The best design for a user hierarchy is to organize or group attributes into logical business areas. This allows users to more easily locate attributes in a project and navigate from one attribute to another. For example, you can place related attributes into hierarchies by their level.
The example below demonstrates the Location and Customer hierarchies. Within the Location hierarchy, State, City, and Store are organized according to their relationships to each other. The Customer hierarchy also groups together the attributes Company, Contact, and Customer.
When creating user hierarchies, keep in mind that hierarchies do not have to be separate from one another or necessarily follow the dimensional structure of your logical data model.