Business Forum | The blind spots of a miracle solution

Many experts and management schools proclaim the end of verticality in the exercise of power in organizations. The old vertical models of military and Taylorist inspiration are over. Our era celebrates the idea of ​​a rapprochement of the leader with his base, even an evolution of the figure and the function of authority in the company towards an in-depth sharing of power, towards greater humanity.

Posted at 12:00 p.m.

Pascal Leduc
President, Leduc Strategy and Business Management Consulting

To observe the emergence of progressive models from the 1990s (especially German and Japanese) to the many recent start-up propelled by success, the proof is well established that the creativity, motivation and empowerment of the troops are key elements of success.

To this end, for many organizations, the implementation of a horizontal (or flattened) structure seems obvious. It generally follows an awareness of senior management, according to financial imperatives sometimes disguised as pledges of virtue, which materializes in a restructuring leading to the abolition of levels of managers and a decompartmentalization of functions.


PHOTO HUGO-SÉBASTIEN AUBERT, LA PRESSE ARCHIVES

Pascal Leduc, President at Leduc Strategy and Business Management Consulting

These efforts will be matched only by initiatives to stimulate the creation of informal networks, creativity and individual entrepreneurship. The implementation of new horizontal management models will often be accompanied by offices reorganized according to an “open concept”. The latter means the end of an organization isolating the different functions and this organization of space which essentially rewarded the executives of large closed offices and the employees of narrow cubicles alongside the noisy printer. To support this transformation and stimulate the desired fluidity of communications, we will see an increase in team-building“reverse mentorships” and other vehicles aimed at creating informal networks in the company.

Moreover, in a world where the quest for all-out equality and distrust of elites go well beyond the business sector, there is a tendency to demonize symbols of the vertical structure, such as the distance and loneliness of the decision maker, perceived as the remains reminiscent of coldness and condescension.

We expect our leaders to be more authentic, more transparent and sometimes even to confess their vulnerability. Legitimately, we expect them to convince rather than constrain. But are we forgetting that the distance (not to be confused with ignorance) and the loneliness of the decision-maker are sometimes necessary and consubstantial with decisions devoid of personal biases, during internal crises, massive layoffs? Difficult decisions on which the decision-maker will be held responsible, with no room for error. The health crisis is not without reminding us that some realize that well-exercised authority could be much more an obligation than a privilege, that it is accompanied by great decision-making responsibilities which aim to protect the both the organization and its members/employees.

The establishment of a horizontal structure can therefore be a noble idea, provided it is relevant to the context of the organization and to modernize managerial authority without abolishing it or drowning it. The most common mistake is to abolish managerial positions and levels and fail to adapt administrative and approval processes.

The consequence is immediate: the few “surviving” managers are overwhelmed with paperwork and asked to make a series of decisions for which they often have neither the experience nor the required expertise.

Ironically and cruelly, out of breath bosses won’t be any more available or accessible than those in the old vertical structure! Training, development and communication will suffer. What interest for young managers to work for a company where the possibilities of development and advancement towards management positions are limited? With a vain hope of replacing executives in positions where the workload is unbearable?

In short, in a world where talent is coveted, you have to think twice before setting up a poorly thought-out structure under the sole impetus of the era of time. It will eventually turn against the organization, its shareholders and its employees. And they won’t hesitate to put the final nail in the coffin of the failed horizontal structure when they evaluate the company on the popular job search site Glassdoor.


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