Why Hierarchies Can Outperform Networks (And Vice Versa)
<p>I still remember the bright autumn day in 2014 when I turned off of the main road in Exton, Pennsylvania onto a remote path. I was going to meet Brian J. Robertson, the creator of a hot new “flat” management approach called <a href="https://en.wikipedia.org/wiki/Holacracy" rel="noopener ugc nofollow" target="_blank">Holacracy</a>. I was <a href="https://digitaltonto.com/2015/how-to-decide-whether-holacracy-is-right-for-you/" rel="noopener ugc nofollow" target="_blank">skeptical</a>, because it seemed to be a cumbersome way to go about governance, but I was open to learning about it.</p>
<p>Many companies, <a href="https://www.fastcompany.com/3044417/zappos-ceo-tony-hsieh-adopt-holacracy-or-leave" rel="noopener ugc nofollow" target="_blank">most famously Zappos</a>, were enthusiastically adopting it and there was no shortage of <a href="https://www.fastcompany.com/3048338/fire-your-boss-holacracys-founder-on-the-flatter-future-of-work" rel="noopener ugc nofollow" target="_blank">hype among the punditry</a> about abolishing hierarchies. Brian, for his part, was gracious and patient with me, explaining how and why everything worked. Still, I had my doubts and remained unconvinced.</p>
<p>Recently, Stanford’s <a href="https://www.bobsutton.net/" rel="noopener ugc nofollow" target="_blank">Bob Sutton</a> pointed to <a href="https://www.saeromlee.com/" rel="noopener ugc nofollow" target="_blank">Ronnie Lee’s</a> <a href="https://onlinelibrary.wiley.com/doi/epdf/10.1002/smj.3333" rel="noopener ugc nofollow" target="_blank">research</a> that confirmed my (and <a href="https://ecorner.stanford.edu/articles/hierarchy-is-good-hierarchy-is-essential-and-less-isnt-always-better/" rel="noopener ugc nofollow" target="_blank">his</a>) suspicions. While flatter structures can promote creativity, we need hierarchies to execute well. The truth is that hierarchies form naturally and, rather than trying to ignore that basic fact, we need to design enterprises with hierarchical networks in mind.</p>
<h2>Evolution, Religion and Leadership</h2>
<p>It’s become common today for many, especially in the academic world, to dismiss religion as the product of ancient superstition. Yet in <a href="https://amzn.to/3VthNRs" rel="noopener ugc nofollow" target="_blank"><em>The Righteous Mind</em></a>, social psychologist <a href="https://en.wikipedia.org/wiki/Jonathan_Haidt" rel="noopener ugc nofollow" target="_blank">Jonathan Haidt</a> makes a powerful case that it plays an important evolutionary role. “There is now a great deal of evidence that religions do in fact help groups to cohere, solve free rider problems and win the competition for group-level survival,” he wrote.</p>
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