How Outsourcing Complements Flatter Organizational Structures
What distinguishes a successful leader from the rest of the crowd? I’d say it’s foresight, the ability to make effective decisions and develop sound strategies based on foreseen scenarios. Leaders who think ahead are better prepared to leverage all the new opportunities emerging from rapidly evolving business environments.
I’m emphasizing foresight because there have been conversations that 2022 (or beyond) will see a breakthrough structural change among organizations. According to industry observers, this year may see the rebirth of what has been called “flatter organizational structures.”
But first, what is a flat organizational structure? Well, it means that there is less focus on middle management, if any, and that all contributors are all viewed as equals.
To be clear, the idea of having a flatter organizational structure is not new. It has been a topic of discussion among thought leaders since 2006. It wasn’t until 2015 that the concept became far-reaching. Many large to mid-sized enterprises worldwide, including Cisco, Whirlpool, and Pandora, have since moved toward adopting a flatter structure.
Businesses that employ a flatter structure have fewer hierarchies than traditional structures. Since the management layers are limited in flatter organizations, the chain of command (as we know it) is not austere. This arrangement results in faster communication flow and better collaboration among members in most cases. Employees are also empowered to work autonomously and participate in the decision-making process.
Of course, the framework may not apply to all. But for those decision-makers recognizing the compatibility with their organizations, they know that the shift will not happen overnight. The transitions will only be smooth if you have a dependable partner that shares your foresight. Similar to how outsourcing emerged as a robust business strategy in 1989, having an outsourcing partner can help you break ground in 2022 and beyond when it comes to organizational transformation.
But before we dig deeper into the crucial role that outsourcing plays in all of this, let us first dissect the aspects that fuel the conversations around flatter organizational structure.
Why Is Flatter Structure Re-emerging as a Business Strategy in 2022?
The Pandemic as the Great Leveler
The general structure of work as we know it follows rigid top-down hierarchies — that is until the pandemic hit.
You’ve probably seen viral videos of pets hijacking a Zoom meeting, small children barging into live interviews, or a boss inadvertently using a potato head as a filter during a conference call. Scenes like these have become part of the new work normal. And while these scenarios offer a good laugh, they serve a much greater purpose than comic relief.
These candid experiences reminded us that we all are humans beyond the hierarchy of job titles, cubicles, and other walls separating people in the workplace (whether symbolic or actual). Indeed, the pandemic served as a great leveler, granting us the unique privilege of peeking into each other’s “unfiltered” lives.
Such an environment opens up a culture of authenticity and mutual trust, two ingredients that make for an effective flatter structure. Seeing their bosses’ quirks and vulnerabilities, employees became more comfortable communicating their ideas and sentiments to their superiors. Likewise, managers have realized that they can trust their people to deliver even when unsupervised.
Following these realizations, visionary leaders know that there is simply no turning back. After all, the biggest trends born out of the recent global crisis will continue to reshape the business sector in more ways than one.
Flatter Structure Enhances Employer Branding
We’ve heard time and time again how the COVID-19 pandemic has tipped the power balance in employees’ favor. As employee experience takes center stage, companies have begun emphasizing employer branding to attract and retain top-caliber team members. This dynamic is expected to continue in 2022 and beyond. Adopting a flatter organizational structure can position most businesses (depending on the industry, of course) for success in this area.
Employers now know that offering attractive salaries is no longer enough to fill the huge talent gap. Employees are simply more interested in companies that promote a culture that essentially brings humanity back to the workplace.
Now that that employees are in the driver’s seat, they are looking for authentic communication, empathy, diversity, inclusion, and employee wellness from their future employers. These values are either inherent or easily upheld in a corporate structure that, by design, facilitates relationship-building interactions through the elimination of hierarchical barriers.
Flatter Structure Satisfies Organizations’ Need for Speed
With leaner hierarchies and less bureaucracy in place, a flatter structure enables businesses to respond to disruptions faster. Again, this trait is something all organizations will benefit from with or without a pandemic. By eliminating (or at least simplifying) complex organizational matrices, information dissemination becomes faster and more straightforward, allowing companies to mitigate the impact of an unprecedented crisis or exploit new market opportunities.
