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Clear communication of strategy across the organization.
Translation of broad strategies into annual objectives.
Development of functional policies, procedures, and operational plans.
Allocation of resources (financial, human, technological).
Adapting structure, processes, and culture to support strategy
Basis for resource allocation
Instrument for evaluation and control
Source of motivation
Enable prioritization and coordination
Foundation for managerial accountability
Translate strategy into action
Promote consistency in decision making
Facilitate coordination
Reduce the time managers spend making repetitive decisions
Empower employees
Minimize conflict
Technological resources (information systems, equipment)
Physical resources (facilities, materials)
Resistance to change
Avoidance (ignore or delay confrontation)
Defusion (smooth differences through compromise, humor, or playing down disagreements)
Confrontation (directly addressing and resolving the conflict through problem solving)
Show authority relationships clearly.
Use simple, easy-to-read titles.
Place the CEO at the top.
Follow a clear chain of command.
Use consistent shapes and spacing.
Keep the chart current.
Indicate major functions or divisions clearly.
Show lines of communication (solid/direct & dotted/indirect).
Do not include individual names (use positions).
Do not show informal relationships.
Avoid excessive detail.
Do not design a chart that contradicts organizational reality.
Do not show every employee—only key positions.
Avoid overly complex or confusing diagrams.
Do not use the chart as a substitute for healthy communication.
Linking pay to performance.
Encouraging diversity and inclusion.
Managing work-life balance.
Employee empowerment and participation.
Retention of talent and reducing turnover.
Training and development aligned with strategy.
Building a strong organizational culture.