Exploding a Myth

The Myth

Conventional wisdom tells us that one of the core strengths of hierarchical business organizations it they enable people in positions of power to cut through the details, make decisions quickly, and ensure compliance with those decisions. Problems are solved quickly and decisively!

The Truth

Classical functional hierarchies are not good at solving problems! If that rubs you the wrong way, count yourself among the majority.

While functional hierarchies certainly do have their strengths in business organizations, solving problems is not one of them. It's just the opposite.

The primary mission of a hierarchy is to perpetuate the hierarchy. A perpetual inventory of problems is necessary to do that. Solving all the problems would eliminate the need for the hierarchy.

Cooperation Delivers Better Decisions

Every business we have seen can profit from better decisions; higher quality problem solving and a stronger sense of commitment to the decisions. To get better decisions, important issues must be addressed by skilled groups of dissimilar people working interdependently across functional boundaries to achieve commonly held goals.

Groups like that, we call them cross-functional teams, trained to use effective group processes will:

• Take the time to assess the facts, as well as their own beliefs, and fully understand the situation before planning action.
• Decide for the good of the business, rather than for more self-centered reasons.
• Understand the real drivers of human behavior better than their competitors do.
• Apply that understanding to continue to develop their skills and processes, and their ability to win customers.
• Consistently deliver higher quality solutions to vital business problems.