How owners organize the management of a small business has a huge effect on internal and external growth. The question is, which leadership structure works best?
By nature, startups tend to start off with a horizontal structure, which follows an employee-centered approach -- fewer management layers with a wide span of authority. On the other hand, as small businesses grow, many adopt the traditional vertical structure, defined by an organizational hierarchy with strong management and subordinate employees.
At ClearCompany, we maintain a fairly horizontal structure and strive to empower employees at every level to be independent and entrepreneurial. We strongly believe in the power of transparency. We’ve found that sharing more information with our team allows them to make strategically-driven decisions that, in turn, enhance performance.
There’s no right or wrong way to structure a company’s leadership. Whether to go with a horizontal or vertical leadership model depends on a number of things, from company vision to size to the overall culture. Here are some pros and cons of each structure to consider, when determining which management style will drive business success:
