From hierarchy to autonomous teams: how to choose a management model
A modern company does not have to choose between control and freedom as two extremes. The CEO designs different ways to coordinate different work: where a standard is needed, where a fast local decision is needed, and where shared expertise is needed.
Start with the problem, not a buzzword
Hierarchy is useful where safety, legal accountability and a common standard are critical. An autonomous team is faster where it can see the customer and independently test the outcome. A network of experts is appropriate when knowledge is distributed across functions. A poor redesign begins by copying someone else’s organisation chart; a stronger one begins by mapping decisions, handovers and places where the customer loses value. At McKinsey, the operating model covers not only structure but also processes, people, incentives, technology and behaviour.642
Which approaches appear in real companies
Netflix emphasises context and an accountable decision owner; GitLab, written, asynchronous coordination; Haier, entrepreneurial units tied to user value; Buurtzorg, small professional teams with shared support; W. L. Gore, direct connections and personal commitments. These are not five stages of progress. Each model solves its own problem and comes at its own cost: a need for competence, documentation, transparent economics or discipline in keeping commitments.2527282930
What changes in the CEO’s role
It is increasingly difficult for the CEO to act as the central approver of every issue. Their job is to set direction, risk boundaries and escalation rules, provide information and people, and then assess the consequences of decisions. This is not a surrender of authority: complex conflicts between functions, investment bets and reputational issues remain matters for the whole business. Atlassian separates the roles of driver, approver, contributors and those informed; Amazon distinguishes reversible bets from those that are hard to reverse, while Netflix connects autonomy with access to context.142526
New challenges overlap
Geopolitics and supply chains change access to markets; skills shortages constrain transformation; technology changes the economics of work; investors expect both growth and resilience. In Future of Jobs 2025, employers named skills gaps as the main barrier to change. The CEO needs a model that can redeploy resources as its market changes, without losing quality control or the team’s trust.184854
How to design your own version
Take one customer process and define who makes decisions locally, what information they see, what is standardised centrally, which risks require approval, and how the team receives resources and demonstrates results. Test the model on one complete area of work, rather than across the entire company. After a quarter, measure cycle time, quality, customer experience, management workload and the number of escalations. Only then decide what to scale, change or stop. This will show which changes actually improve work before you extend the model across the company.
Questions before a decision
- Which decision is waiting for the CEO today solely because authority is unclear?
- Which standard protects the customer, and which merely keeps control at the centre?
- What does the organisation chart fail to show: delays, dependencies or informal influence?
Sources
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- 25Netflix · Netflix Culture Memo2024 edition; checked 2026-10-02
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- 27Haier Smart Home · Annual Report 20252026-04-27
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