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The objective of an effective organizational flattening is to streamline the interactions and dependencies between teams, not just to remove people from an org chart. Companies that focus on redesigning workflows and communication patterns first, using frameworks like Team Topologies, achieve sustainable efficiency.
Flat hierarchies are suboptimal. The ideal organization has a 'quantum' structure that can crystallize into the right shape to solve today's problem, then dissolve and reform for tomorrow's. This plasticity avoids the ossification seen in large companies that only reorg every five years when things are completely broken.
Block's CTO reveals a counterintuitive lesson: reorganizing from a GM-based structure to a functional one (where all engineers report to one org) was the key to their AI transformation. This structural change had a greater productivity impact than any specific AI tool they implemented.
The need for a Solution Architect often signals a failure in organizational design. It's a workaround for teams not communicating effectively, a problem better solved by applying principles from frameworks like Team Topologies to foster cross-team collaboration directly.
To create a cohesive product across multiple teams, GitHub uses a framework that forces alignment upfront. By ensuring all teams first deeply understand the problem and collectively identify solutions, the final execution is naturally integrated, preventing a disjointed experience that mirrors the org structure.
A successful reorg simplifies work, but delayering often does the opposite. Pushing management, QA, and coordination tasks onto developers dramatically increases their cognitive load, harming their primary function and leading to burnout. This is a key failure metric for any flattening initiative.
The exponential increase in individual output from AI tools negates the need for traditional, multi-layered management structures. Cash App flattened its design org to just three layers from the CEO, enabling faster decision-making and adaptation to rapid technological change.
When companies approach delayering as a cost-cutting measure driven by spreadsheets and salaries—without considering the capabilities being lost—they are committing 'organizational vandalism.' This approach ignores the complex web of interactions and processes that middle management supports, leading to systemic failure.
Companies like Amazon and Meta that cut middle management are not necessarily wrong to flatten their organization, but they err by doing so without first redesigning the underlying system. The true mistake is removing the people responsible for coordination and decision-making without fixing the processes they managed, leading to chaos.
Brad Jacobs designs org charts based on the optimal structure for achieving goals, defining necessary roles first. He resists shaping the chart around existing employees and their "fiefdoms." This role-first approach means leaving a seat empty is preferable to filling it with a poor fit, ensuring the structure dictates personnel, not the other way around.
Shift from departments staffed with people to a single owner who directs AI agents, automations, and robotics to achieve outcomes. This structure maximizes leverage and efficiency, replacing the old model of "throwing bodies" at problems.