When you google “flat company,” some headlines glorify this management style, while others disparage it.
The truth? It depends entirely on how you build it.
Treehouse, for example, went all in embracing the flat structure, ditching managers entirely. Two years later, they brought the bosses back. Valve faced similar struggles with its flat structure, leading to diversity issues, slow statement and game releases and inaction on social problems.
At the same time, flat organizations have seen success, with flat companies like Wolt and Supercell having scaled and earned international success.
So, how do you build a flat organization that is actually functional and effective in real life?
10 Things a Flat Organizational Culture Needs to Work
- Clearly defined responsibilities.
- A cloud-based wiki.
- A strong onboarding strategy.
- Collaboration across the organization.
- A hiring process that prioritizes autonomous candidates.
- Supported professional development.
- Project managers — sometimes.
- Open communication and curiosity.
- Top-notch collaboration tools.
- Team celebrations and individual recognition.
1. Define Responsibilities Clearly
A flat organizational structure requires a clear-cut division of responsibilities. Each job title should have a well-defined description of daily tasks, KPIs and expectations. This empowers employees to own their work and make independent decisions.
Otherwise, the lack of a rigid hierarchy can lead to people working in silos, having power struggles and overall confusion.
2. Build Knowledge Hubs
In a flat structure, knowledge should be readily accessible. Invest in a cloud-based wiki where employees can find everything they need, from developer documentation to vacation policies.
At my companies, we use Confluence, with dedicated spaces for software developers, quality assurance engineers, project managers, designers, recruiters, marketers and sales reps.
Grant access to most resources but restrict sensitive information with detailed permissions. Keep the documentation thorough yet clear and concise. FAQs and “dos and don’ts” lists with examples are great ways to achieve this balance.
3. Create a Structured Onboarding Process
At flat organizations, there might be less obvious pathways for new hires to navigate the company and build relationships with colleagues across different teams. A structured onboarding process can introduce key contacts, communication channels and collaboration tools to help them integrate smoothly.
Start with the essentials: human resources paperwork, company policies and equipment setup. Then, pair one or two peers to guide them in parallel through their first weeks.
Introduce the new hire to the entire department via a casual welcome call where everyone shares their roles and what projects they contribute to. This illustrates who’s responsible for what and who the new hire can contact if they need help.
To ensure self-guided learning is structured and complete, organize onboarding resources in the user-friendly company wiki mentioned above.
At my company, we also believe in project-based learning. Assign small, independent projects to help the new hire learn by doing and contributing to the team early on.
4. Facilitate Cross-Department Collaboration
Encourage employees to tap into internal resources and learn from their peers. Need to verify information? Talk to a domain expert, not just a large language model like ChatGPT!
For example, at my company, copywriters can easily schedule interviews with developers or project managers to validate their research and point of view. There are no intermediaries, the writing is accurate and the work gets done faster.
5. Only Consider Candidates Who Are Self-Starters
A flat organizational structure requires people who are autonomous, organized and proactive.
Someone can be an excellent specialist, but if they can’t manage their time and make decisions independently, they won’t be able to work without supervision, and aren’t a good hire for a flat company. Your recruiters should devise a hiring strategy to identify candidates who thrive in autonomous environments.
Look beyond traditional job boards and explore professional communities. People who participate in professional communities show initiative in their field.
Pay attention to how a candidate describes their accomplishments. For instance, whether they use “I” or “we” tells you a lot about their mindset and work style.
During the interview, ask candidates to set goals and metrics for the trial period. This helps gauge their self-awareness and initiative.
Ask about the organizational structures of the candidate’s previous companies and how they think a structure like yours could benefit them. This helps you assess their thought process and compatibility with your team.
6. Invest in Professional Development
Flat structures offer fewer traditional promotion paths, which can demotivate otherwise ambitious employees. The solution? Horizontal growth.
Horizontal growth means progressing in a career by taking on more challenging tasks, participating in cross-functional projects that require broader experience and having more decision-making authority and control over their work.
At my company, we create personalized professional development plans for employees seeking career advancement. We also invest heavily in continuous learning, covering conference tickets, job-related courses and professional literature for employees.
This allows employees to expand their skill sets, take on new responsibilities within their roles, or even move laterally to different teams. Of course, we pair this with regular performance reviews and salary adjustments.
7. Decide How Flat You Want To Go
I’m not a fan of extremes, like holacracy (a management system without managers). When Redwerk grew to about 50 people, I realized I needed to hire project managers to provide a more personalized service for each client.
Beyond being the primary client contact, project managers plan all software development, foresee risks and distribute the workload fairly among all team members. They also keep an eye on team dynamics, helping prevent conflicts and intervene upon the first signs of low morale.
This work is essential for maintaining consistent, high-quality service for all clients, allowing employees to focus on strategic growth rather than operational tasks.
There’s no need to scrap all management roles entirely. The key is balancing the culture so that everyone still feels comfortable asking questions, challenging the status quo and offering suggestions, regardless of seniority.
8. Question Every Idea
Flat structures are lauded for their freedom in idea sharing. Here’s the catch: You don’t want to stifle creativity, but you also don’t want to waste time on dead-end ideas.
My solution? Encourage people to ask, “so what?” This empowers employees to examine how an idea translates into achieving their goals. Asking “why” after each proposed idea encourages fresh perspectives.
9. Use Collaboration Tools
In a flat organization, where information needs to flow freely and decision-making is decentralized, collaborative tools are the glue that holds everything together.
Project management software, instant messaging apps and document-sharing services ensure everyone stays in the loop, regardless of their position in the organization. For us, project management relies on Jira, while communication thrives on Slack and Google Meet.
10. Celebrate Team Wins as a Team
Flat structures rely heavily on a shared sense of ownership and accountability. When teams celebrate together, they bond over shared experiences and achievements.
This fosters camaraderie, trust and a sense of being in it together, which is crucial for navigating challenges and tackling future goals as a unit.
These celebrations can be big or small. For instance, in 2021, when we signed a massive contract with a North American staffing giant, we threw a lobster party for the entire team. On a smaller scale, we also publicly acknowledge individual and team achievements in company meetings and internal newsletters.
I chose a flat organizational structure primarily to eliminate the bureaucracy I hated in vertical organizations. It helped me create a comfortable and relaxed work environment for our distributed team of 90 people. If you’re ready to try it, these 10 tips are a good starting point.
