BUSINESS

Business unit hierarchy chart.

A business unit hierarchy chart shows how a company groups its major functions. It is useful when people need a high-level view of accountability without a card for every employee. This example places product, technology, revenue and operations under executive leadership, then shows one team under each unit. It can be expanded with regional, product-line or shared-service groups when those are central to the discussion. Keep reporting hierarchy and cross-functional collaboration separate; matrix relationships are easier to read when added only where they matter.

UPDATED 2026-09-24
EXAMPLEBusiness unit hierarchy chart.
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CASE ANALYSIS

Scenario

team-planning

Key decisions

  • Executive layer: Put business units under one accountable leader.
  • Functional grouping: Keep each team within its primary business unit.
  • Clear scope: Use simple function names before adding people.

When to reuse this

Use this hierarchy to discuss functional structure at a company.

FAQ

Frequently asked questions

What is a business unit hierarchy?01
It is a chart that groups related teams under larger, accountable functions.
How is this different from a detailed org chart?02
It focuses on units and teams rather than every individual role.
Can teams report to more than one unit?03
Use a dotted relationship only when a real matrix reporting line needs to be shown.
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