How Flat Organisational Structure Improves Your Company

It happens. A young employee tries to come up with new solutions for the company, suggests it to their manager and it ends up with nothing.

Why does this happen? Short answer: bureaucratic and multilayered organisations just do not work that way.

In multilayered organisations, it can be very hard to identify where an issue starts and stops. A rigid and bureaucratic hierarchy decreases communication and increases inefficiency.

 

Why Todays Companies Go For Flat Hierarchy

Mercer’s 2017 Global Talent Trends Study found that one out of three companies are planning to flatten their organisational structure in the next two years. The research found these five leading contributors to the change:

• Greater efficiency

• Increased agility

• Greater customer intimacy

• Reduced costs

• Increased innovation

A flat management structure enables decision-making and operations to happen at basically the same level. This increases transparency and improves results.

Source: Jacob Morgan / thefutureoforganization.com

When higher-level leadership is part of the daily operation, they’re better equipped to:

• Evaluate employee performance

• Notice and understand operational faults

• Formulate solutions to company problems

Moreover, a flat management structure means that lower employees have access to leaders. This allows inventive young employees to get their ideas up and running.

It can be impossible to know who said no to an idea and why in a multilayered firm. A flat structure allows that no to evolve into “but maybe this.” Employees and management can exchange ideas and bring innovation to market more quickly.

 

Be aware of the changes

Minimising layers of bureaucracy helps senior leadership keep its finger on the pulse of the organisation. This will ensure that the decision they make will benefit their customers and clients.

Furthermore, flat management structures don’t just improve company performance by discarding the middlemen. A flat structure is also a structure that is transparent.

Increased access to senior leadership increases the advisors’ sense of accountability. It also allows them to take increased ownership of their work. At the same time, it enables teams and advisors the independence to choose what’s right for their customers and clients.

 

In the financial sector and many other industries, hierarchies have always dominated. But with flat structure offering the potential to get better results to clients faster than ever before, it is time to make a change.

 

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Source: Forbes

 

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