Pyramid management: an organisational model losing momentum

When will the era of pyramid-shaped, hierarchical management come to an end? While this model has driven the success of countless companies for more than 130 years, it is now reaching its limits. Propelled by the Covid-19 crisis, we have entered a world in which we must be more responsive and agile to face competition and the many challenges that lie ahead. Diluting responsibilities across different hierarchical levels therefore proves counterproductive and prevents employees from demonstrating sufficient autonomy and a sense of responsibility.

We are seeing a significant increase in employee disengagement within this type of organisation, and this situation is only confirmed among generations Y and Z. In time, it inevitably translates into lower productivity, higher absenteeism and increased turnover, with very substantial costs for the company on the horizon.

The conclusion is clear: the new generations have a very different relationship with work compared with those that came before. Indeed, they are seeking greater meaning and fulfilment, and they need to feel at one with the mission and values of the company that employs them.

With these new rules of the game, companies must make themselves more attractive, cultivate their "employer brand" and develop governance models that offer greater flexibility and a more horizontal structure, in order to encourage the emergence of collective intelligence.

​The dynamic in which the manager gives orders and the employee simply carries them out then becomes an outdated pattern that is destined to disappear before long.

Today, the challenge for every entrepreneur is to think actively about the management model best suited to their organisation. The "collaborative" system is a new path that several of our clients are experimenting with. It allows employees to take part in the life of the company in a very concrete and proactive way.

To rethink these management models, we must first and foremost redefine the relationship that binds managers and their teams and reverse the trend.

At the heart of this reflection lies the notion of a relationship of trust between the manager and their employees. To this are added transparency, consideration, the delegation of certain responsibilities and, ultimately, autonomy in decision-making.

The manager is now there to encourage the development of skills and the engagement of their teams.

To do so, there is unfortunately no miracle to-do list; however, drawing on our experience, these 6 key actions seem to us essential to begin the shift towards a more collaborative approach:

1. Mobilise the team: involve employees in decision-making processes by stimulating their solution-oriented mindset

2. Create attractive working conditions: listen to employees' needs and expectations and put in place a working environment that fosters mobility and agility

3. Entrust new tasks and responsibilities: invite employees to make decisions within their area of expertise and draw on collective intelligence to develop innovative solutions

4. Encourage information-sharing: communicate regularly and transparently about ongoing projects, results and the company's strategic developments

5. Recognise the work: institutionalise a 360-degree feedback culture, offer praise and continually communicate small successes as well as areas for improvement

6. Allow the right to make mistakes: accept that, by making room for greater autonomy, the level of quality may sometimes be open to improvement

This may seem simple at first glance, but make no mistake. Courage, the ability to question oneself, an innovative vision and determination are qualities required of any company leader wishing to initiate such a transition.

A change in management culture cannot be decreed; it is lived, little by little, and supported over time through various initiatives of training, coaching and collectively run workshops, with the active participation of managers and employees.

So, over to you to reflect . . .

Written by Johanne Ciccarone, Managing Director