Every time that I’m presenting our management system based on “complex adaptive system”, I’m showing a slide with a hierarchical structure view on the left and a network view on the right. I’m doing it to explain to people that in any system with people create a network structure.

From Taylorism to Decentralization.002

There is always someone that needs to open my eyes to the fact that the hierarchical pyramid view with lines between the top and bottom elements is much more straightforward than the network diagram. While this is a valid comment, it’s missing an understanding of systems and humans order.

A system is a collection of parts that interact with each other to reach a purpose. Any Organization (and business) is a system. Therefore, any organization will have a network structure that will be established and continuously change by people in the organization (and robots in the future). The people network creates order in the system. The hierarchy structure built by people to gain control with a goal to simplify the system complexity.

But In reality, hierarchical organizations have two layers of structure that create a very complex three-dimensional structure. This 3D structure is ten times more complex than a network structure. The first layer is the network structure that depicts all interaction between people. This network is the natural order created by people. The second layer is the hierarchical structure set by organization management. People find themselves self in the two layers, and many lines between those two layers make the actual structure of a very complex three-dimensional structure.

I know it’s hard to digest it, but the networking structure has a simpler structure than using the deceptive hierarchical structure.


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