Is the Hierarchical Structure of a Clientric Company Different from that of an Industrial Company?
Rudimentary evidence suggests that the answer is yes. Many management consulting firms prescribe flattened hierarchies for large companies. Their reasons are twofold: to create a more flexible and responsive management, and to encourage delegation of decision-making to a lower level. Neither of these reasons follow automatically from observing the transition from industrial to clientric business. In fact, such reasons may come from a misreading of the trend towards clientric business. The goal of a clientric business is to actively respond to the immediate and future needs of individual clients and to maintain an enduring relationship. This is done by rapidly adapting, by correcting errors and by anticipating difficulties. Such responses require autonomy of decision-making by even peripheral employees. Flattening the existing hierarchy may or may not facilitate employee autonomy. It may be possible for employees and departments to exercise great autonomy, even with out-sourcing and dep
