Valve, a leading software company, adopted a radical approach to organisation by eliminating traditional hierarchies in favour of a ‘flat’ structure. This structure allowed employees to select their own projects, resulting in a self-organising utopia. However, the reality proved less than ideal.
While this structure initially promised freedom and flexibility, it soon gave rise to chaos and confusion. Without clear roles or responsibilities, employees found it challenging to make decisions or progress their careers. The flat structure also resulted in a lack of accountability, with no one taking responsibility for failures.
Furthermore, the absence of formal leaders led to the emergence of informal power structures. These ‘hidden hierarchies’ were often based on personal relationships rather than merit, leading to favouritism and creating a toxic work environment.
Finally, the flat structure also had a negative impact on diversity. Valve’s workforce became predominantly male, with women finding it difficult to fit into the male-dominated culture.
Valve’s experiment with a flat structure serves as a cautionary tale for other companies considering similar changes. While it may promise freedom and flexibility, the reality can be chaos, confusion, and a lack of diversity.
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