Marketing & Biz

Should You Move To A Decentralized Organizational Structure?

For companies that contain a large portfolio of subsidiaries, how do you ensure that all companies are operating at their full potential? Centralized companies (companies who reserve decision-making to the top management) may have the infrastructure in place by hiring at large and filling in gaps – but where is the diversity and ability for employees to feel as if they are truly contributing to the future of the company? 

One of the biggest challenges facing flat organizational structures is maintaining a balance between freedom and structure so a company can meet its objectives. While being a flat organization is quite trendy, for some businesses it’s become quite chaotic. For these reasons, we’re starting to see companies build in a decentralized way. A decentralized organizational structure is one where mid-level and lower-level managers have the majority of decision making power. The people who are working closest to the projects are the ones with the most say.

TripleOne is a company fully immersed in a decentralized organizational structure and leading the charge. With 19 companies already operating under its banner, they have created an entity where users around the world work together to manage it. By combining an online-based framework with their growing global network, TripleOne aims to empower a community of participating “users” to come together to decide the future of TripleOne’s entire portfolio.

“We rely on the team environment, where every employee has a say in what happens,” James Awad the CEO of TripleOne explained. “Users around the world work together to build and manage the company. Users are rewarded with segments which in turn give monthly cash based on the performance of its companies.” 

If you can build your company in a decentralized manner, you may open the doors to new opportunities that include expanding your team and its capabilities. 

Here are three reasons why entrepreneurs might want to build their company in a decentralized manner. 

1. Anyone Can Be Part Of The Decision Making

By having a fully decentralized, online business, the company can ideally accept anyone, regardless of geographic location. This allows anyone who wants to be involved, to have an active role in the daily affairs of the company. While this is akin to having a distributed team, having a decentralized team takes it one step further. Not only can you find the best talent for your company, but then they are empowered to work on projects that are most exciting to them.

Individuals from across the world can collaborate on ideas and projects that they vote on themselves. You can designate company staff by ‘employees’ and ‘users,’ where employees are salaried to handle day-to-day operations that keep a company compliant and functioning, and users are paid by project or metrics and work on things that make the most sense for their skill sets and talents.

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2. Decisions Are Made By Popular Vote

Decentralization itself means that there is a lack of hierarchy, making the playing field level. With voluntary participation, if an idea is deemed to be viable, all active users have the ability to vote on if it will come to fruition. From there, you can assign jobs to the project where users/employees can choose what job they’d like to apply for based on their skills and experiences. 

Having your team decide what projects they feel will be most innovative for the company, along with compensation tied to success metrics – everyone is aligned with the success of the project and the success of the company. Talents are allocated where best needed and the buy-in for the project is much greater when everyone has a vote.

3. Flexibility In Work Hours

Another major benefit for a decentralized work environment is of course, the flexibility in work hours. Because it’s a decentralized system, there is no “boss” per se, so systems would need to be implemented that reward work completed or metrics achieved. For example, you could create a ‘point’ system, which is given for each vote, suggestion, or completed task. Points translate to money earned. If a user or employee doesn’t finish a task or simply doesn’t have the hours to devote to the project, money isn’t spent on unfinished work or time in the office.

Your team can control the amount of work on their plate so they can devote more or less time to the project if needed. This is a great perk to anyone who might be working through a family emergency, burnout, or simply wanting a well-deserved sabbatical.

Creating a decentralized organization takes some upfront planning, but if done right, you just may see an increase in employee engagement, work satisfaction, and profits.

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Forbes – Entrepreneurs

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