If the Internet represents a call to arms for the new economy, then the flat
organization represents the structure of the new militia.

It is not unlike what the British faced when they crossed the ocean to fight the
colonists. Their staid hierarchical structure -- the foundation of the modern corporate
organizational chart -- could not keep pace with the scrambling, improvised tactics of
the revolutionaries. Now we find the same thing happening on the economic battlefield
as new, upstart companies are pressed into action against an established corps of
deeply rooted predecessors.

Many well meaning and experienced managers think a flat organization is about as
useful as a flat tire. Theirs is a self-fulfilling prophecy. "Any form of behavior that
you reward, you will reinforce," B.F. Skinner said. Of course he meant good behavior as
well as bad behavior. The power-centric habits of the traditional organizational
hierarchy are difficult to leave behind unless the entire operation is stripped clean
and built from scratch. That just doesn't happen without resistance in an established
company. You quickly find that the flattened organization is being called a matrix
organization. What is a matrix organization? It is a manager's term for a failure to
draw clear lines of authority, a management disaster, a bloody mess. In other words, it
is a failed attempt to breathe life into a hierarchical organization.

Traditional hierarchical organizations

The traditional military structure of most corporations has its advantages. Authority
is clearly drawn and leadership is by decree. Communication is restricted to those
above or below you but never across ranks. Power is measured by budgetary control.
There are rules for making every kind of decision and forms for creating a paper trail
of approval. It is an effective way to manage an old established industry. It is
perfect for a cash cow economy because it demands little of its workers. It rewards
savings and punishes risk taking.

The traditional organization comes up short when business conditions require swift
action. Those in control often do not have enough information to make informed
decisions. But they make decisions anyway, based on past experience. Past experience
doesn't always cut it in the new economy. Slow to approve decisions, the hierarchical
structure often ignores staff members' talent and experience and, having a general
intolerance for mistakes, sacrifices underlings to save face for those in authority.
One follows orders in the traditional organization. One is not part of a team.

Flat organizations

Having a flat organization does not imply a lack of leadership. To the contrary,
leadership is essential, and it has to learn how to be the center of gravity, drawing
others into it. A flat organization is more like coaching a team than running an army.
Everyone knows that the coach makes the plays, but players must perform individually on
the court. The talent and judgment of the players is what wins games, not the
playmaking of the coach.

A flat organization is an attempt to channel employees' best ideas and collectively
guide the team towards a common goal. It empowers the team, not the executives. It
rewards risk taking, applauds what can be learned from mistakes, and requires
exceptionally talented people.

Thriving in flatland

Are you ready for a flat organization? If so, you must be prepared to accommodate the
following practices:

• Leadership by coaching, not directive. One does not lead from
  above in the flat organization. The coach is a member of the team. It is a
  roll-up-the-sleeves kind of environment.

• Decision by team consensus. The team must consist of the most
  talented people available. The best flat organization is one in which team members'
  talents overlap but avoid duplication. The goal is to pool the knowledge and experience
  of the entire team. Motto: every idea can be improved.

• Communication occurs in all directions at once. Rank does not
  restrict who can speak to whom. Everybody's opinion counts. Communication is
  opportunistic. You can talk to the CEO in the bathroom. The best decisions are often
  made spontaneously, on the fly, as when two coworkers run into each other and share
  ideas. Motto: leadership is by walking and talking.

• Decisions are made quickly. Decisions are merely a formality
  that follow consensus. There should be a disregard for paperwork and a respect for team
  members' ability to articulate recommendations.

• Tolerance for error. Mistakes are undone just as quickly as
  they occur. Motto: error and the correction of error are vital parts of long-term
  success.

• The power center shifts from budgetary control to information and
  ideas. Those with the best ideas will gravitate towards the center of
  leadership. That is where many traditional managers must step out of the way. Success
  and power are shared by the team. No individual has a monopoly on good
  ideas.

» posted by abennett

ITworld.com

• Email
• Print
• Share
  • Slashdot
  • Digg
  • Stumble
  • Reddit
  • Newsvine