The most complex organization is the one with two structures

Each hierarchical organization has, in reality, two different structures that increase the complexity of the organization. On top of the hierarchical structure that defined who reports to whom, there is a network structure of all the people in the organization and how they interact with each other to perform the work. A hierarchical structure has managers, the network structure has leaders/influencers. Everyone in the organization needs to know and navigate through those two structures.

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