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    How to Create an Org Chart (For a Property Management Company)

    Creating an organizational chart can be quite a challenge, especially for those leading a lively property management company. It's like a roadmap showing who reports to whom, the key for daily work, and big-picture plans.

    Recognizing the intricate details and unique challenges in property management, VPM Solutions is excited to introduce its newest VPM Academy course How to Build an Organizational Chart! This immersive course, led by none other than CEO and industry leader Pete Neubig, breaks down the complexity of crafting a functional org chart tailored specifically to property management businesses. Whether you're looking to streamline processes, improve communication, or boost operational efficiency, our course will provide a deep dive into best practices that you simply won't find anywhere else.

    In this blog, we'll offer a taste of the insights you can anticipate, while the course serves you the complete, expert-prepared meal. We'll also clue you in on how to find and take the free course in the VPM Academy. Let's start our journey to organizational excellence – together.

    Understanding the Basics of Org Charts

    An organizational chart, or org chart for short, maps out a company's internal structure. Far from being merely a sophisticated lineage diagram for enterprises, it acts as an illustrative navigator delineating the hierarchy of reporting and interdepartmental synergy.

    The Purpose of an Org Chart

    At its core, an org chart helps everyone in the organization understand their place within the larger scheme. Think about it like navigating through a new city without Google Maps — pretty challenging, right? An org chart offers that much-needed layout for your company's structure.

    It demystifies duties and obligations, ensuring all members are aware of their direct supervisors and collaborators across different initiatives.

    Beyond clarity, these charts foster better communication across teams by revealing potential gaps or overlaps in roles. During times of expansion or organizational change, they become crucial in navigating the pandemonium.

    The Importance of an Organizational Chart

    An organizational chart is more than a diagram; it's a framework for understanding the workflow within a company. It conveys with clear precision who is responsible for various tasks and objectives, streamlining accountability throughout the corporation.

    By clarifying who reports to whom, the org chart eliminates confusion, fostering a smoother decision-making process and more effective supervision. This clarity becomes particularly essential when determining the strategic direction for new hires — it helps managers identify skills gaps and structure teams accordingly for future growth.

    In essence, an accurate org chart is a tool that contributes to a firm's stability and adaptability, by making sure everyone understands their role in the organizational ecosystem.

    Choose the Right Tool

    Selecting the right tool can make creating an org chart much easier. While some prefer traditional methods like pen and paper or PowerPoint, others opt for specialized software such as Microsoft Visio or online platforms like Lucidchart which offer templates and easy drag-and-drop features for non-designers.

    When recommending tools for creating organizational charts, it's hard to overlook the functionality and intuitiveness of platforms like Lucidchart and Microsoft Visio. Many users find that Lucidchart offers a user-friendly interface with collaboration features that enable real-time edits, a benefit for teams looking to iterate quickly on their org chart design.

    The Various Types of Organizational Charts in Property Management

    This section will explore the core types of organizational structures you're likely to encounter in property management. Each serves different purposes depending on an organization's size, goals, and industry standards.

    Portfolio Organizational Chart

    A Portfolio Organizational Chart is a visual representation that maps out the structure of an organization's project portfolio management. This chart equips management with a bird's-eye view of all ongoing projects, illustrating how they align with the company's overarching strategic objectives. It identifies the various roles involved, the hierarchy of project oversight, and the interdependencies among different portfolios.

    Hybrid Organizational Chart

    The Hybrid Organizational Chart represents a structure that combines elements of both functional and divisional charts to leverage the strengths of each. In this model, an organization might have functional departments like Marketing or HR, while simultaneously maintaining divisional units based on products, projects, geographical locations, or markets.

    It is particularly beneficial for larger organizations that require a more versatile framework to handle a variety of projects without compartmentalizing expertise into silos.

    Departmental Organizational Chart

    The Departmental Organizational Chart is designed to show the hierarchical structure of an organization based on its various departments or functional units. It delineates the roles and responsibilities of different departments and the managers that lead them. Each department functions within its own vertical, focusing on specialized tasks that contribute to the organization's operations and goals.

    POD Structure Organizational Chart

    The POD Structure Organizational Chart represents a management approach wherein cross-functional teams, known as PODs, are formed to focus on specific products or projects. Each POD acts as a self-sufficient unit with all the necessary skills and resources to deliver results efficiently. This decentralized model promotes agility, with teams empowered to make decisions quickly, often leading to increased innovation and faster response times to market changes or customer needs.

    A pink background with the word best practice on it and light bulbsThree Org Charts Every Property Management Business Should Have

    When structuring your property management company for current operations and future growth, there are three essential organizational charts that you should develop and maintain:

    Org Chart for Current Structure (Today)

    Your current organizational chart should accurately represent the operational hierarchy as it exists today. It is the “as-is” snapshot of your business, detailing the existing roles, departments, and the reporting relationships between them. This live document serves as both a reference for your team and an operational guide for management.

    Org Chart for Growth (Next Five)

    Planning for growth is crucial, and your next growth-focused organizational chart should depict the next five positions you intend to fill. This chart is a growth tool, signaling where the company is headed in the short to medium term. By including future roles in your org chart, you communicate internally and externally about the company's directional growth, upcoming capabilities, and areas where you are seeking to enhance expertise and services.

    To learn how to determine your next five, enroll in our free course where we go in-depth on this topic.

    Org Chart for Strategic Vision (Completion)

    The long-term strategic organizational chart outlines the full vision for your business when all intended positions are filled, and the company has reached its desired scale. This is your broad, comprehensive map of what your organizational structure will look like when all the strategic pieces are in place.

    It should reflect your ultimate objectives, whether it's complete market coverage, a full suite of services, or a particular operational model, and it guides both current strategic planning and ongoing organizational development.

    Rules for Creating Org Charts

    A cardinal rule when creating org charts is the principle of unique role assignment: one person, one box. This means each role in the chart should be occupied by only one individual to maintain role clarity and avoid dilution of responsibilities.

    Likewise, direct reporting should be unambiguous, with each person reporting to a single supervisor to prevent conflicting directives and confusion. Overloading one manager with too many direct reports can also lead to oversight issues and managerial strain; a balance must be struck to ensure manageability and effective leadership.

    Remember, these guidelines are just the beginning. For a deeper understanding and additional rules to create a perfectly structured org chart for your property management business, consider enrolling in our free course at the VPM Academy.

    How to Build an Organizational Chart by VPM SolutionsLearn How to Build an Org Chart With VPM Solutions' FREE Course

    What we've explored here only scratches the surface of the wealth of knowledge and practical guidance you can gain from VPM Solutions' new VPM Academy course, "How to Build an Organization Chart." Delving deeper into this course, you will find a multitude of examples, sample organizational charts, ready-to-use templates, and additional resources, all tailored to further enhance your understanding and growth in this domain.

    To access this comprehensive and entirely free course, simply create a free profile or log in on the VPM Solutions website. Don't miss this opportunity to elevate your organizational design skills at no cost. Join us at VPM Solutions to start enriching your expertise today.

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