How a Startup Org Chart Evolves Over Time

1. The Founding Stage

In the earliest days of a new startup, formal job titles and rigid hierarchy aren’t all that necessary. In fact, trying to establish a company hierarchy too soon can often get in the way.

It’s still a good idea to create an org chart right at the start, though. At the very least, you’ll have it ready when the time comes to hire more employees.

During this stage, your primary focus will be to settle on how many co-founders to bring on board. It’s rarely wise to try to jumpstart a company on your own. Two founders are almost always better than one, and often, three are better still. For one thing, three founders means that there’s always a tiebreaker if two can’t agree on something.

Of course, quality is still more important than quantity. You need to know you’ll be working with people you can trust. And you’ll want to find skill sets that complement your own, too.

For example, if you’re designing and building the product yourself, you may want to find a partner who can manage the commercial side of things. That way, you’ll be free to focus on what you do best while your co-founder handles the rest.

Regardless of your area of expertise, having at least one partner to lean on can make all the difference in the earliest stages.

2. The First Hires

After your founding team has laid the groundwork for your fledgling company, you’ll need to recruit some more helpers. You’ll probably start using actual job titles, but everyone is still going to be wearing multiple hats—often beyond the normal bounds of their job description. Flexibility is key at this stage.

For example, the CEO alone may be:

• Providing guidance for the company vision
• Managing administrative responsibilities
• Resolving any disputes among the team
• Seeking funding

…and more.

Generally, your departments will be limited to Product, Engineering, and Design. Those departments will be loosely defined, too, with plenty of overlap. Once again, everyone’s wearing lots of hats.

Common org chart positions added at this stage include:

• Chief Executive Officer (CEO)
• Chief Technology Officer (CTO)
• Product Manager
• Head of Design
• Head of Growth

3. Growing the Team

Once your startup has proven that it has potential, your next priority will be to develop the product and scale your company as quickly as possible. With that goal in mind, you’ll need to start expanding your staff right away.

This will involve giving your current team members more ownership of their departments and hiring more employees to assist them. The lines between different departments will become clearer, as well, and job titles will become increasingly specialized.

For example, the Growth Team may split into Sales, Marketing, and Customer Success, with each department recruiting top talent to carry out new responsibilities.

The CEO will also have to delegate more tasks, requiring a broader leadership team at the top of the org chart.

Common org chart positions added at this stage include:

• Chief Operating Officer (COO)
• VP of Marketing
• VP of Sales
• VP of People
• Head of Finance
• Head of Legal
• VP of Customer Success
• VP of Business Development
• VP of Engineering

4. Scaling Up to IPO

Now that your company is really growing legs, there are quite a few directions you could take it. Where you go from here will depend on your unique goals.

Regardless, many of the trends of the previous stage will likely continue: your existing departments will grow, new departments will form, and more specialists will join your teams.

Beyond this, as you draw nearer to IPO, you’ll want to start acting like a public company, even if you aren’t yet. This will raise the priority of financial, operational, and administrative tasks.

And as your employee headcount swells, it will be more important than ever to have a robust Human Resources Department to help with employee recruitment and retention.

You may expand your C-suite, as well. In most cases, this will mean upgrading your current department heads to C-level titles. For example, your VP of Marketing may become a Chief Marketing Officer (CMO), and your VP of People may become a Chief People Officer (CPO).

Common org chart positions added at this stage include:

Chief Marketing Officer (CMO)

Chief People Officer (CPO) Chief Financial Officer (CFO) Chief Communications Officer (CCO) Chief Revenue Officer (CRO) Chief Information Officer (CIO) General Counsel Head of Product Marketing VP of Accounting Head of Mergers and Acquisitions VP of Investor Relations VP of Business Intelligence Head of Public Policy VP of Culture Recruiting Manager

Create an Org Chart for Your Startup Today

No matter what path your startup follows, creating an org chart is one of the best ways to optimize your business structure for maximum efficiency, productivity, and growth. And as your professional team expands, your org chart will help you keep track of your staff and hone your strategy.

To learn more about the benefits of an org chart, check out our guide here:

Why Companies Should Have a Public Org Chart

Or, if you’re ready to get started on your org chart right now, click through the box below to sign up for The Org.