Organisational Structure

In a classic top-down hierarchy, formal roles guide how the information should flow and who gets to make the decisions. In a self-governing organisation, we strive to upgrade the informal relationships so that information can flow more freely, and the decisions are made by those who are closest to the effects of the decision.

How we make decisions is an important piece of the puzzle. The other important piece is how we organise ourselves, i.e. which relationships we establish so that we upgrade how information flows and who decides what. This is where the organisational structure comes into play.

Optimally, teams and people (circles and roles) should be organised around initiatives, i.e. projects that strive to meet long-term tensions. If a circle or role does not meet this requirement, it should be either transformed so that the needs are clearly met or terminated so that resources may be directed towards value creation elsewhere in the organisation.

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