A Flat Organization Works Better Than a Pyramidal One.
A flat organization is defined as one that is designed with delegation of responsibility with authority as a prime objective, but also with frequent inspection and accountability. Each section of the business is meaningfully managed by an identified leader who is held accountable for reaching stated goals. This can work very well, especially in rapidly growing situations, however, there is a universal truth which is known by those owners who dare to flatten their organization: Effective delegation yields a better result than if the business organization is controlled by the more senior manager as in a typical pyramidal type business organization where most decisions come from the top and trickle down.
The magic of effective delegation is the added value it brings to the business. Senior management gives middle management an objective to achieve and authority to implement it; middle management is held accountable for the results and is rewarded for success and also challenged with the proposition to further delegate tasks in the same way, always with frequent inspection.
At each selected level, the employee will add additional value to the mission, improving on what previous management would have done, taking the issued objectives and not only delivering as requested and trained to do, but also taking it one notch higher (better, more efficient, more creative, faster, more effective, etc.) Added value each step of the way, that is the magic of a flat business organization in which effective delegation is utilized.