Networks require hierarchy to (1) create them; (2) establish their rules; (3) maintain and support them; and (4) align the rest of the organization with their autonomy.
In a rapidly-changing digital economy, it’s not surprising that organizations systematically based on competence outdo organizations based on historical authority, where the highest paid person’s opinions—the HIPPO—are often decisive. Yet those doing the work, on the ground, and in touch with customers and other collaborators, on a daily basis, as well as being more in touch with the digital economy, often know best.