Hierarchy and the Redundancy of Potential Command

There are two types of hierarchy: one based on status and power, the other on the relevance of information. When the hierarchy-free organization is propagated, this second kind of hierarchy is forgotten or confused with the first. Nature’s best control system, which evolution has created over four billion years, shows that there is always a need for both a horizontal control axis, which operates autonomously and with a high degree of freedom, and a vertical control axis, which ensures cohesion and, to this end, restricts individual freedom. Thus, the question is not whether we need hierarchy but rather why, where, and how much. We can only ever answer this question for a particular enterprise at a particular time. In a dynamic environment, every enterprise must therefore be able to deal with the interplay between autonomous action and hierarchical control. In an emergency, the steering wheel may have to be pulled hard over, either immediately or using additional management. Establishing the “redundancy of potential command” ensures that the necessary competency is available in good time. Managers perform different tasks at different levels. They wear several hats and must learn how to handle them.