Try A Heterarchy

Here’s an interesting word. Most organizations, large and small, are hierarchical. There is a pyramid structure with the CEO on top, supported by managers, who are in turn supported by staff. A heterarchy is not anarchy, someone is in control, but the person in control is not always the same.

Topic for Discussion: How does the concept of heterarchy work in a small business?

Answer: There are many ways. Small businesses might have different project managers for various business activities.

We saw how effectively this is done at Ziba Design, where the right talent was assembled for each project. In the area of innovation, many small businesses effectively select a “champion” of a new product or service concept or a new marketing idea.

The champion is responsible for evaluating the new idea, formalizing it, testing it, and then reporting back to the team with a recommendation to go forward or not. Giving someone responsibility at this level can be inspiring to the individual because the business owner is confirming his or her value to the organization.

Topic for Discussion: How does the concept of heterarchy work at Wahoo's Fish Taco?

Answer: You can read more about this company by going back to our alphabetical listing to find the transcript and study guide for this episode. However, the leadership at Wahoo's literally turned the old hierarchical and very traditional form of leadership upside down when they made the baby brother the CEO. In our ten years of studying small and growing businesses we have never seen this. The middle brother, Ed said, "Wing can't tie his shoes and his has trouble combing his hair." Wing is the oldest brother and should be the CEO but instead he is in charge of marketing. Ed also said, "Wing is the best in the world at what he does."

This is so refreshing. The CEO is not the best at marketing and does not make marketing decisions. The CEO is not the best at real estate and does not make real estate decisions. The CEO is not the best at restaurant systems and does not make systems decisions.

Now you are wondering, what does the CEO do? He is the gathering point. He is the center of the wheel. Mingo is the budget guy and has to make all the parts fits together as a whole, however, he runs a heterarchy which highly values the talents and abilities of others. Also, the brothers were smart enough to know what they didn't know so they not only hired a person with the needed knowledge; they made him a full partner in the business.

You think about it: Does your business or could your business operate as a heterarchy? If not, why? Do you see the benefit of this strategy? If you choose to adopt this type of culture, would need to change your hiring practices?