Forget flat structures or complicated org charts. There’s only one effective way to structure a company: with a strict hierarchy and you’re crazy if you think otherwise!
All of you out there who keep trying to come up with other structural models, give it a rest. Have you heard of pyramids? Why do you think they’ve been around for so long? Because they are solid, they look great, and they freakin’ work!
No pharaoh ever asked to be buried under some small flat piece of ground because they understood greatness.
With a hierarchical system, the leader sits at the top where they belong and sends information down to the rest of the employees. Everyone knows who is in charge and who makes the decisions. Titles and rigid structure eliminate confusion and keep the company running efficiently.
There’s a reason hierarchies have been around for centuries–they work! The strict structure is proven in many of the world’s most respected organizations, including militaries, big banks, and industry.
One of the best examples of hierarchy is in the military. Each branch uses a strict chain of command to pass orders and assignments. Everyone knows who is in charge and who leads each group. The smartest people lead the teams, and there’s no confusion about roles or responsibilities. Instead, groups trust their leaders to make the best decisions, wait for their orders, and follow directions. They don’t waste time or effort trying to figure out what to do next.
But beyond the organizational benefits, hierarchy is the only way to get results from employees. Employees need someone higher up telling them exactly what to do, which only happens in a hierarchy. They won’t get their jobs done without someone to tell them what to do.
A hierarchy is especially important in today’s remote work settings. Without being able to see what people are working on regularly, the only way bosses can keep their people in line is with a strict structure. You can’t trust employees to actually get any work done at home unless you dictate everything that needs to be accomplished and check in regularly.
The great Frederick Winslow Taylor said it best:
“Now one of the very first requirements for a man who is fit to handle pig iron as a regular occupation is that he shall be so stupid and so phlegmatic that he more nearly resembles in his mental make-up the ox than any other type. The man who is mentally alert and intelligent is for this very reason entirely unsuited to what would, for him, be the grinding monotony of work of this character. Therefore the workman who is best suited to handling pig iron is unable to understand the real science of doing this class of work.”
Essentially, employees need to stay in their section of the hierarchical pyramid because they aren’t capable of making larger decisions or doing anything more. Employees stay in the roles they can best comprehend, while smarter leaders stay in roles that maximize their talents and showcase their skills.
Your job as a leader is to earn the company money. You’re the chess player, and everyone else is just a pawn for you to win. Employees are just there to do their part and occasionally move up the hierarchy.
A hierarchy details your company’s promotional structure so people know exactly what they have to do to move up. No metrics, no fluff, no engagement scores or perks–people move their way up the ladder without fanfare.
Gary Hammel incorrectly said a hierarchy costs companies millions a year and countless unhappy employees. He clearly doesn’t know what he’s talking about and how good the view is from the top of the hierarchy. Who cares about the cost when it keeps employees in line.
You don’t have to waste money giving employees freedom and autonomy. It saves money when everyone knows where they need to be and doesn’t question their roles or try to rock the boat.
To keep your hierarchy stable, make sure people know who is in charge. Assert power whenever possible and make sure information is only coming from the top and not from any other source.
The world is confusing enough without adding a complicated or flat organizational structure. If you want to succeed, your company must adopt a strict hierarchy.
Now let’s all agree and move past this silly debate so we can get some work done.
-The Outdated Leader
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Over the last 15 years, I’ve had the privilege of speaking and working with some of the world’s top leaders. Here are 15 of the best leadership lessons that I learned from the CEOs of organizations like Netflix, Honeywell, Volvo, Best Buy, The Home Depot, and others. I hope they inspire you and give you things you can try in your work and life. Get the PDF here.
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