A Leaner Hierarchy Complements a Decentralized Workforce
Hybrid and fully remote work models will be a staple in the future of work. And flatter organizational structures perfectly complement this looming reality. The leaner the hierarchy, the easier it will be to implement faster, more dynamic, and flexible workflows. With employees and teams dispersed in different parts of the globe, structural changes are inevitable to sustain speed and optimize efficiency.
How Does Outsourcing Address the Struggle When Adopting a Flatter Structure?
#1: Outsourcing Tears Down Layers Quickly and Radically
If your organization is looking to transition to a flatter structure, breaking a long chain of command should be your first course of action. One way to fast track implementation is to identify which roles are your company’s core expertise. Non-core business functions can be delegated to an outsourcing solutions provider who does in fact possess that particular function as a core competency.
This strategy facilitates flatter and faster operations and, at the same time, drives significant savings. Businesses can even eliminate entire departments, such as recruitment, accounting, or legal, from their payrolls through outsourcing. Another benefit that outsourcing providers can offer flatter organizations is the delegation of a single point of contact. This step allows faster collaboration and communication.
#2: Outsourcing Helps Build Agile Teams
Almost every professional field continues to experience various disruptions that require the ability to respond immediately. A single agile team will not suffice. Companies that want to adopt a flatter structure will have to create a network of teams capable of embracing new processes, structures, and cultures faster.
BPO and KPO services, such as recruitment process outsourcing, are designed to be scalable, enabling enterprises to ramp up or downsize staffing with minimized logistical restraints. Outsourcing solutions providers also offer end-to-end services. Handling everything from hiring to onboarding, outsourcing companies empower businesses with access to job-ready professionals on demand.
#3: Outsourcing Empowers a Broader Workforce to Make Sound Decisions
As the hierarchy of power decreases, decision-making responsibilities are shared among individual members in flatter organizational structures. Therefore, employees deployed in crucial, customer-facing roles must be empowered to independently make the best possible decisions. This is another benefit that outsourcing can deliver.
Outsourcing allows businesses access to high-caliber employees with future-ready skills. For instance, at SuperStaff, we hire customer service agents with key technical competencies and soft skills. We further enhance these skills during training and onboarding and ensure that they are exhibited on the job by incorporating them into the workflow. Day in and day out, our customer service representatives are empowered to de-escalate customer complaints and resolve issues within their levels as much as possible.
The Possible Downsides of a Flatter Structure
#1: Less Accountability May Lead to Lack of Transparency
With less absolute authorities to defer to in flatter organizations, employees may feel less compelled to take ownership of their actions and decisions, especially if it leads to negative consequences. This reason is why the establishment of trust and a sense of responsibility among members is highly essential in organizations with decentralized leadership.
#2: The Risk of Poor Decision-Making
Organizations with a flatter structure afford their members greater autonomy. While this kind of setup promotes speed and efficiency, it also puts members at risk of making spontaneous decisions that may be rather costly. The best way to prevent such instances is to hire team members who display excellent critical judgment skills and to continuously invest in honing such abilities.
#3: Blurred Boundaries
Organizations with fewer hierarchies tend to have more relaxed dynamics. While such an environment is conducive for promoting collaboration and creativity, it tends to blur the line between acceptable and unacceptable behaviors. The lack of boundaries may result in conflict and division among members. The best antidote to this situation is to constantly communicate and emphasize the value of professionalism and respect to all team members.
Look Forward and Stay Ahead
With the magnitude and complexity of the changes occurring in these modern times, I cannot, but once again, overemphasize the value of foresight. The future will continue to bring challenges, and disruptions will be ingrained in the new normal.
Leaders with a forward view and realistic grasp of their organizations’ strengths and challenges are poised to offer the best response — be it transitioning to a leaner organizational framework, or implementing a shift in strategy. In this endeavor, SuperStaff is inclined to provide support to businesses and leaders.
Tell us about your vision, and together, let’s come up with scalable solutions that best fit your organization. Schedule a consultation with one of our Solutions Architects today.
