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Hierarchies are dead, but networks need structure
In 2010, a catastrophic explosion ripped through BP’s Deepwater Horizon oil rig, killing 11 workers and triggering what is widely regarded as the largest accidental marine oil spill in history. Subsequent investigations revealed a confluence of technical failures—including problems with the blowout preventer and cement work. Multiple reports also highlighted critical safety warnings that did not receive sufficient attention at senior levels; organizational silos and communication breakdowns contributed to a failure to act on these warnings.
This tragedy illustrates the flaw in traditional organizational hierarchies. Designed for stable, predictable environments, these structures can fragment information as it moves up the chain, distorting reality with each layer it passes through. By the time insights reach decision-makers, they may be sanitized, delayed, or lost entirely. Meanwhile, frontline workers—those closest to customers and operations—spend more energy satisfying bosses than solving real problems.
Yet organizations that simply declare “we’re flat now” or remove management layers without creating alternative structures often find themselves in equally dangerous territory. Decisions stall as no one knows who can make the call. Information scatters across disconnected teams. Hidden power dynamics grow more toxic than formal hierarchies.
Therefore...
Design the organization as a network of teams that connects autonomous but interdependent units around actual value creation. Unlike a traditional hierarchy organized by function or division, a network organizes teams end to end around customer journeys, products, or services—with explicit protocols for how they interact.