If you google “Apartment Company“Some headlines glorify this leadership style, others denigrate it.”
The truth? It all depends on how you build it.
Treehousefor example, relied entirely on flat hierarchies and kicked out all the managers. Two years later, the bosses were brought back. valve struggled with similar issues with its flat structure, leading to diversity problems, slow announcements and game releases, and inaction on social issues.
At the same time, flat organizations have been successful, with flat companies like Wolt and Supercell to have managed to achieve international success.
So how do you build a flat organization that is actually functional and effective in real life?
10 things a flat corporate culture needs to function
- Clearly defined responsibilities.
- A cloud-based wiki.
- A strong onboarding strategy.
- Collaboration throughout the organization.
- A recruitment process that gives preference to self-reliant candidates.
- Supported professional development.
- Project manager – sometimes.
- Open communication and curiosity.
- Best-in-class collaboration tools.
- Team celebrations and individual recognition.
1. Clearly define responsibilities
A flat organizational structure requires a clear division of responsibilities. Each job title should include a clearly defined description of daily tasks, KPIs and expectations. This allows employees to take ownership of their work and make independent decisions.
Otherwise, the lack of a rigid hierarchy can lead to people working in isolation, power struggles, and general confusion.
2. Build knowledge centers
In a flat structure, knowledge should be easily accessible. Invest in a cloud-based wiki where employees can find everything they need, from developer documentation to vacation policies.
At my company, we use Confluence with dedicated spaces for software developers, quality assurance engineers, project managers, designers, recruiters, marketers, and salespeople.
Grant access to most resources, but restrict sensitive information with detailed permissions. Keep documentation comprehensive, but still clear and concise. FAQs and “dos and don’ts” lists with examples are great ways to achieve this balance.
3. Create a structured onboarding process
In flat organizations, there may be less obvious ways for new employees to navigate the company and build relationships with colleagues across different teams. A structured onboarding process can introduce key contacts, communication channels, and collaboration tools to help them integrate smoothly.
Start with the essentials: HR documents, company policies and equipment setup. Then guide one or two colleagues through the first few weeks in parallel.
Introduce the new employee to the entire department in a casual welcome meeting where everyone explains their role and the projects they are involved in. This makes it clear who is responsible for what and who the new employee can turn to if they need help.
To ensure that self-directed learning is structured and complete, organize onboarding resources in the user-friendly corporate wiki mentioned above.
At my company, we also believe in project-based learning. Assign small, independent projects to the new employee so that he or she learns through hands-on work early on and contributes to the team.
4. Facilitate cross-departmental collaboration
Encourage your employees to use internal resources and learn from their colleagues. Need to verify information? Talk to a subject matter expert, not just a big language model like ChatGPT!
For example, at my company, copywriters can easily arrange interviews with developers or project managers to confirm their research and views. There are no middlemen, the copy is accurate, and the work gets done faster.
5. Only consider candidates who show initiative
A flat organizational structure requires people who are autonomous, organized and proactive.
Someone can be an excellent specialist, but if he is not manage their time and make decisions independently, they will not be able to work without supervision and are not a good hire for a flat company. Your recruiters should have a Recruitment strategy to identify candidates that thrive in autonomous environments.
Look beyond traditional job boards and explore professional communities. People who engage in professional communities show initiative in their field.
Pay attention to how a candidate describes their accomplishments. For example, whether they use “I” or “we” says a lot about their mindset and work style.
During the interview, ask candidates to set goals and metrics for the probationary period. This will help you better assess their confidence and initiative.
Ask about the organizational structures of the candidate’s previous companies and how they think a structure like yours could benefit them. This will help you better gauge their mindset and compatibility with your team.
6. Invest in professional development
Flat structures offer less traditional Financial support Ways that can otherwise demotivate ambitious employees. The solution? Horizontal growth.
Horizontal growth means advancing professionally by taking on more challenging tasks, participating in cross-functional projects that require more extensive experience, and having more decision-making authority and control over one’s work.
In my company we create personalized Plans for professional development for employees who want to advance professionally. We also invest heavily in continuous learningwhich include conference tickets, career-related courses and specialist literature for employees.
This allows employees to expand their skills, take on new responsibilities within their roles, or even move across departments to other teams. Of course, we combine this with regular Performance appraisals and salary adjustments.
7. Decide how flat you want to stay
I am not a fan of extremes, like Holacracy (a management system without managers). As Redwerk grew to about 50 employees, I realized I needed to hire project managers to provide a more personalized service to each client.
Project managers are not only the primary point of contact for the client, but also plan the entire software development, identify risks and distribute the workload fairly among all team members. They also keep an eye on team dynamics, help avoid conflicts and intervene at the first sign of low morale.
This work is critical to maintaining consistent high-quality service to all customers and allows employees to focus on strategic growth rather than operational tasks.
There is no reason to eliminate all leadership roles entirely. The key is to create a balanced company culture where everyone, regardless of their position, continues to feel comfortable asking questions, challenging the status quo and making suggestions.
8. Question every idea
Flat structures are praised for their freedom to share ideas. The catch is: you don’t want to stifle creativity, but you also don’t want to waste time on dead-end ideas.
My solution? Encourage people to ask, “So what?” This allows employees to examine how an idea impacts the achievement of their goals. Asking “why” after each proposed idea encourages new perspectives.
9. Use collaboration tools
In a flat organization where information must flow freely and decision-making is decentralized, Collaboration tools are the glue that holds everything together.
Project management software, instant messaging apps, and document sharing services keep everyone in the loop, regardless of their position in the company. We base our project management on Jira, while communication takes place via Slack and Google Meet.
10. Celebrate team victories as a team
Flat structures are based strongly on a shared sense of responsibility. When teams celebrate together, they are connected by shared experiences and achievements.
This fosters camaraderie, trust and a sense of community, which is crucial for overcoming challenges and tackling future goals as a unit.
These celebrations can be big or small. For example, when we signed a major deal with a North American staffing giant in 2021, we hosted a lobster party for the entire team. On a smaller scale, we also publicly recognize individual and team achievements in company meetings and internal newsletters.
I chose a flat organizational structure primarily to eliminate the bureaucracy I hated in vertical organizations. This allowed me to create a pleasant and relaxed work environment for our distributed team of 90 people. If you’re ready to give it a try, these 10 tips are a good place to start.
