Hierarchy or Process? How Companies Should Really Work

When thinking about corporate structures, we are often taught in universities and business books that companies resemble pyramids. At the top, you find the boss, with all the layers of hierarchy neatly placed below. This image shapes how we understand leadership and organization – but is it still relevant in today’s world?

In my opinion, the pyramid model doesn’t reflect reality. Organizations aren’t as rigid as this image suggests. Instead, they function more like processes where decisions and responsibilities flow. The term supervisor hints at this: it doesn’t mean someone standing above employees, but rather someone who stands before them in the decision-making chain, like a step in a process.

The Pyramid – An Outdated Model?

While the pyramid structure may make sense in rigid organizations like the military, it seems increasingly out of place in today’s fast-paced business world. Modern organizations are defined by agility, collaboration, and flat structures.

Also, I don’t know about you, but I’ve never seen a company that actually looks like a pyramid. If anything, a pyramid would make for terrible office space – not to mention how cramped things would get toward the top.

Organization as a Process – A Better Model

In a process-oriented structure, leaders and employees act more like cogs in a machine. Each role is part of a larger workflow aimed at creating value together. Leaders don’t manage by sheer authority but by steering and supporting the next steps in the process.

For example, consider a manufacturing company. A department manager is responsible for ensuring that materials arrive on time, quality standards are met, and production runs smoothly. This role is less about hierarchical oversight and more about coordinating a seamless process.

Benefits of a Process-Oriented Organization

1. Flexibility: Processes adapt faster to market changes than rigid hierarchies.
2. Collaboration: Teams and leaders work more closely, as they are part of the same value chain.
3. Customer Focus: A process-oriented model places greater emphasis on delivering value to the customer rather than navigating internal power structures.

A Thought from Steve Jobs

“It doesn’t make sense to hire smart people and then tell them what to do; we hire smart people so they can tell us what to do.”

– Steve Jobs

Jobs’ quote underlines the need to move beyond rigid hierarchies and empower employees to bring their best ideas forward. Companies that think in processes benefit from the collective intelligence of their teams – and achieve greater success.

Conclusion

It’s time to question the traditional idea of companies as pyramids. Instead, businesses should be seen as dynamic processes where leaders support, coordinate, and drive progress. Ultimately, it’s not about who stands at the top or the bottom – it’s about how efficiently decisions are made and goals are reached.

What do you think? Should companies focus more on process-oriented models? Let me know in the comments!

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