Hierarchical organizations have clear chains of command from CEO down, while flat structures minimize management layers for speed. The speaker prefers hierarchies for their clarity, though flat teams move faster. Growing companies often try to stay flat as they scale, creating tension between efficiency and clear leadership.
Now there are obviously two main ways you can structure a team and your company. Uh, I much prefer the hierarchical, uh, where you're— probably pronounced that wrong, uh, where you, where you have a hierarchy, right? Where you have your CEO, you have your managers, you have the people underneath them. But then obviously there's also this kind of flat structure, the startup structure, which is typically a lot more efficient and effective to work quickly on something, right? And many of the companies we see now try to bring that into— like, as they become larger, they want to bring this kind of structure.
