There has been a significant response to my previous blog entry entitled “What us your management format, flay or a pyramid”, so lets dig deeper into it and see why a flat organization appears to be more effective and therefore preferable.

A flat organization has managers making direct operational decisions with limited overview other then being held accountable and responsible for successful performance. Wow, it already sounds good. Can you imagine holding your managers accountable and responsible for the performance of his section, group, or division?

This requires a significant discussion with your managers out of which goals and objectives are agreed upon but achieving them is the job of the manager. Each division or group acts as if its manager is the CEO of that group. His answer is the final word, and he does not have to retreat back to the mother ship for ratification, affirmation, permission, etc. He is empowered to truly manage for success.

It further requires a CEO who will expect, anticipate and support managers making errors in judgement. This is critical, since every decision will not be correct or the best but as long as enough of the decisions are appropriate then the CEO should cultivate decision making by supporting errors made in the effort. The best professional baseball players hit one out of three or four at bats and thats success. Basketball players likewise, shooting over 50%, are all stars, and no one beats them for striking out or missing a shot. They are encouraged to swing and shoot again and again because in the end thats how they win.

Managers should be encouraged to occasionally take risk, a leap of faith, a daring experiment, and maybe they will hit a home run, bringing additional profits into the company. Low percentage shots are missed more often but players are encouraged to take them because great players make enough of them to make them valuable…Your managers should be encouraged to experiment. They should be supported in their efforts and encouraged to do it again if they fail, even if they fail more often then they succeed, as long as they reach their objectives and projections. Its all good as its a flat org and your betting on your managers delivering their objectives and projections.

In fact as previously written about in another blog entry, ask your manages to draft their own department business plan and supporting budget, give them the authority to implement it and you have the basis of a very successful flat organization, with far less management and baby sitting for you to do, as they are doing the CEO job at a lower level. Your managers are now responsible for success and will work as hard as they can to deliver it as its all on their shoulders, their plan, their budget, their operation…in their group or division.

How about rewarding them and their workers with incentives for successful implementation of their plan, lets really get them involved, committed and invested in your success.

By the way, a lot less time is wasted in meetings between you and your managers as a pyramid org will have the CEO micro managing every decision and affirming all managers activities. Not necessary anymore, give them the ball and let them run with it. Let them create the plays. Of course be involved in an orderly fashion with scheduled weekly meetings were actions and projections can be discussed and reviewed as can performance, but let them control their game plan and implement it directly with as little interference as possible. Thats flat. No assistant managers and assistant to the assistants required, let the managers run their departments..

Belichek manager of the New England Patriots sets the tone and direction and goals with a game plan, but his offensive and defensive coordinators determine the plays and formations during the game. Thats flat. Belichek does not make every decision, nor does he even review them during the game, his men are free to manage and do their job… and win.

This act turns the managers job from a bosses messenger boy and babysitter to a very productive manager as he is not just transferring the bosses wishes and managing for limited success preferring to not make errors then to score since its not his game. His job focus changes from damage control to victory, and that is what we truly want.

Why not even leave hiring decisions to your managers, its their team allow them to pick their own players.

This begs the question, what does the CEO do if he is no loner responsible for the operation and is running a flat organization with his managers controlling and operating the game?

Plan, train and review…thats the CEO’s real job.

Plan: Chart the future course and goals, plan for capital investments, growth and development.

Train: Make certain your managers are constantly learning new skills and acquiring additional capabilities, provide training opportunities and make them mandatory.

Review: Always monitor the results and the key indicators so you have a pulse on your progress and success. If faltering, your there as soon as possible to help make corrections to the plan, your supporting your managers efforts not doing their job for them.

It is important to free your managers to act independent and not merely reflect your wishes, style or approach, and it is as important for the CO to encourage and support contrary styles and approaches regarding problem solving as you flatten your organization and empower your managers.

This style of management design can eliminate levels or specific jobs of middle management, managers who report upwards and downwards but do little productive work and less managing.

Thats a flat organization. Can anyone do it? Jack Welch the most successful CEO in modern history spent his career flattening General Electric one of the most successful organizations ever, and he claims flat is the only way to go and he spent years converting a huge pyramid to a flat organization, division by division.

It requires a CEO who can resist being a control freak and let go in exchange for the benefits of greater success with far less responsibility and work effort, let your managers do their job. Why pay them allot to watch over the men when they should really be managing them.

Flatten your organization, stop allowing your ego to control your business, let your managers do their job.

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