A Flat Organisation or a Flat Culture?​

A Flat Organisation or a Flat Culture?​

Type “organizational structure” into Google and it gives you endless results – some pages tell you there are seven types, others five or nine. But if I were to group them simply, it would look something like this:

1. Traditional Hierarchical Organisations where there is a strict chain-of-command from top executives to regular employees.

2. Flat Organisations where there is little to no middle management between top executives and regular employees.

3. Matrix Structure where it combines two or more reporting relationships as teams are usually separated into project groups. If you’re not familiar with the Matrix Structure, the horizontal rows also represent Agile Team Structures that many organisations adopt today, comprising individuals from different department.

There seems to be a general trend to associate flat structures with a good working culture, especially for startups[1]. Even Mckinsey & Company encouraged organisations to do away with hierarchies because of the lack of accountability[2]. But is this really the answer to common people problems such as employee burnout, working in silos, lack of trust, poor relationships and collaboration, lack of accountability and innovation? My past working experience with various organizations (and structures) is suggesting that there is no substantial correlation between organization structures and good working cultures.

Simply look at Singapore’s best employers 2022 (Economic Development Board, The LEGO Group, McDonalds, Woh Hup, NUHS), do they not have the traditional hierarchical structures? They do! So why do people think that structures and hierarchies affect culture when it really does not – instead the people sitting in leadership positions regardless of a hierarchical or flat structure may be the ones who are really the biggest impediment to innovation and change.

The key to success is therefore not a flat organization, but a flat and open culture.

What does it look like?

• There is a true sense of equality among employees, regardless of background, rank or diversity. People feel valued.
• There is freedom to discuss ways to work and innovative ideas. People are self-motivated to be involved in the business.
• There is a high level of trust and accountability. People are transparent and there is a clear route of communication among all.

However, a common problem is this (interestingly enough, regardless of job position, age and experience): What if my ideas, concerns or opinions are not heard and/or supported? Do I feel psychologically safe to express myself? Is there true accountability in the organisation? To hear this from a regular administrative staff in a large organisation may not be alarming, but I was also surprised to hear this from Executive board members sitting in a large and successful company recently. This got me thinking if this was truly a structural issue, or a mindset and cultural issue.

How do we resolve this then?

• Leaders need to nurture a mindset that invites people to work with a shared set of beliefs and values.
• By nurturing the right mindset, where everyone is seen and heard, leaders can create a safe environment for employees.
• Transformational culture change is purposeful and leader-led, and there are tools to help guide our mindset and behaviours.

Organisational structures need to be put in place to ensure optimal performance and it may vary between industries. Therefore, creating a flat and open culture is much more practical to improve your organisation and enable people to be at their best, as compared to merely changing organisational structures. Leaders with the right mindset are highly self-aware and will focus on the importance of mindset training. If you are in a position to effect change today, will you take the first step to develop and nurture the right mindset?

Arbinger’s work is about creating flat cultures where people are seen and heard. To know more, check out Arbinger’s international best sellers – Leadership & Self-Deception and The Outward Mindset books.

[1] https://hbr.org/2021/06/how-to-successfully-scale-a-flat-organization

[2] https://www.mckinsey.com/business-functions/people-and-organizational-performance/our-insights/the-organization-blog/fitter-flatter-faster-how-unstructuring-your-organization-can-unlock-massive-value