Third kind

Some companies decide to keep things loose. They have little hierarchy, initiatives can come from a variety of places as a response to a variety of inputs (customers, markets, intuition, experience, data, trials, mistakes, etc.), and the flexibility of the company makes it so it can adapt to changes and decisions fairly quickly without a lot of guidance.

Other companies decide to put structure around things. They build a clear hierarchy, initiatives often come from the top as a response to a limited amount of inputs (often gut feeling and previous experience), and the rigor of the company makes it so it will adapt to changes as quick as an heavy amount of guidance is deployed through its rank.

There is no right or wrong, you just have to figure out what works best for you and for the people that work with you and around you.

There is also a third kind of company. It is the company that puts structure while still wanting to keeping it loose. The company where decisions come from the top with the expectation that people will accept them just because. The company that pays lip service to the importance of its people while at the same time keeping them limited to tasks and urgencies. The company that struggles more than the others to adapt and change, just because nobody has a clear idea of what the hell is going on.

There are more company of the third kind than there are of the first and second combined.

You do not want your company to be of the third kind.

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