Updated: Jul 22
Achieving business agility needs a system to grow from a hierarchy of authority to a network of eligibility.
That’s because a hierarchy of authority produces a rash of business diseases that threaten business agility.
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Unfamiliarity with network options:
CEOs generally inherit a steep hierarchy and have worked in similar structures most of their career. In some cases, CEOs may not know about the choice of running the firm as a network.
Lack of know-how:
Another factor is that managers may lack the know-how to go about forming a network.
They could learn the steps that they can take to move to network mode of operation, including creating a standard clearing ground for decision-making communicated in real-time, moving staff from one unit to another.
It can involve changing the behavior at the top from that of a tough leader to more of a gardener nurturing the network.
Lack of goal clarity:
A deeper reason is that in many businesses, the overall goal of the business isn’t clear.
In that situation, it would be unwise to move to a network mode of functioning until the goal is defined.
The misconception of power:
The last reason is that CEOs stick to the hierarchy of authority is a misconception of the nature of power.
There is a belief that their power comes from being at the top of a hierarchy, announcing directives to subordinates, and demanding reporting on the status of things.
Social Media Specialist