Flat organizations tend to be more skilled and more able to foster innovation

But flat Organizations rely heavily on srong self-motivated and self-regulating individuals – basically a primadonna culture.

If an organization has one level – i.e. it has a flat organizational model, individuals use capability to distinguish themselves. They become more adept at focusing on developing their skills and advertising their capabilities, giving them (at least the successful ones) more clear stature in the company and industry. For companies that require innovation and the circulation of new ideas in their product development operations, this enhances their competitiveness in the market. Additionally, since one’s prestige and stature in the organization becomes driven by their skills, capabilities, and the advertisement of this both internally and externally; these organizations tend to be able to recruit considerable top-notch talent.

Equally, flat organizations are harder to oversee and more complex to maneuver through. They require a broader approach to management as well as a lighter touch so as to not stifle creativity. In a flat organization, the only way to keep a control on direction and activity is through mutual respect and alignment to a common vision. Otherwise, pockets will develop that may have fascinating results, but dissipated strength and local optima will develop. If these are neither harvested nor eliminated, precious resources will be spent without furthering achievement towards the organizational objective. In a research based organization, this is ideal as it allows the individuals (or teams) to explore venues through to their natural conclusion. DEKA’s production of the Segway is a great example of this

Management in a flat organization needs to be done with thorough peer review and mentorship. Everyone, regardless of their seniority should either choose or be assigned a mentor. As individuals gain capability, they may choose their way through continuous learning with different masters – stay with each mentor long enough to gain what they feel as their appropriate level of awareness in a field. As people excel in one direction or another, it is the role of the mentor to encourage the individual to stay with the discipline and continue their journey. Frequently, people will make poor decisions in other’s eyes, but as soon as fences are constructed, hypocrisy becomes established.