Hierarchy
how to move beyond it

The era of traditional corporate hierarchies — dominated by rigid pyramid org charts, opaque decision-making, and profit-driven priorities — is rapidly becoming obsolete. Today, organizations need agile, human-centered approaches to remain competitive and foster meaningful work environments.

In this article, we'll shine a light on hierarchy and what's beyond it:

• The problem with traditional hierarchy
• Challenges of traditional hierarchies
• Real-life case study: Dutch Police Force
• Hierarchy and job titles
• Alternatives to traditional hierarchies
• Why companies must move beyond the pyramid

The problem with traditional corporate structures

Traditional hierarchical structures are still very common in the corporate landscape worldwide. But they have many downsides. These structures, often visualized as a pyramid, have the most authoritative professionals at the top and front-line employees at the bottom. Decisions are taken at the top, and information trickles down as well. Often it doesn’t make it all the way to the bottom of the pyramid.

This setup can have several issues.

• Complicated chain of command.
  Hierarchies can slow down decision-making. The need for approval from multiple levels of management can lead to delays and inefficiencies.

• Inconsistencies in management.
  Different levels of management may have varying leadership styles, goals, and expectations. This inconsistency can lead to confusion, affecting performance and job satisfaction.

• Communication delays.
  Information often needs to travel vertically through the levels and horizontally between teams, causing delays. If it even makes it all the way down: hierarchies are often not transparent at all. Miscommunication is lurking. This hinders productivity and, overall, employee engagement.

• Cooperation stalls.
  Research shows that egalitarian teams focus more on the group. In traditional hierarchies, employees feel a bigger need to fend for themselves. This may even be at the expense of others.

  
  

Real-life example

Let’s take a real-life example: the Dutch Police Force. In 2003, a crisis led to the formation of the Netherlands’ National Police, a shift from the country’s decentralized police organization. However, their top-down approach resulted in several issues.

The hierarchical structure of the Dutch Police Force created a reactive culture where top-down decision-making hindered innovation and operational efficiency. 

In response to these challenges, a strategic program was implemented to improve the organization. The program, known as ‘Q’, was there to boost innovation capacity. This approach, heavily influenced by ‘The Corporate Startup’, ‘lean startup’, and ‘design thinking’ principles, emphasized rapid experimentation, iterative development, and customer feedback.

The transformative program, emphasizing bottom-up innovation and agile methodologies, demonstrated the potential for meaningful change in even the most rigid institutions.

The process involved several stages:

This approach led to several successful innovations, such as a Cold Case Calendar, Forensic Screening with AI, and new ways of working based on Agile and Scrum methodologies. This created a more bottom-up approach within the Police force. It showed the potential for positive change when traditional hierarchies are challenged. Even in big government organizations.

Even though there is still plenty of room for improvement in the organization of the Police force, it shows what a change in hierarchical structure can do.

Hierarchy and corporate job titles

For centuries, titles have been the cornerstone of hierarchical structures, conferring authority and respect. In an era where royals still ruled, loyalty to a title was greatly rewarded. Unfortunately, that is still the norm in most of today’s corporate world.

In today’s corporate world, however, clinging to job titles often stifles creativity, innovation, and collaboration. Progressive companies are shifting to role-based structures where employees take on multiple roles aligned with their skills and passions, unleashing untapped potential. For example, an accountant with a love for graphic design could have both roles in the same company.

So, what is the benefit of using roles instead of the hierarchy of corporate job titles? Well, there are plenty. What about less ego, more happiness, and no more unused talents, to name a few?

Slowly, but surely, a fresh wind is blowing. Look at our list of pioneers, which grows every year. They choose differently. They choose people. Without job titles, people are free to do what they’re good at—without the limitations of a job description.

Examples of other ways companies have structured teams:

• Amoebas (Kyocera): Kyocera, a Japanese multinational ceramics and electronics manufacturer, is divided into small entrepreneurial units called amoebas. Each unit consists of about 5 to 50 people, all with a clear goal of making a profit for itself.

• Cells (Buurtzorg): Buurtzorg, a Dutch healthcare organization, is structured around self-managing units — cells. These cells divide themselves after growing to a certain size.

• Micro-communities (Haier): Haier has its own organizational structure, Rendanheyi. Basically, the company of 80.000 staff is divided into self-managing units that function as micro-enterprises. They can also join micro-communities. Decisions are made within each micro-enterprise. No need to report to C-suites.