More and more organizations are moving towards flatter organizational structures. As Mark Zuckerberg said “every layer of a hierarchy adds latency and risk aversion in information flow and decision-making.” Moving to a less hierarchical model comes with its own set of challenges.
Harvard Business Review has researched the experiences of a Colombian food processing company, Avinsa – the key learnings and strategies from their ongoing initiative. The authors of the research observed and interviewed key personnel and reviewed multiple documents to shed light the challenges, learnings, and strategies that can guide organizations in their quest to flatten hierarchies without compromising on efficiency, growth, and employee well-being.
Here are the top findings:
Residual Approval Habits: Despite efforts to empower decision-making at all levels, past hierarchical practices hinder agility. Overcoming these ingrained habits requires a gradual approach with coaching, role redefinition, and constant reinforcement of empowerment.
Departmental Integration and Coordination: Sudden collaboration among departments can lead to friction and misalignment. Providing employees with time to adjust and clarifying their roles are essential to prevent feelings of disorientation and anxiety.
Uneven Progress: Different departments transition at varying paces due to unique histories and cultures. Tailored transition strategies, including extended training and phased rollouts, are necessary to ensure smooth progress.
Managing Multiple Change Initiatives: Balancing the shift to a flat structure with other organizational changes requires clear and consistent communication from leaders to align employee perceptions and prevent misalignments.
Leadership Style: Exerting too much control can stifle the empowerment while being too hands-off can leave teams directionless. Achieving the delicate balance between providing guidance and fostering autonomy is crucial. Regular feedback helps leaders maintain this equilibrium and adapt their approach as needed.
Clear Communication: Introducing new terms for roles and initiatives can create confusion and hinder collaboration. Orientation sessions and workshops are essential to ensure employees understand and apply new terminology effectively.
Reskilling Requirements: As roles evolve, employees must acquire new skills to thrive in a less structured environment. Workshops, mentorship programs, and hands-on projects can facilitate this transition.
Balancing Short-term Agility with Long-term Vision: Employees need to understand the broader goals of the transition, even when immediate results are not evident. Organizations must remain flexible and adapt their strategies in real-time while maintaining a long-term vision.
Ultimately, fostering a sense of psychological ownership among employees cultivates commitment, resilience, and collective purpose, driving the success of the transition to a flatter organizational structure.
Source: The Challenges of Becoming a Less Hierarchical Company by Eric M. Anicich, Michael Y. Lee, and Juan Pablo Sánchez Celi on hbr.org
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