To create a diagram in PowerPoint 2007, you must first choose a SmartArt graphic in the Choose a SmartArt Graphic dialog box. After that, you can change the diagram's size and shape, and enter the text.
If you select the wrong diagram to start with, all is not lost. You can choose another diagram in its place, although success at swapping one diagram for another depends on how far along you are in creating your diagram.
Follow these steps to create a PowerPoint diagram:
1. Open the Choose a SmartArt Graphic dialog box.
You can open it two ways:
• On the Insert tab, click the SmartArt button.
• Click the SmartArt icon in a content placeholder frame. You can find this icon on slides created with the Title and Content, Two Content, Comparison, and Content with Caption slide layouts.
2. Select a diagram in the Choose a SmartArt Graphic dialog box.
Diagrams are divided into seven types. The dialog box offers a description of each diagram. Either select a type on the left side of the dialog box or scroll the entire list to find the graphic that most resembles the diagram you want.
In the Hierarchy category, select the Organization Chart, Hierarchy, or Horizontal Hierarchy if you want to create a graph with many levels and branches. These three diagrams are much more complex than the others.
3. Click OK.
The Home tab offers a command for turning a shape into a diagram. Select the shape that needs to be a diagram and click the Convert to SmartArt button on the Home tab (you can find it in the Paragraph group). You see a drop-down list with diagrams. Either select a diagram there or choose More SmartArt Graphics and choose a diagram in the Choose a SmartArt Graphic dialog box.
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Source:http://www.dummies.com/how-to/content/creating-powerpoint-diagrams.html
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