Develop an organizational chart for your farm business

Organizational (org) charts are a visual depiction of your farm’s staffing structure. They define roles and clearly illustrate “who reports to whom,” with connecting lines showing accountability and reporting relationships.

An org chart for your farm can help keep things running smoothly and efficiently by providing the following benefits:

Helping with onboarding new employees by clearly showing who to go to with questions.
Streamlining communication and reducing potential conflict from power struggles.
Identifying logical farm successors and facilitating career paths for their skill development.
Aligning job titles (levels) within your organization.
Defining otherwise confusing family member roles for non-family team members.

Action Steps

1. Determine the structure that best fits your business.

While there are numerous different org structures used in large corporations, for most farms two primary structures are typical: flat and hierarchical.

Flat organizations have a structure with few levels of middle management between leadership and employees—or, in some cases, no middle management at all. Small organizations and startups often have flat structures because they have fewer employees and less of a need for hierarchical management (see chart below).

A diagram showing that one manager directly leads several employees

Hierarchical organizations use multiple levels of management and a “chain of command.” Larger organizations use this structure to keep the span of control (the number of direct reports per leader) to a manageable size (see chart below).

A diagram showing that hierarchical organizations have one manager on the top who directly manages two people (for example) and those two people manage other people and so on.

Each structure has distinct advantages:

Flat Org Structure

Avoids excess layers of management
Elevates employee’s level of responsibility
Lends itself to small farms

Hierarchical Org Structure

Clearly defines “go-to” people
Provides more progression opportunities
Accommodates business growth

2. Define logical reporting relationships

If you choose a flat org structure, all (or nearly all) of the positions will report directly to the farm owner/manager. If you choose a hierarchical org structure, it will be important to identify “departments” with leaders who understand the accountability they will have for others’ success. (This step often requires training and leadership skill development.)

3. Share with your team

Communication is very important for new org charts to be received favorably. Meet with leaders first and make sure they are fully on board with the new structure. Then meet with your entire team to explain the benefits the org structure will provide. Here’s a sample farm org chart:

Diagram illustrating that the farm owner manages the administrative assistant/payroll, the crop manager, the equipment manager, and the herd manager. The crop manager manages the forage supervisor who manages the forage team and the seasonal team. The equipment manager manages the maintenance supervisor who manages the maintenance team. The Herd Manager manages the the milking supervisor, the pre-partum/calving superisor, and the feeding/nutrition supervisor. The Milking Supervisor manages the milking team and the movers/cleaners. The pre-partum/calving supervisor manages the calf team and the maternity team. And the Feeding/Nutrition supervisor manages the feeding team.

Sharing org charts helps your farm business by demonstrating clear reporting structures for all employees. It creates a roadmap for how the work is to be done and the process required to ensure information is shared throughout the farm to the right individuals.