“Invert the pyramid” in management

Until recently, there was near consensus in traditional management around the idea that directors, presidents, vice presidents and even managers were the people who best understood the company, its sectors and departments.

This mindset held that, if an individual occupied a position of leadership or prominence, it was because, naturally – and even automatically –, he or she had greater and better knowledge than everyone else.

In this context, corporate organizational charts took on a “pyramid” shape, a graphic representation that also symbolized this hierarchy of knowledge, in addition, of course, to communicating the formal relationships of power and authority.

The pyramid structure in companies has historical roots and is related to the development of organizations over time, influenced by military, administrative and industrial practices.

It continues to be a very common organizational design, although today there are more horizontal and agile models, such as “matrix structures” and “network organizations”, which aim to increase flexibility and innovation.

However, defining and implementing new structures does not guarantee effective changes in day-to-day management practices, which are rooted in the organization’s culture. We need to go further, seeking to “invert the pyramid”, turning it upside down.

A clear example of this change was given recently by Belmiro Gomes, CEO of Assaí Atacadista, one of the largest employers in the country, with 84,000 employees spread across 294 stores and 25 states. In an interview on the “CBN Professional” podcast, a partnership between the newspaper “Valor Econômico” and CBN radio, he stated: "Those who perform the job know more than the leadership."

This statement reflects the central idea of the lean management system and represents one of the foundations of the “Toyota way”. It is a simple concept but, given the strength of more traditional corporate culture, a difficult one to put into practice. Yet, when we reflect deeply, it is the most logical approach.

The people who are in the daily routine of operations, performing their roles over years, often decades – such as factory operators, field salespeople and office professionals – are naturally closer to the company’s activities and business. They have unsurpassed practical knowledge of the difficulties and ease of the work, of what works and what does not.

Many of these people are also closer to those who really matter: the customers. Through countless interactions, they know what customers want, what adds value and what is not relevant.

This proximity makes frontline professionals much better informed than, for example, the company’s own senior management, which, for obvious reasons, cannot be present at every moment and place where the work happens.

This change in mindset is crucial for us to be able to make better decisions, solve problems more effectively, improve our customers’ experience and increase psychological safety in the workplace.

Under these premises, it can be said that the role of leadership needs to be essentially redefined: from holders of command to facilitators of collective wisdom. Leaders who become attentive listeners and catalysts of employees’ practical knowledge, encouraging innovation and agile responses to market demands.

They are the architects of a culture in which value is recognized at every level of the organization, inverting the traditional pyramid to place direct experience and customer needs at the center of all strategic decisions.

But how can this be put into practice? By getting as close as possible to the people who “make the work happen” in order, first, to listen to them about the problems they identify and the solutions they propose. Then, by supporting the implementation of these solutions, provided, of course, that they make sense.

This is, in essence, the basis of a "new leadership" that is proving more productive and promising in organizations every day. So don’t waste time. If you hold a leadership position, reflect on how the "pyramid" operates in your organization. And, if appropriate, start the process of "inversion".