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How Networks of Competence Are Crushing Hierarchies of Authority


Firms run as networks of competence tend to grow faster and have higher staff engagement then firms run as hierarchies of authority

For the most part, the discussions in conferences and articles about management today take place without ever recognizing the distinction between hierarchies of authority and networks of competence. Endless discussions of low staff engagement, limited innovation, lack of psychological safety, weak teamwork and slowing growth proceed with little if any recognition that these are inevitable consequences of running the firm as a hierarchy of authority. As shown in the Figure 2, examples in a variety of sectors, include technology (AAPL, MSFT, GOOG), communications (META), retail (AMZN, WMT) manufacturing, (NVDA, TSLA.

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