Creativity Management: the best organizational structure

Organizational structure of a company is the result of many things - the history, strategy, value chain, product line, etc. contest to name a few.

Flat hierarchies tend to foster creativity, but why? What happens if a person has a higher hierarchy - drastic change is often not an option. Imagine being the CEO of a major corporation, what are you going to do, ask them to change their organizational structure?

Flat hierarchies work because of properties such as a) Quick connections to decision makers, b) fast feedback processes and c) a greater intimacy with the problem.

These hierarchies can be implemented in too high - through the implementation of cross-links, direct links to decision makers and Skunkworks.

Other alternatives include asking senior management to sit in open plan offices, reducing the distance and physical barriers between groups, MBWA (management by foot or so), managing differences of status and so on.

From our research at http://www.creativity-management.com.

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Kal Bishop, MBA

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