Most organisational hierarchies were designed for a world where knowledge was scarce.

Today knowledge is everywhere.

Which raises an interesting question:

What exactly is hierarchy supposed to do now?

The management operating system most organisations rely on was built for a different world.

The traditional hierarchical structure which relies on a “senior” to direct the work of “juniors” who function without empowerment is still thriving in many organisations.

This style may have worked well back in the days of master craftsmen and their apprentices and it made perfect sense when mastering a single trade would keep your family fed for a lifetime. But for today’s knowledge-based companies, it’s holding them back. Here’s why:

  1. The barriers to acquiring knowledge have nearly disappeared. The new skill isn’t learning, but judgement and curation of that knowledge to sift the good and useful from the irrelevant and incorrect.

  2. Job-related specifics are evolving so fast that the notion of a “master craftsman” is replaced by the idea of a “career learner” who is continuously curious and growing. That doesn’t need hierarchy — it needs motivation, regardless of the level of seniority.

These shifts require a different way of thinking about organisational design to get the most out of teams regardless of levels or hierarchy. Leadership hiring needs to take these new realities into account and select leaders who are skilled in their fields, adept at adjusting quickly, and confident enough not to be threatened by the shift in power dynamics that comes from this new design.

The implication is simple.

Leadership in modern organisations is less about directing work and more about creating the conditions for good judgement to emerge across the organisation.

Companies which are still recruiting to place cogs in a machine will fall behind.