Implementing a flat management organization in consulting
data-major is a consulting firm specializing in data-related topics, which has experienced rapid growth since its creation in 2019. This growth naturally led to a proportional increase in staff numbers and eventually raised organizational questions.
With this challenge, Clémentine Huet, CEO and founder of data-major, made a unique choice in the consulting industry: implementing a completely flat organization with no hierarchy.
Clémentine, who had a long experience working in large consulting firms, initiated this bold move to overcome the pitfalls commonly encountered in other organizational models.
The vision of data-major was simple: empower the individuals who make up the team and eliminate unnecessary friction often associated with hierarchical organizations.
After 12 months of experience, we wanted to reflect on the deployment of this organizational structure at data-major.
The good, the bad, the ugly: this article aims to provide full transparency and feedback experience to all individuals and organizations exploring alternative management models.
What’s a flat management company?
Also known as holacracy or flat management, a non-hierarchical business model relies primarily on the responsibility of team members and their ability to self-organize as a group.
This type of organization aims to highlight individuals by recognizing their uniqueness and allowing them to shape their path within the company. There is no predefined career plan, nor roles or titles based on seniority.
In other words, decision-making never relies on validation by a superior or a manager. Each employee enjoys great autonomy in carrying out their tasks, which also requires a high level of trust towards the team.
For example, at data-major, there is no formal absence request procedure. Each person is free—and therefore responsible—to judge whether taking paid leave is compatible with the smooth running of operations and whether client projects will be negatively impacted.
A flat management organization, therefore, cannot rely on hierarchical authority to govern its operation. This has several impacts:
A high level of transparency is necessary so that everyone can make informed individual decisions with the same level of information.
Soft skills and communication abilities must be given special attention. data-major organizes training and coaching sessions for employees on the subject.
The absence of hierarchy must be offset with some kind of guidance, particularly for more junior team members.
How did we implement flat management at data-major?
The transition to a new managerial model happened in early 2023 when data-major had around 40 employees. While the question of hierarchical organization wasn’t a priority in the company’s first 18 months, during which Clémentine managed all employees directly, it emerged as a topic with the establishment of significant growth objectives.
It’s worth noting that the data-major team consists of consultants, who, by nature, are highly autonomous in their daily tasks. This made it easier to implement such an organizational structure.
This impactful change was naturally communicated and discussed collectively before being rolled out. The company ensured that all employees were on board, with the main goal being to foster collective intelligence, supported in part by value-sharing mechanisms (such as profit-sharing schemes).
Employees’ commitment is formalized with the signature of a Responsible Charter, setting the framework and rules for the organization’s operation. The organization itself takes on the role of facilitator.
At data-major, the co-pilot role has made it easier to implement the non-hierarchical organizational model. While the employee remains responsible for the successful execution of assigned tasks, they can rely on a co-pilot who offers guidance thanks to their larger experience and seniority. Without taking on the role of a direct manager, the co-pilot coaches, advises, and guides new employees upon their arrival at the company. In total, five co-pilots have been appointed within the company.
Each employee is given quantitative and qualitative goals that provide a clear path aligned with the company’s strategic vision. As a result, the organization operates without a dedicated HR department.
Regarding compensation, data-major has once again fully embraced this groundbreaking model, as salary adjustments are made through discussions between the pilot and their co-pilot. These are then submitted to Clémentine, who has set a goal of approving at least 90% of the requests she receives.
However, this system has been challenging for some employees, who expected salary increases to serve as recognition for their work. As a result, the company had to innovate to find alternative ways to symbolize merit recognition, notably through the creation of internal innovation projects where individual creativity can be expressed.
What should you take into account when implementing flat management in your organization?
Unsurprisingly, adopting an organizational model based on flat management principles is a decision that must be carefully thought through, as it inevitably involves significant transformations in the company’s daily operations and challenges to overcome.
A framework that can be unsettling for senior profiles
While junior profiles generally adapt well to this organizational model, which aligns with the aspirations of Millennials or Generation Z, flat management challenges long-established codes that may be deeply ingrained in more experienced employees.
The absence of hierarchical ranks (manager, supervisor, director, etc.) can be disconcerting, even off-putting, for some profiles, who are used to viewing a prestigious job title as part of their compensation package.
Although the absence of titles avoids unnecessary ranking among individuals, profiles motivated by hierarchical authority may struggle to thrive in this environment unless they make an effort to adapt, which can affect senior-level recruitment.
The need to unlearn certain practices
Beyond symbolic considerations, these new operating modes require unlearning certain practices tied to traditional models. The absence of rigid processes and validation circuits requires advancing decisions without hierarchical power, which can create challenges.
The success of a flat management organization depends on the team’s communication abilities and its ability to reach a consensus without a final decision-maker.
Fully embracing the flat management model
Moreover, it’s essential to stay true to the self-organized nature of the company and not fall back on a classic hierarchical process at the first sign of difficulty.
It’s necessary to fully commit to the model for it to work. When an employee makes and stands by a decision not shared by the group, the company must assume that position in front of clients.
Additionally, the compatibility of personalities with the principles of non-hierarchical functioning requires adding an extra filter to recruitment criteria.
In conclusion
When asked if, after 12 months, she would make the same choice, Clémentine’s answer is an unequivocal yes. She has observed beneficial effects at data-major: accelerated decision-making, the removal of bottlenecks, increased trust levels, and employee fulfillment.
However, this positive outcome is observed within a context of business growth and financial health. The model remains to be tested when challenges arise.
It’s also important to recognize that not all companies are suited to such a model. Depending on the team’s profile composition, flat management may be more or less appropriate.
Finally, one must be aware that this model, which relies heavily on trust in individuals, may be slightly disrupted by a minority of profiles who may abuse it.
But should a system that works for the majority be called into question because of a few disruptive elements?
For data-major, the answer is a definitive no. Stay tuned for a future article that will expand on this feedback.
