The Challenges of Becoming a Less Hierarchical Company

Lessons from one company on how to navigate the ups and downs of going flat.

March 21, 2024

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More and more organizations are looking to create flatter, less hierarchical models to increase collaboration, agility, and employee empowerment. But recent research at a food processing company in Colombia outlines some stumbling blocks companies might face when trying to change their structure. Specifically, the researchers and company CEO highlight a series of structural and people dynamics leaders should look out for in their own efforts.

Last March, Meta’s CEO Mark Zuckerberg labeled 2023 the “Year of Efficiency” in a company-wide email, noting that “flatter is faster.” According to Zuckerberg, “It’s well-understood that every layer of a hierarchy adds latency and risk aversion in information flow and decision-making.”

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Eric M. Anicich is an Associate Professor in the Management and Organization Department at the University of Southern California’s Marshall School of Business. His research focuses on the forms and functions of social hierarchy within groups.

Michael Lee is an assistant professor of organizational behavior at INSEAD. Follow him on Twitter: @yanche.

Juan Pablo Sánchez Celi is the CEO of Avinsa, which is transforming the industrial food processing landscape through pioneering sustainability and efficiency. A Ph.D. candidate in sustainable management, Juan’s leadership extends from scaling Avinsa’s poultry processing capacity to embracing innovative “teal” organizational principles, underpinned by a passion for adventure and lifelong learning.