Org chart

In 1855, Daniel McCallum, the general superintendent of the New York and Erie Railroad, faced a problem that no business had solved before. The railroad stretched nearly 500 miles across the northeastern United States and employed thousands of workers spread across dozens of stations. Smaller railroads could be managed informally, but at this scale, the lack of clear reporting lines was causing delays, inefficiencies, and deadly collisions.¹

McCallum's solution was visual. Working with civil engineer George Holt Henshaw, he produced a diagram resembling a tree, with branches representing the railroad's five divisions and individual leaves showing workers and stations along each line. The general superintendent sat at the base, not the top. Frontline workers extended outward along the branches.²

The chart was titled, in the verbose style of the era, "Diagram Representing a Plan of Organization Exhibiting the Division of Administrative Duties and Showing the Number and Class of Employés Engaged in Each Department." It is recognized as the first modern organizational chart.³

500, Miles of track on the New York and Erie Railroad when McCallum drew the first org chart

McCallum also designed a system of hourly, daily, and monthly reports that fed information up the branches, allowing him to calculate metrics like cost per ton-mile. Business historian Alfred Chandler later identified McCallum as one of the founders of modern management practice.⁴

The original 1855 chart was thought lost for decades. Chandler described it in his books but had never seen it himself. Researchers Charles Wrege and Guidon Sorbo Jr. finally located it in the Library of Congress archives in 2005.⁵ The New York and Erie Railroad went into receivership four years after the chart was produced.

Timeline

• 1855, Daniel McCallum produced the first modern org chart for the New York and Erie Railroad.
• 1977, Alfred Chandler identified McCallum as a founder of modern management in The Visible Hand.
• 2005, Researchers located the original 1855 chart in the Library of Congress archives.

Endnotes

1. Caitlin Rosenthal, "Big Data in the Age of the Telegraph," McKinsey Quarterly, March 2013.
2. Daniel McCallum and G. H. Henshaw, "New York and Erie Railroad Diagram Representing a Plan of Organization," 1855, Library of Congress, Geography and Map Division.
3. Alfred D. Chandler Jr., The Visible Hand: The Managerial Revolution in American Business (Cambridge, MA: Harvard University Press, 1977), 101-107.
4. Chandler, The Visible Hand, 101-107.
5. Alfred D. Chandler Jr., "Origins of the Organization Chart," Harvard Business Review 66, no. 2 (1988): 156-157. The chart's rediscovery is documented in subsequent scholarship by Wrege and Sorbo.