How Flat Organizations Become Toxic

Six months into her new job, my client was frustrated, depressed, and debating whether to leave. It was a stark contrast to how she felt just six months earlier. At first, Alicia had jumped at the opportunity to be part of the marketing team at a dynamic and promising startup. After 10 years with a traditional consumer goods company in the midwest, this felt like the perfect career move.

She had flown out to the west coast and spent time in the company office, experiencing the open, creative, and flat culture — a breath of fresh air, she thought, in contrast to her current workplace. By the end of the visit, she was sold. But now, she complained, the reality was far from the promise.

The collaborative, creative culture? Sure. But also chaotic and ambiguous. Too much collaboration meant no one owned decisions; accountability was completely lacking. And decision making involved grueling rounds of discussions that inevitably turned contentious and nasty.

Democratic and flat? Alicia quickly learned that there were hidden power structures. Gender differences were stark — the Vice Presidents, with the exception of one, were all men, and part of the early founders’ group. “It felt like high school,” she told me. “The influence you had depended on whether or not you were part of the elite in-group.”