Taxonomies Explained – Orgvue Knowledge Base

A taxonomy is a framework used to classify items into hierarchical categories.
They are MECE: Mutually Exclusive and Collectively Exhaustive:

Taxonomies help understand the world around us: bringing control over complexity to overcome chaos. Some examples include

The Periodic Table of Elements: a framework within which every element in the universe is classified and categorized according to defined properties.
The Dewey classification system: A single number making it possible to find any book and to return it to its proper place on library shelves.
Standard Industry Codes: providing the means to allocate organizations to industries so for comparative analysis and economic reporting.

A screenshot of a computer Description automatically generated

Taxonomies help us understand organizations, and enable the component of the organization system to be connected with data.

Role Grids: Roles (Jobs) structured by Level and Role Family used as a basis for job architecture to maintain consistency across the organization
Activity Taxonomies: Structuring the work to be done to deliver the strategy in a hierarchy where Value Chains (e.g. “HR Value Chain”) are comprised of Processes (e.g., “Talent Acquisition Process”), and Processes are comprised of individual work Activities (e.g., “Source Candidates”). Activity Taxonomies are used to set clear Role accountabilities (with Roles linked to Activities through RACI, RAD etc.) and to understand how work gets done, through Activity Analysis surveys which link each member of the workforce to each activity they conduct through time spent and accountability exercised.
Competency Taxonomies: Structuring the skills, knowledge and behaviour needed to deliver the strategy. Competencies are linked to Roles through the target proficiency levels needed to perform, and to People through the actual competencies possessed and the level of proficiency demonstrated.

Related articles