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Navigating the shift to a flatter organisation: Insights on adapting to change

As companies move toward flatter structures, overcoming challenges like "zombie structures" and fostering a culture of collaboration are key to unlocking the full potential of a more agile, innovative workforce

Friend: Hey Ajay, I’ve been hearing a lot about companies shifting to flatter organisational structures, but I’m concerned about the challenges that might come with it. Doesn’t this just create more confusion and chaos in how things operate?

Ajay: That’s a completely valid concern. Moving to a flatter organisation can indeed be efficient, but it’s not without its challenges. It’s crucial to understand that it’s not just about eliminating layers; it’s about effectively managing how decisions are made and how communication flows.

Friend: I can see how old habits would creep back in. If people are used to a hierarchical setup, they might revert to seeking approvals from higher-ups.

Ajay: Exactly! Even after a restructuring, individuals may instinctively look for approval from their managers, which can slow everything down. This phenomenon is often referred to as “zombie structures,” where the mindset hasn’t fully adapted to the new framework. It’s essential for organisations to recognise that simply changing the structure isn’t enough; they need to foster a culture that aligns with this change.

Friend: So, even if the structure is flat, it doesn’t mean it’s functioning that way?

Ajay: Precisely! If only some teams fully embrace the new model while others cling to the old ways, it can create significant friction. This inconsistency often leads to resentment among employees who feel caught in a limbo between old and new systems. Clear communication about the new roles and expectations is essential to mitigate this confusion.

Friend: Wow, that must make it tough for leaders to manage the transition.

Ajay: Absolutely. Leaders play a pivotal role in this shift. They need to adopt a guiding approach rather than a micromanaging one. It’s about empowering teams to make decisions and encouraging collaboration. This shift in leadership style can help build trust and promote a more innovative environment.

Friend: And I guess team members need to adapt their skills as well, right?

Ajay: You’re spot on! Reskilling is crucial in this context. Employees need to develop collaborative skills, critical thinking, and the ability to manage budgets effectively. Many are accustomed to simply following orders, so this transition requires a significant mindset shift.

Friend: Sounds like a major cultural change is necessary for this to work effectively.

Ajay: Exactly! It’s a marathon, not a sprint. Organizations need to invest in training and ongoing support to facilitate this cultural transformation. With the right communication and patience, a flatter structure can thrive, leading to greater innovation and responsiveness in the long run.

—Dr Ajayya Kumar is a management thinker, art enthusiast, mentor, business advisor, author, and strategist. Views expressed are his own and do not reflect the newspaper's policy.