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Building Horizontal Organizations

Oct 7, 2024

Explore the game-changing shift from rigid hierarchies to dynamic, horizontal organizations! Uncover the secrets to boosting collaboration, accountability, and efficiency with proven principles, actionable strategies, and real-world case studies. Don’t miss out—discover how to transform your organization today!

Explore the game-changing shift from rigid hierarchies to dynamic, horizontal organizations! Uncover the secrets to boosting collaboration, accountability, and efficiency with proven principles, actionable strategies, and real-world case studies. Don’t miss out—discover how to transform your organization today!

Building Horizontal Organizations

by Howard M. Guttman

Overview

This white paper outlines the transition from hierarchical to horizontal organizations, emphasizing collaboration, accountability, and efficiency. It discusses the principles, processes, and benefits of building horizontal organizations, supported by real-world case studies.


Key Concepts

  1. Why Go Horizontal?

    • Traditional hierarchical models suffer from silos, slow decision-making, and lack of agility.

    • Horizontal organizations promote cross-functional collaboration, faster decision-making, and collective accountability.


  2. Principles of Horizontal Organizations

    • Clear Goals:

      Establish shared strategic objectives.

    • Defined Roles:

      Clarify roles and responsibilities across teams.

    • Accountability:

      Empower individuals and teams to take ownership of results.

    • Transparency:

      Foster open communication and conflict resolution.


  3. Steps to Transition

    • Align the Senior Team: Create consensus on strategy, goals, and team dynamics.

    • Convey Goals to Teams: Communicate the purpose and expected outcomes of the horizontal model.

    • Construct Ground Rules: Define decision-making processes, conflict resolution, and accountability mechanisms.

    • Train Team Leaders: Equip leaders with skills for managing cross-functional teams.

    • Align Business Teams: Cascade the horizontal model through all organizational levels.

    • Observe and Assess: Monitor team processes and measure progress.

    • Provide New Skills: Offer training in conflict management, decision-making, and strategic thinking


  4. Benefits

    • Increased agility and speed-to-market.

    • Enhanced employee engagement and satisfaction.

    • Greater accountability and improved financial performance.


Case Studies

  1. Liz Claiborne’s Special Markets Business:

    • Shifted from silos to cross-functional teams.

    • Achieved significant increases in sales, profitability, and employee morale.

  2. Dairy Farmers:

    • Transitioned to horizontal teams for product categories.

    • Improved resource allocation and financial reporting, driving shareholder value.

  3. Johnson & Johnson:

    • Leveraged high-performance teams for critical initiatives, achieving growth and profitability.


Challenges

  • Overcoming resistance to change from senior management.

  • Avoiding "consensus traps" that delay decision-making.

  • Developing the necessary skills for team leaders and members.


Read the entire white paper here.


Conclusion

Building horizontal organizations requires a fundamental cultural shift, clear processes, and ongoing commitment to alignment and accountability. Organizations that embrace this model can achieve higher levels of collaboration, performance, and financial success.

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