot of thought into the pros and cons of their prospective employers before making a final call.

A public org chart is one of the best ways to connect with talented job seekers.

Candidates can look at your org chart to see how your organization is structured, who they’d be working with, and what their responsibilities would entail. They could learn about their future coworkers—complete with profile pictures and brief descriptions for each employee—and see the potential for a career progression within your company.

You can even use a public org chart as a job posting board. For example, here on The Org, you can easily add an open position into your chart. Candidates can then apply for the position right from the listing, making the whole process more convenient for everyone.

You can find out more about how org charts help you hire top talent here:

Attracting Talent with a Public Org Chart

And if you want some more tips on how to improve your hiring process, check out this guide:

The Org’s Guide to Hiring

Needless to say, by attracting better hires and honing your hiring strategies, you can make your business more valuable to potential investors.

It Increases Productivity

An org chart is an effective tool for removing the bottlenecks and information gaps that plague most projects. Many employees—especially new hires—lose vast amounts of time trying to find the right person in the company to ask a simple question or give a report.

With an org chart, however, those employees have a comprehensive staff directory at their fingertips. At the click of a button, they can find exactly who they’re looking for and contact them directly.

That kind of efficiency will boost the productivity of the whole organization. Time is money, especially for on-the-clock workers. By saving your employees’ time, you’re increasing the company’s capital.

Investors will take note of that added value when appraising your worth.

It Supports a Healthy Work Culture

Culture is one of the most important factors in building a successful business. A healthy culture will bind your employees together and forge a strong community in the workplace.

A weak or toxic professional environment, on the other hand, will lead to disunity, poor morale, and employee churn. It can dampen your momentum and hinder growth.

Fortunately, your company’s culture isn’t completely outside of your control. You can establish the principles, values, and channels of communication that make a healthy culture possible.

And an organizational chart can help you get it done.

First off, org charts function as a kind of social media within a company. A standard icon on an org chart would include an employee’s name, photo, and job title at the minimum. But you can let your employees include several personal details in their profile as well, such as:

• Hobbies
• Interests
• Pets
• Favorite flavor of ice cream

All of these details (and any others they want to volunteer) can become icebreakers that help your staff engage with one another. That’s a great first step to fostering deeper relationships.

To learn more about the importance of communication in a company, check out this post:

How to Improve Communication in the Workplace

The visual layout of an org chart will also provide insight into your organization’s approach to equity and hierarchy. This, in turn, can make it easier for managers to take strides toward a more equitable, collaborative, and unbiased workplace.

All of these factors will help improve morale and enhance your employees’ job satisfaction. And since happy workers are productive workers, it should come as no surprise that investors love seeing that kind of healthy company culture.

It Helps You Plan and Restructure Your Organization

Org charts help business leaders form a clearer picture of how a company’s resources are being allocated and how they might be deployed more efficiently.

For example, along with basic information and personal details, an org chart can also include each employee’s current workload and upcoming projects. That transparency makes it easier for managers to assign tasks and estimate deadlines in the most efficient manner possible.

Managers will also be able to see what teams and departments are under- or over-resourced. If they spot any areas with insufficient staff, they can begin a hiring initiative or transfer existing employees from other, less essential areas.

And if the time comes for a total restructure, merger, or acquisition, an org chart is a crucial roadmap for determining a business’s new shape. You—or a new owner—will be able to see exactly how the organization is structured, what strengths and weaknesses it currently has, and how the overall strategy might be improved.

This potential for greater efficiency can translate to a very real increase in a company’s value—and dollar signs in the eyes of investors.

To learn more about the other advantages an org chart could bring your organization, check out this guide:

Why Companies Should Have a Public Org Chart

Or, if you’re ready to dive right in, just click here to set up an org chart for your company today.