by Peter A. Arthur-Smith, Leadership Solutions, Inc.®

“Individual commitment to a group effort – that is what makes a team work, a company work, a society work, a civilization work” – Vince Lombardi 

 Heterarchies could also be termed as Organic Business Communities because; as you can see from the adjacent pictogram they appear to function more like a village, town or city. This is because they grow organically from the inside-out, rather than from the top down just like our conventional hierarchies. People within heterarchies are more like good neighbors rather than every person for themselves. They are also more focused on their customers, suppliers, alliances and community – outside-in oriented – rather than watching-their-individual-steps in the eyes of their ‘bosses’ – inside-out aligned.

Communities tend to band together and help out other communities or customer companies, especially where there are common or mutual interests. Such realities are far different than for hierarchies, where everyone has to pledge fealty to the person ‘in charge’ and are more interested in crushing their competitors and getting customers to bend to their will.

In fact, hierarchies encourage their ‘insiders’ to be more devoted to organization politics, inside machinations and being absolute loyalists. This causes them to be far less interested in outsiders, who are more likely to be viewed as somewhat alien and inconvenient; unless they pledge allegiance, too. Hierarchies do have their place in military organizations, which is where commercial organizations took their models from. But in military set-ups, with soldiers, sailors, marines and airmen, they are compelled to face the possibility of being killed and therefore ought to be contained in a more coercive environment. Other services like the police, fire-fighting and ambulance crews, where they serve to save lives and may often find themselves in harm’s way, they are also compelled to operate without a lot of wriggle room.

However, it’s debatable whether such rigid structures, policies and procedures are necessary elsewhere in today’s societies; other than in under-developed countries. This is particularly true among the more advanced nations, where people are better educated and often wish to contribute in a more expansive ways rather than just feel they’re in an organizational straitjacket. Most modern-minded people will quickly see the merits of a heterarchy, so let’s make a comparison right now:

Heterarchies (Het) vs. Hierarchies (Hie)

Het – More externally focused

Hie –More internally focused

Het – Inspire people to serve valuable outsiders first

Hie – Require people to serve their own organization first and foremost

Het – More profitable because it’s usually leaner

Hie – Higher maintenance costs and hierarchical privileges

Het – Induce greater innovation to meet customer expectations

Hie – Encourage bureaucracy and internal self-interest

Het – Are more nimble and urgent

Hie – Can be slow and cumbersome

Het – People feel empowered and valued

Hie – People feel constrained and under-valued

Het – Are more team oriented

Hie – Are more individually oriented

Despite their many compelling merits, it will be a big step for current organizations to pursue the heterarchy road owing to a “me-too organization” dynamic and due to those who enjoy the feeling of power wishing to retain that power. Even so, heterarchies are not entirely unknown, as increasing numbers of enterprises try to flatten their organizations. You may be aware of the W.L. Gore & Associates organization that is well known for producing Gore-Tex products. It’s comprised of a number of smaller production plants with a non-hierarchical operating mode – no titles, where people gravitate toward their natural leaders. It’s a notably profitable and successful enterprise with an international presence, too: as well as being a leader within its industry.

As other organizations experiment with flatter organizations, to their benefit, it’s likely just a matter of time before others take the next commonsense step and set up heterarchies. This is particularly probable where there are younger leaders, who have become jaundiced by conventional hierarchies along with their inherent downsides.  For those who are willing to pursue the inviting heterarchical path, they should consider the following:

» One of the lynchpins of a heterarchy is to have capable Strategists to complement its Visionist(s). Unless by default or organizational design: there seems to be a shortage of quality Strategists due to our conventional command-and-control operating mode. Many of those who had such capabilities, either left early to become entrepreneurs – rather than be stifled by conventional environments, joined another more welcoming organization, or haven’t been properly groomed for a more strategic role. Too many organizations have allowed short-term operational thinkers to rise into their executive ranks, with their fixation on near-term numbers. These individuals deliver in the short-term, but then it catches up with them and your enterprise over time.

So where you have a shortfall, you have to look within your organization for inherent strategic talent before it decides to go elsewhere. You need to court it aggressively and then aim to have a transition over the next 2-5 years; at which point your current executives will either have stepped-up or ought to be retired early.

» At the right moment, start educating your workforce on the pros and cons of heterarchies and hierarchies. Encourage your people to understand the key benefits of an outside-in heterarchy organization versus an inside-out hierarchy. They will likely find the greater customer, alliance, supplier and community orientation appealing.

» Start introducing them to the roles of CEO/Visionist, VP/Strategist and Manager-Supervisor/Team Leader roles and educate them on the differences between management and leadership. Enable them to understand that we need both; where management fixates on systems and process and leadership focuses on people and progress.

» Look for ways to give them a more compelling vision and purpose, show them a greater sense of respect and equality, hand them more opportunities for regular accomplishment, let them value strong camaraderie, allow them to feel greater empowerment, and be sure they have enough know-how to perform with confidence.

» Most of all, give them assurance that you’re sincere by showing that your intentions are for real, rather than just rhetoric. In other words, be confident in what you say, be clear in what you say, and be consistent in your actions.

When implementing a heterarchy, you will begin to sense over the next 6-9 months a fresh mood of excitement, greater evidence of your people stepping-up-to-the-plate, and clear signs of extra organization momentum. As it takes hold, you can then announce that your switch to a heterarchy has become complete and permanent. Then encourage them to make the most of your new organization situation, where everyone will benefit in so many ways. Start thinking about your rise to such a leadership challenge today. You won’t regret it.

To find out more about a more People Engaging approach, talk with: