Has anyone created a waterfall-style report?

Currently our users are requesting a waterfall-style report of managers and direct reports in one report.  The gotcha for this report is that the report can start anywhere in the organizational structure and needs to include all direct reports from that point forward grouped by the manager the employee reports to.  For example, Fred Flintstone is the Director of Information Technologies.  Wilma Flintstone, Barney Rubble, and Betty Rubble report to Fred.  Pepples Flintstone reports to Wilma and Bam Bam Rubble reports to Betty.  On one interation we may want to run the report for Fred Flintstone.  The report needs to