Strategies For Agility And Innovation

The COVID-19 pandemic shook up the way organizations were structured. In my conversations with CHROs from companies like DocuSign, Encore Capital, Juniper, Comerica, Cardinal Health, MetLife, and Rent the Runway, we dug into various leadership strategies, including the shift toward flatter organizational structures. For those considering this approach to make decision-making quicker, increase agility, and give employees more ownership, they made it clear: while a flat structure can bring significant benefits, it also comes with challenges—especially when it comes to keeping employees motivated and helping them see a future in the company.

Why Organizations are Moving Toward Flatter Structures

So, why would an organization move to a flatter structure? It’s often about empowering people, speeding up decisions, and creating a culture where collaboration and innovation thrive. By reducing the layers between the top and bottom, companies aim to be more adaptable and responsive. This can be particularly effective in fast-paced sectors like tech, where staying ahead is crucial. The idea isn’t to eliminate leadership roles but to rethink what leadership looks like and how leaders can better support their teams.

Dual Leadership: A Unique Approach to Organizational Structure

At the Forbes School of Business and Technology’s Thought Leader Summit, where I was a panelist, we talked a lot about the trend of flattening organizations. One idea that stood out was “dual leadership”—two people sharing one management role. When CHROs first mentioned this, I thought of the awkward co-manager scenario from The Office, but companies like Warby Parker and Whole Foods showed that it can actually work. These companies succeeded by having one leader focus on strategic planning while the other zeroed in on mentoring and developing the team.

Why Flattened Organizations Don’t Work for Everyone

But let’s not pretend a flat structure works for every organization. Take Zappos, for example. They went bold with their “Holacracy” model to decentralize authority and empower their people. It started off well, driving creativity and engagement. But over time, many employees felt lost in a sea of role ambiguity. Eventually, Zappos had to shift back to a more traditional structure. Other companies, like Cisco, IBM, and Walmart, also tried flatter models but realized that there isn’t a one-size-fits-all solution. Every organization had to find its own balance.

Benefits of Flat Organizations: Employee Empowerment and Innovation

A major benefit of a flat structure is that it empowers employees. When I spoke to CHROs, they mentioned that when employees see their ideas reach decision-makers without getting watered down, they feel more valued. People need to know that their voices matter and can make a difference.

However, creating access to leadership doesn’t always require flattening the whole organization. Zander Lurie, then CEO of SurveyMonkey, told me how they used skip-level meetings to get similar results. It wasn’t about changing the structure but about changing the access to leadership.

Challenges of Flat Organizational Structures: Navigating Motivation and Career Growth

Of course, flattening the organization isn’t all upside. It can create issues around motivation. In more traditional setups, employees can look up and see a clear ladder to climb. That’s not always the case in a flat structure. Several CHROs I spoke with were concerned that without a clear path upward, employees could feel stuck or unsure about their career trajectory.

The challenge is helping employees rethink what growth means. It’s not always about moving up; sometimes, it’s about moving sideways, gaining new skills, and broadening their expertise. As one CHRO put it, growth in a flat organization should be seen as “the path of a snake, rather than a straight climb.”

How Curiosity Drives Engagement in Flat Organizations

This is where building a culture of curiosity becomes crucial. When you create an environment where people feel safe to ask questions, explore new ideas, and challenge the status quo, you build a team that’s more resilient and engaged. Some companies have linked curiosity directly to their innovation strategies, rewarding teams that come up with fresh ideas.

To foster this kind of culture, leaders have to be intentional. They need to create spaces where it’s safe to ask “why” and “what if” without fear. Encouraging teams to take ownership of projects and push their skills to new levels is key to maintaining motivation and energy.

Conclusion: Building a Culture That Thrives in Flat Structures

Flattening an organization isn’t just about moving boxes on an org chart; it’s about rethinking how a company functions from the inside out. By fostering a culture driven by curiosity, companies can help their people find purpose and fulfillment, even when the career path isn’t a straight line. The future of work will belong to those who are willing to ask questions, push boundaries, and see growth as a journey, not just a destination.