Inverted Pyramid Structure
Is the inverted pyramid structural model just an up side down hierarchical organization chart? On the surface; it certainly is! However at a deeper level it fundamentally can turn an organization on its head; and all for the better.
The inverted pyramid model is an extremely simplistic model; most effective for complex organizations. Of course the model itself is useless without the successful implementation of all the change dimensions indicated in the VAT (Visual, Auditory and Tactile) change model. (Figure 1) The inverted pyramid model can be an extremely effective enhancement within the Visual Structure dimension of the VAT change model; lofting the organization to new levels of success.
Figure 1 VAT (Visual, Auditory, Tactile) Change Model
What many executive teams work out is a very simple visual org chart that enhances and aligns with their new vision and strategies. This simple visual org chart has the senior executive at the bottom of the chart and then the rest of the executives at the next level up. Only names and areas of focus are displayed. The visual org chart places the customers at the top of the chart, with the employees directly under the customer. Place actual customer names in the customer section of the chart where ever possible. Directly under the names of the employees are the team leaders or managers. The concept is that the leaders are there to support those closest to the customer. The same concepts apply whatever level of chart is being produced. This can be enhanced with a matrix flavor that includes multidimensional (cross functional or lateral) teams based on strategic imperatives. (Figure 2)
Figure 2 Inverted Pyramid Organizational Model
Leaders can be initially uncomfortable with the model. The senior leadership team often struggle with this supporting role being reflected in the visual org chart. They demand accountability and responsibility clarification. Of course, we work with all of them on RACI (Responsible, Accountable, Consulting and Informing) charts for all roles.
Naturally, sorting out the layering strategy is critical. However it is in reference to supporting employees and not controlling employees as it would be in a traditional hierarchy. One must question the executives on the spans and layers of the structure finding the right balance. So many organizations go with a flatter structure and then watch the organization struggle: whether it is lack of skills of the leaders, inadequate systems or processes to support the leaders. But it just does not work. In no time the organization is adding layers again often because the underlying mind set has not changed from managing and controlling to serving and enabling
We must work closely with the team on finding the optimum numbers for spans and layers in a supportive role for leadership. It is important to truly understand what the real value add is for each role. And of course, additional leadership training and revamping specific processes is critical as well.
We must be tenacious about these issues as well as building in much needed ongoing flexibility to address the spans and layers issue. Gone are the management roles that have a couple of employees reporting to them. They must be combined in focus areas that are supporting at least 10-20 staff. Possibly more if feasible. One must look at a matrix flavor where those in the focus area’s really are enabled (not managed) by at least two dimensions, one focusing on “how” and the other on “what”.
Not all the executives and managers will support the new structure. The usual destructive politics will occur. Claims that the structure is not right for the organization are raised. However the concern is usually centered on the fact that they believe the new structure is not right from their own individual power, status and control perspective. They worry about their own roles and their place on the visual organization chart. Also the optical view that the inverted pyramid gives the customers and front line employees new found status can rub some leaders the wrong way. Yes, we must have a few career planning sessions with different members of the leadership teams through the process.
The staff as a whole love the simplicity and additional status of the inverted pyramid model. They are a little suspicious at first that this is a gimmick. However as they start to see executives and managers acting differently over time, they begin to believe it was for real. The staff responds well to the RACI charts. Take longer to warm up to the corresponding increase in focus on metrics and performance measures. Each role has to have meaningful and clear measures. These measures are a large component of the newly designed inverted pyramid structure. Effort must go into the accuracy and fairness of the measures. Many employees in the past have been measured in a subjective manner and rated on how well they pleased their managers; rather than meaningful measures based on what they contributed to the organizational goals
As the numerous structure issues are being addressed, the senior leaders begin feeling that they are truly setting up a flexible, responsive and customer centric organization. This flexibility, speed and focus on the customer are key to success. As we truly have no time for the past organizational traps.
And the inverted pyramid model is an excellent start at breaking free of those traditional traps.
